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Canberra Today 19°/21° | Friday, March 29, 2024 | Digital Edition | Crossword & Sudoku

Figures show property tax a flop

Catherine Carter… the Government has failed.
FIGURES from the Consolidated Financial Report for the June quarter reveal a major shortfall on what the ACT Government expected to receive from the controversial Lease Variation Charge, the introduced as a new tax on July 1 last year., says ACT Property Council executive director Catherine Carter.

The figures show that only $8.725 million was received from the property sector against a budget of $22.382 million – a shortfall of $13.657 million.

“The numbers reveal that the ACT Government has appreciably failed to achieve its budgeted revenue from the LVC,” she says.

“The Government has indicated that the shortfall has been caused in part by timing issues associated with the lodgement of development applications. The Property Council does not accept this explanation.

“While it is evident that a number of development applications have been lodged, many are now not proceeding further because of the size of the LVC.

“Earlier this year, an independent report by the Allen Consulting Group, ‘The ACT Lease Variation Charge: Implications for housing affordability, development and growth’, released in May, confirmed that the design, scale and application of the charge would have significant, adverse consequences for housing affordability in the Territory, as well as sustainability and urban infill; and Canberra’s long-term growth and development.

“Now, in a further sting for the Government, and for the Canberra community, it has become clear that the new Urban Improvement Fund announced as a 2012-13 Budget initiative, with $22 million in funding promised to come directly from the LVC, will not be realised.

“The ACT Government needs to recognise that the LVC policy is wrong and has failed.”

 

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