AVERAGE general rate increases for households and commercial properties will be capped at no more than 3.75 per cent following this financial year, according to Chief Minister Andrew Barr. 

The next stage of the ACT’s tax reform, from 2021-22, will continue to be lower than the first two phases of reform, says Mr Barr, who says their nation-leading tax reform is benefitting households and the local economy whilst remaining revenue neutral.

“Inefficient taxes such as conveyance duties are gradually being phased out, with revenue being replaced by increases in general rates,” Mr Barr says.

“The ACT is now the only jurisdiction in the country that doesn’t charge insurance duty. The ACT has the highest payroll tax free threshold in the country at $2m, with 90 per cent of Canberra businesses no longer paying it. Our stamp duty rates have fallen significantly to be the second lowest in the country. They will be the lowest in the country in the next phase of reform.”

However, the Canberra Liberals don’t think Canberrans are fooled by Mr Barr’s rates pitch, saying “after tripling rates and plunging families into housing stress, Canberrans aren’t fooled by ACT Labor’s desperate election pitch to downplay years and years of rates pain.”

“After setting the house on fire, Labor’s pathetic attempt to put it out with a garden hose isn’t fooling anyone,” says Canberra Liberals leader Alistair Coe, who has promised to freeze rates for four years if the Canberra Liberals form government in October.

Since 2011-12, rates have increased by about 10 per cent a year despite Labor’s desperate claim in 2012 that rates revenue would not triple, the record shows rates revenue has already more than doubled from $209 million in 2011-12 to $558 million in 2018-19, says Mr Coe. Rather than abolishing stamp duty, the territory is raking in more than ever before from stamp duty revenue, he says.