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ACT budget 2015-16 highlights

By Amy McPhillips 2 June 2015 64

act budget 2015-16

ACT residents will pay higher rates, spend more money on vehicle registration and see pay parking extended after hours in many of Civic’s car parks under the 2015-16 ACT budget handed down this afternoon.

In good news, the ACT Government has allocated more money for health and education than ever before. It also plans to increase the payroll tax threshold and eliminate taxes on general and life insurance by July 2016.

Here are some of the budget highlights:

Economy

  • The Territory’s operating balance will see a deficit of $597 million in 2014-15, and a predicted deficit of $407 million in 2015-16. This is largely due to the Mr Fluffy legacy, cuts to the ACT’s share of the GST and reductions in Commonwealth health funding.
  • The ACT budget is expected to return to a modest surplus of $50 million by 2018-19.
  • The ACT Treasury projects economic growth of 1 1/2 per cent in 2015-16, with year on year employment expected to grow by  3/4 per cent.

Fees and charges

  • General rates will increase by nine per cent on average for both commercial and residential properties.
  • 2015-16 will be the last year that duty will apply on general and life insurance policies, with the tax on insurance being fully abolished on 1 July 2016.
  • Payroll tax threshold will be increased to $2 million by 2016-17.
  • The ambulance levy will increase by $6.24 to $131.56 for individuals and $12.48 to $263.12 for families.
  • The fire and emergency services levy will increase from $130 to $196 for residential and rural properties.

Health

  • The ACT’s overall health budget is $1.5 billion – the biggest it has ever been and nearly one-third of the total ACT Budget.
  • Canberra’s hospitals will receive $161 million in new health funding over four years, including $40.6 million in extra funding for more beds and services, plus $14.8 million over two years to provide an extra 500 elective surgeries.
  • 16 extra acute care beds across Canberra and Calvary Hospitals.
  • Canberra Hospital will receive a new sterilising facility at a cost of $17.3 million.
  • $5.6 million to Calvary Hospital to refurbish and purchase new equipment for its operating theatre, plus an additional $3.7 million for new imaging services.
  • $800,000 in funding to go to drug treatment and support services in response to Canberra’s ice scourge.
  • $31.9 million over four years to boost mental health services.

Education

  • The 2015-16 education budget is $1.1 billion, the biggest in the ACT’s history.
  • $10.7 million to build a new CIT campus in Tuggeranong, plus $2.6 million to upgrade existing CIT campuses at Reid and Bruce.
  • Belconnen High School will receive $18.4 million to refurbish and upgrade existing facilities.
  • $30.3 million for the North Gungahlin Primary School, scheduled to open in January 2019.
  • $37.8 million to replace and upgrade computers and expand wireless capability across ACT primary schools.
  • $1 million to conduct feasibility studies for a Year 7-10 school in North Gungahlin and a primary to Year 10 school in Molonglo.
  • $615,000 for the training of teachers and support staff about domestic violence, and the development of an online resource centre to connect families to support services.

Capital works

  • $700 million has been allocated to capital works in the 2015-16 budget, $200 million of which is new spending.
  • $10.1 million over four years to begin the transformation and renewal of West Basin, with the construction of a new park and intersections on Commonwealth Avenue.
  • $159.2 million over two years to replace 352 public housing properties along the Northbourne Avenue corridor, as well as at Allawah Court and the Red Hill Housing Precinct.
  • The budget explains that the ACT Government will pay for Capital Metro by making a capital contribution of $375 million after construction is complete.
  • $20 million in ongoing Northbourne Avenue corridor work to prepare infrastructure for Capital Metro.
  • $14.2 million over three years to progress the redevelopment of the ACT Supreme and Magistrates courts.

Roads

  • $24.6 million over three years to duplicate Ashley Drive from Erindale Drive to Ellerston Avenue.
  • $62.3 million for road upgrades in Gungahlin, including $31.2 million to duplicate Gundaroo Drive between Gungahlin Drive and Mirrabei Drive.
  • Traffic lights at the intersections of Belconnen Way and Springvale Drive, and where Hindmarsh Drive intersects with Launceston Street and Eggleston Crescent.
  • $700,000 to undertake strengthening works on bridges along the Monaro Highway from Pialligo Avenue to Isabella Drive.

Transport

  • $2.3 million to progress the Government’s transport reform agenda and adapt to future transport challenges.
  • Introduction of after hours paid parking in Civic from 1 September 2015 is expected to generate $5 million in additional revenue over four years.
  • Car, truck, motorbike and trailer registrations will increase by five per cent.
  • Cost of drivers’ licences to rise by three per cent (a five-year full licence issue or renewal will now cost $171.60, up from $167.10).
  • Car registration administration fees reduced from $15 per transaction to $10 per transaction.
  • Six per cent increase in paid parking. The hit equates to about $230 extra for full-time workers in Canberra this year.
  • $1.3 million over four years to increase the operation of Canberra’s mobile speed cameras.

Suburban renewal

  • $8 million over four years for more frequent mowing, weed control, maintenance of trees, shrubs, lakes and ponds, plus and graffiti methods.
  • $200,000 for playground safety upgrades.
  • $1.7 million to revamp the Erindale and Weston Group Centres.
  • $250,000for feasibility studies to improve walking and cycling access around Tuggeranong and Kingston.
  • $1.5 million over two years for lighting and footpath improvements in Haig Park, and Mort and Lonsdale Streets in Braddon.

Home buyers

  • First home owners grant to be reduced from $12,500 to $10,000 from 1 January 2016, and to $7000 from 1 January 2017.
  • Stamp duty cuts of up to one third to target middle and lower end of the market.

Sport

  • Funding for Melrose High School oval upgrade, including a FIFA accredited synthetic soccer field.
  • $4.6 million over two years to upgrade Phillip Oval.
  • $871,000 in extra funding to maintain the quality of neighbourhood ovals.

Justice and social inclusion

  • Funding for a fifth ACT Supreme Court judge at a cost of $3.1 million over three years.
  • $2.1 million over four years to allow adult offenders to participate in restorative justice.
  • $156 million for ACT Policing, up $1 million on the previous budget.
  • An additional $867,000 in funding for Canberra’s Legal Aid Commission.
  • $107 million in recurrent funding for disability and therapy services, plus $83.4 million for child and youth protection services and $160 million for housing and homelessness support.

What’s Your opinion?


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rommeldog56 7:28 am 16 Jun 15

justin heywood said :

Yes, but to be fair they always said that it was to be a ‘phased’ reduction which could take 20 years (surely the ultimate political get-out clause).

It would be interesting to graph the reduced income from stamp duty against the increases in rates.

No need to graph it. It is in the ACT Gov’t 2015-16 budget papers. Revenue from Stamp Duty is up considerably. Revenue from Annual Rates is up massively.

Now the ACT Gov’t says that the phase out of all stamp duties will be over 20 years (which was always the case for stamp duties on house purchases, but other stamp duties were supposed to have been removed within 5 years, with a proportional minor decrease in the % of rise in Annual Rates). So, they lied about that.

When the ACT govt said that the increase in Annual Rates & Reduction in stamp duty would be “revenue neutral” – they lied. They even went so far as to refuse to publish the costings to prove their claims of revenue neutrality.

Also this morning, the repayment schedule for the ACT Gov’t to repay the loan from the Federal Gov’t for Mr Fluffy (u may recall that it was a loan at concessional rates – not a gift/co-cotribution) has been in the news. Repayments are per annum. The final payment is due to the Feds in 9 years – that final years repayment figure is m$550 ! And yet, projects like Light Rail, expansion in the number of MLAs, road works (even in Gunners, despite the Light Rail), etc, roll on on the back of an almost record Territory budget deficite.

I can not wait to see what the expenditure on Tuggeranong will be in the pre election 2016-17 ACT budget, despite the above. I doubt that will save ACT Labor from losing a seat or two in Tuggeranong.

Why do they do this ? Because ACT voters and Ratepayers didn’t send the ACT Labor/Greens a strong enough message at the ballot box in 2014 and basically seem to retain much of that apathy – though there probably has been a quantum shift in voter/ratepayer views – mostly on the back of Light Rail & the rapidly rising Annual Rates.

Masquara 7:47 pm 15 Jun 15

Mysteryman said :

VYBerlinaV8_is_back said :

Did I hear correctly on the ABC news at 2pm that our local Labor leaders have decided to phase stamp duty out over a period of 20 years or more?

You did. Apparently, it will take “decades”. Even though rates have already increased roughly 30-40% from their pre-2012 levels. But don’t worry, it’s for a good reason: so that Andrew Barr can say we have the lowest stamp duty in the country! Really helpful.

http://www.canberratimes.com.au/act-news/act-chief-minister-andrew-barr-pushes-abolition-of-stamp-duty-out-decades-20150615-gho1p4.html

And no plans to delay the rates hoiking. They clearly know they are doomed at the next election and are trying desperately to claw back some economics bases ready for three elections hence, the earliest they could conceivably be back in after their wicked behaviour.

rommeldog56 5:55 pm 15 Jun 15

VYBerlinaV8_is_back said :

Did I hear correctly on the ABC news at 2pm that our local Labor leaders have decided to phase stamp duty out over a period of 20 years or more?

That has always been ACT Labour’s stated policy – it’s over 20 years.

In my case, after paying the ACT Gov’t $23K stamp duty on purchase of a house in the ACT less than 4 years ago (before that policy was announced by Labour at the 2013 election) and being unable to move because of finances – I’m stuffed. There is no way in such situations, that the decrease in stamp duty on everything else will make up for the 10% avg. increase per annum over 20 years + in Annual Rates.

If I had known that was going to happen, I certainly would have purchased a place across the border.

Fair ? Rubbish.

It’s legalised theft and has turned me – and others i know – away from ACT Labour for life.

HiddenDragon 5:49 pm 15 Jun 15

VYBerlinaV8_is_back said :

Did I hear correctly on the ABC news at 2pm that our local Labor leaders have decided to phase stamp duty out over a period of 20 years or more?

“or more” would be new, I believe, but 20 years has been part of the official line for some time.

Whatever wording is being used today (as compared to last week/month/year) has little real meaning – however it’s dressed up, this is essentially a bait and switch revenue gouge which has been imposed with out-of-touch arrogance.

justin heywood 5:28 pm 15 Jun 15

VYBerlinaV8_is_back said :

Did I hear correctly on the ABC news at 2pm that our local Labor leaders have decided to phase stamp duty out over a period of 20 years or more?

Yes, but to be fair they always said that it was to be a ‘phased’ reduction which could take 20 years (surely the ultimate political get-out clause).

It would be interesting to graph the reduced income from stamp duty against the increases in rates.

VYBerlinaV8_is_back 4:17 pm 15 Jun 15

Mysteryman said :

VYBerlinaV8_is_back said :

Did I hear correctly on the ABC news at 2pm that our local Labor leaders have decided to phase stamp duty out over a period of 20 years or more?

You did. Apparently, it will take “decades”. Even though rates have already increased roughly 30-40% from their pre-2012 levels. But don’t worry, it’s for a good reason: so that Andrew Barr can say we have the lowest stamp duty in the country! Really helpful.

http://www.canberratimes.com.au/act-news/act-chief-minister-andrew-barr-pushes-abolition-of-stamp-duty-out-decades-20150615-gho1p4.html

Kicking goals and making progress.

Sheesh…

Mysteryman 3:21 pm 15 Jun 15

VYBerlinaV8_is_back said :

Did I hear correctly on the ABC news at 2pm that our local Labor leaders have decided to phase stamp duty out over a period of 20 years or more?

You did. Apparently, it will take “decades”. Even though rates have already increased roughly 30-40% from their pre-2012 levels. But don’t worry, it’s for a good reason: so that Andrew Barr can say we have the lowest stamp duty in the country! Really helpful.

http://www.canberratimes.com.au/act-news/act-chief-minister-andrew-barr-pushes-abolition-of-stamp-duty-out-decades-20150615-gho1p4.html

VYBerlinaV8_is_back 2:53 pm 15 Jun 15

Did I hear correctly on the ABC news at 2pm that our local Labor leaders have decided to phase stamp duty out over a period of 20 years or more?

gazket 11:58 am 15 Jun 15

vintage123 said :

$31.2 million to duplicate Gundaroo Drive between Gungahlin Drive and Mirrabei Drive.

Wow, that’s a lot for only a couple of hundred meters of road, well maybe 500m. Maybe it includes another bridge along Mirrabei. Does anyone have any more info on this.

token piece of road to make it look like the gov is listening to Gungahlin residents.

I can’t really see how this one small section will alleviate congestion on Gundaroo Dr as they will have to add traffic lights at Narri and Ginn st and the Mirrabei Dr intersection .

The bottle neck will still be there, just spread out a bit further. You can be guaranteed you will have to stop at each new set of lights.

rommeldog56 5:56 pm 14 Jun 15

JC said :

In my case I brought a house and land package in 1999, land was $50k and I paid about $1000 in stamp duty as it was a split contract. So should I now not have to contribute to running the city because I have paid my stamp duty 16 years ago? Hmm

If u pay Annual Rates, car Rego, fines, etc, and purchase stuff (generating GST revenue), then you are already paying for the upkeep of the City. Stamp duty just goes into general revenue as a one off revenue injection. Annual rates & GST

I paid about $23K in stamp duty. So, I recall that legal loophole by splitting contracts to avoid paying the amount of stamp duty that others had to pay. Yeah – then i wouldn’t think that the avg.10% increase in annual rates pa for the next 20 years was an issue for people who used that mechanism either !!!

rommeldog56 10:38 pm 09 Jun 15

bikhet said :

The fair thing to do with those who had already paid stamp duty on their properties would be to exempt them from that part of the rise in rates that results from the lowering of stamp duty. This is feasible as the government knows, or at least should know, which properties have had stamp duty paid on them, and it should also know what portion of the increase in rates is resulting from the removal of stamp duties.

Agree – but that wont achieve the real objective of raising more revenue. ACT Labor stated that the increase in Annual Rates of 10% on avg. pa for 20 years to compensate for the gradual removal of Stamp Duties would be revenue neutral. A look at the revenue projections in the 2015-16 ACT budget papers shows that they lied.

rommeldog56 10:34 pm 09 Jun 15

watto23 said :

I have no idea what direction the ACT liberals are going in. Yes I defend their right to announce policies at the next election, but given they were light on last election under his leadership, I suspect I’ll be voting for independents or minor parties again.

I also struggle with not voting Labor locally, but given what they have done with Light Rail and Annual Rates, to name just a few things, I will probably go Liberal this time depending on their policies closer to the election. Can always vote Liberal out again in 2020. The risk in voting independent i suppose is that they won’t hold the balance of power, given Greens situation (personally, I think that a vote for the Greens locally is a vote for Labor anyway – at least while Rattenbury is a member of the ACT Government).

rommeldog56 10:26 pm 09 Jun 15

watto23 said :

The Liberal campaign was based on a slogan minus key details. Labor argued they won’t triple in the short term. Liberal argued the rates will still triple. Both arguments are correct.
Only an idiot would think that rates will never ever triple. Just like wages will triple given enough time.

Obviously Annual Rates will triple – eventually. Under the ACT Labor/Greens new Rates/Stamp duty regime, that will happen much, much faster. For example, in another 17 years, my Annual Rates in Tuggers will be $8,500+ pa. That’s based on an average 9% pa increase (not the avg. 10% pa for 20 years that the ACT Gov’t has said). Thats a hell of a lot faster than would otherwise be expected and will put many self funded retirement plans – and the plans of those already retired – into some disaray.

To me, thats a kick in the guts to middle class homeowners and retirees. Most un Labor like.

JC 10:10 pm 09 Jun 15

bikhet said :

JC said :

…Common sense says the best way is rates, but that of course brings up the question about what to do with those who have already paid stamp duty on their properties?

Though frankly I reckon the way the government is lowering stamp duty slowly, and rising rates slowly goes someway to negating this issue and is the best way going forward. Now if the Liebrals would put forward an alternative rather than scaremonger would be happy to listen.

The fair thing to do with those who had already paid stamp duty on their properties would be to exempt them from that part of the rise in rates that results from the lowering of stamp duty. This is feasible as the government knows, or at least should know, which properties have had stamp duty paid on them, and it should also know what portion of the increase in rates is resulting from the removal of stamp duties.

The current approach has two benefits for the government that are disadvantages for the voters:

1 – it allows the government to tax existing property owners twice, and so make the books like better; and

2 – it accustoms the voters to the raise in rates on the boiling frog principle.

Exempt for how long?

In my case I brought a house and land package in 1999, land was $50k and I paid about $1000 in stamp duty as it was a split contract. So should I now not have to contribute to running the city because I have paid my stamp duty 16 years ago? Hmm

JC 9:56 pm 09 Jun 15

dungfungus said :

Labor did a lot of research and allocated a lot of resources to find ” the best and fairest way to tax” and came up with the current system. People voted for that and clearly they, like you, didn’t read the full details of the Liberals “triple your rates” claim. There is no way the information conveyed claimed this was going to happen in the current term of government so your “scare campaign” claim may be convenient but not credible.
Too bad about us not getting a rebate for the rates we have already paid.

So for the record so based JUST on the newspaper and TV ads what was the time frame they alleged this would happen over?

PS. I know looking at the detail it was over 10 years, but don’t ever recall that being part of print, newspaper or radio ads. So no credibility what so ever, scare campaign pure and simple, simply for having no context around the claim.

rosscoact 6:55 pm 09 Jun 15

watto23 said :

JC said :

And Dungfungus before you accuse me of being a rusted on Laborite, I have said openly before I have voted Liebral in the past, when I lived in Sydney in 1995. Though it was the year that Labor kicked the Liebrals out and the reason I voted that way because I didn’t think Labor presented themselves as an alternative worthy of voting in.

The problem I have with the conservative voters in this country, is they think anyone who doesn’t agree with them is a rusted on left winger. The facts are the current federal Liberals are far too extreme right for my liking, Labor are as close to centre that you can get right now, given the Greens sit Left of them. I vote based on policies but many right wing conservatives don’t get that. The extreme right wing faction in the Liberals think they are right, but in reality what wins elections are who has the most palatable policies and extreme right polices will get you voted out just like what happened to Howard after he passed some laws when they controlled both houses. If they put up some more palatable policies closer to centre right, they’d be doing better in the polls.

As for local politics, Jeremy Hanson has never liked anything, or it feels like that. I have no idea what direction the ACT liberals are going in. Yes I defend their right to announce policies at the next election, but given they were light on last election under his leadership, I suspect I’ll be voting for independents or minor parties again.

I have to agree. I like the Libs traditional philosophy about personal freedoms but the Feds are a mob of bumbling nitwits. Probably the worst government ever this country has ever seen. Worse that Billy McMahon if that is even possible.

Labor is not bringing me any joy as an alternative government though.

Locally, what the hell? Jeremy who?

justin heywood 5:48 pm 09 Jun 15

watto23 said :

The problem I have with the conservative voters in this country, is they think anyone who doesn’t agree with them is a rusted on left winger.

Rubbish.
The conservatives are far more ‘broad church’ than Labor; consider, for example, the difference between Abbott and Turnbull. In fact consider the varied background of Liberal pollies generally.
Labor’s representatives overwhelmingly come from the political class and or unions, and they don’t tolerate anyone who deviates from the songbook at all. An ex-pollie on this site recently threatened to ‘do slowly’ a Labor ‘rat’.

I am old. I have been a Young National, attended Labor Party meetings at the Gearin Hotel and handed out pamphlets for a hopelessly token Green candidate (before the Greens lost the plot).
I can tell you what a Labor supporter’s views will be on anything from nuclear energy to border protection. I can tell you what a Green had for lunch, so one-eyed are they. I can’t easily do the same for an average conservative voter.

The problem I have is with people who convince themselves that their voting choices are entirely rational, but somehow their ‘rational’ choice always leads them to vote the same way they always do.

At least Dungers in unapologetically out there with his flag to the mast.

dungfungus 5:29 pm 09 Jun 15

watto23 said :

JC said :

And Dungfungus before you accuse me of being a rusted on Laborite, I have said openly before I have voted Liebral in the past, when I lived in Sydney in 1995. Though it was the year that Labor kicked the Liebrals out and the reason I voted that way because I didn’t think Labor presented themselves as an alternative worthy of voting in.

The problem I have with the conservative voters in this country, is they think anyone who doesn’t agree with them is a rusted on left winger. The facts are the current federal Liberals are far too extreme right for my liking, Labor are as close to centre that you can get right now, given the Greens sit Left of them. I vote based on policies but many right wing conservatives don’t get that. The extreme right wing faction in the Liberals think they are right, but in reality what wins elections are who has the most palatable policies and extreme right polices will get you voted out just like what happened to Howard after he passed some laws when they controlled both houses. If they put up some more palatable policies closer to centre right, they’d be doing better in the polls.

As for local politics, Jeremy Hanson has never liked anything, or it feels like that. I have no idea what direction the ACT liberals are going in. Yes I defend their right to announce policies at the next election, but given they were light on last election under his leadership, I suspect I’ll be voting for independents or minor parties again.

Well, your facts are obviously stronger than my beliefs so everything will be OK.
cc to JC.

watto23 2:25 pm 09 Jun 15

JC said :

And Dungfungus before you accuse me of being a rusted on Laborite, I have said openly before I have voted Liebral in the past, when I lived in Sydney in 1995. Though it was the year that Labor kicked the Liebrals out and the reason I voted that way because I didn’t think Labor presented themselves as an alternative worthy of voting in.

The problem I have with the conservative voters in this country, is they think anyone who doesn’t agree with them is a rusted on left winger. The facts are the current federal Liberals are far too extreme right for my liking, Labor are as close to centre that you can get right now, given the Greens sit Left of them. I vote based on policies but many right wing conservatives don’t get that. The extreme right wing faction in the Liberals think they are right, but in reality what wins elections are who has the most palatable policies and extreme right polices will get you voted out just like what happened to Howard after he passed some laws when they controlled both houses. If they put up some more palatable policies closer to centre right, they’d be doing better in the polls.

As for local politics, Jeremy Hanson has never liked anything, or it feels like that. I have no idea what direction the ACT liberals are going in. Yes I defend their right to announce policies at the next election, but given they were light on last election under his leadership, I suspect I’ll be voting for independents or minor parties again.

watto23 2:19 pm 09 Jun 15

dungfungus said :

But Labor was adamant before the last election that rates would’t triple.
You are now conceding that they will; but you will still vote Labor, won’t you.

My home price tripled also in the past 15 years of owning it.
The Liberal campaign was based on a slogan minus key details. Labor argued they won’t triple in the short term. Liberal argued the rates will still triple. Both arguments are correct.
Only an idiot would think that rates will never ever triple. Just like wages will triple given enough time.

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