BRENDAN Smyth says Andrew Barr’s Lease Variation Charge (LVC) is still stifling Canberra businesses, demonstrated by the fact that it continues to draw significantly less than projected revenue.
“Here is an Andrew Barr tax that hinders development in our city, makes housing unaffordable for families and fails to generate the promised revenue intended for our city,” Brendan said.
“Yesterday’s June 2015 Consolidated Financial Report showed that the actual year-to-date revenue for the LVC was a mere $11.3 million,underperforming by a 20 percent margin from 30 June 2014 actual figures.
“We need to view this in the context of the government’s 2012 election campaign where it promised that its LVC scheme would raise $100 million for ‘urban development’. Since then, the LVC has never met its revenue targets.
“The 2012-13 ACT Budget stated the LVC would collect more than $26.4 million during 2014-15, this is a major underperformance raising less than half of the original estimate.
“This government tax is not working and the market has spoken. The LVC hurts businesses and it’s not even helping the government. It’s time Andrew Barr shows proper leadership and listens,” Mr Smyth concluded.