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So where are we going with tax reform?

By johnboy - 18 June 2012 8

Andrew Barr has been catching bouquets for his tax reform process (as near as I can tell it can be summed up with a sensible “eat the rich”) so it’s only fair he get asked some questions about what he’s trying to achieve here:

Andrew Barr today refused to explain the long-term impacts of his own tax reform, according to ACT Shadow Treasurer Brendan Smyth. Mr Smyth said the Treasurer’s refusal to explain the end outcome of his 20 year plan is disgraceful.

“Today, Treasury officials could not even explain how high rates would be in three or four year’s time under this reform,” Mr Smyth said.

“To implement a 20 year reform and not explain the final impact is secretive at best and negligent at worst.

“This is a reform which is already slugging homeowners with a 10 per cent rate rise, and Canberrans deserve to know how they will be 20 years down the track.

At a guess I’d say they know but don’t much want to tell.

What’s Your opinion?


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8 Responses to
So where are we going with tax reform?
HenryBG 5:17 pm 19 Jun 12

davo101 said :

“Today, Treasury officials could not even explain how high rates would be in three or four year’s time under this reform,” Mr Smyth said.

So we are to assume that neither Mr Smyth nor the Treasury officials can read? I think you’ll find p.76 tells you what’s going to happen over the next four years.

And in the long-term it’s clear that if they stop collecting $268 million in stamp duty then land tax and rates will have to go up by the same amount. So if they transition the change in over 20 years then you can expect rates to go up 3% pa faster (ie: they have to up by about 80% in total) than they would have if you keep the same mix.

Personally I would have preferred that they introduced it in as people bought houses. Drop the stamp duty completely but anyone buying a house would then have to pay the new rates that cover the lost stamp duty revenue. This way only people who had benefited from the removal of the stamp duty would be required to pay the new rates.

I get it – having paid stamp duty on my house, I am now required to pay for the stamp duty of everybody buying a house from now on.

Can’t we just eliminate all political staffers, the Human Rights commissioner, and the gourmet catering to the crims in the 5-star prison-resort instead?

pajs 4:13 pm 19 Jun 12

Chop71 said :

This gumbymint stings you for 20k+ stamp duty and then tells you they they are increasing rates at around 10% PA for the next 20 years. Really makes you want to jump in and buy property in the ACT…… NOT.

….. and they are all for recycling and renewables, yet rather than buying and improving old homes, they would rather you buy a brand new shoebox.

You do realise the new announcements of rates increases are in part to fund the progressive abolition of stamp duty, don’t you?

davo101 2:54 pm 19 Jun 12

“Today, Treasury officials could not even explain how high rates would be in three or four year’s time under this reform,” Mr Smyth said.

So we are to assume that neither Mr Smyth nor the Treasury officials can read? I think you’ll find p.76 tells you what’s going to happen over the next four years.

And in the long-term it’s clear that if they stop collecting $268 million in stamp duty then land tax and rates will have to go up by the same amount. So if they transition the change in over 20 years then you can expect rates to go up 3% pa faster (ie: they have to up by about 80% in total) than they would have if you keep the same mix.

Personally I would have preferred that they introduced it in as people bought houses. Drop the stamp duty completely but anyone buying a house would then have to pay the new rates that cover the lost stamp duty revenue. This way only people who had benefited from the removal of the stamp duty would be required to pay the new rates.

Chop71 12:00 pm 19 Jun 12

This gumbymint stings you for 20k+ stamp duty and then tells you they they are increasing rates at around 10% PA for the next 20 years. Really makes you want to jump in and buy property in the ACT…… NOT.

….. and they are all for recycling and renewables, yet rather than buying and improving old homes, they would rather you buy a brand new shoebox.

PantsMan 11:46 am 19 Jun 12

Who turns up to an estimates hearing without the basic analysis before them?

amarooresident3 said :

I’d read the Commitee transcript before sounding off. I’d bet Treasury did not say what Brendan thinks they said.

Au contraire, I suspect that Brendan is only about one quater on top of how incompetent this lot are. And if they’ve only discovered reform now, what have they been doing for the last 11 years?

HenryBG 11:07 am 19 Jun 12

If a political party formed in Canberra with the express purpose of cutting all the crap and reducing our rates, I would vote for it.

To have rates increase at 3x the rate of CPI is incompetent bungling malevolence of the highest order.

amarooresident3 9:44 am 19 Jun 12

I’d read the Commitee transcript before sounding off. I’d bet Treasury did not say what Brendan thinks they said.

PantsMan 9:42 pm 18 Jun 12

ACT Treasury: Fudge. Guess. Lie. Hope. Pray.

Seriously, Barr has no idea. The Tax Review got about 8 submissions and it took them two years to write it. Barr then delayed its release for 6 months to bury it. Who is implementing this stuff? The Revenue Office under their stellar new Commissioner?

FFS!

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