Canberrans are being slugged with more fees as the ACT government builds a thin surplus on the back of a huge tax take, Opposition leader Alistair Coe says.
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On Tuesday Chief Minister and Treasurer Andrew Barr unveiled the territory budget, featuring a 10 per cent rise in revenue from tax and rates and a $36 million surplus.
Canberra Liberals leader Alistair Coe said the budget fundamentally failed to address cost of living and housing affordability issues plaguing ACT residents.
“We are seeing Canberrans slugged with ever-increasing rates, taxes, fees and charges,” he said.
“While it is all very well for the government to celebrate a surplus on paper, the impact is quite stark on Canberra households.”
One of the most significant and unaddressed issues facing the territory was the lack of affordable land, Mr Coe said.
“The real symptom in Canberra is the cost of living and the huge cost of land. While a lot of people talk about housing affordability crisis, we have a land affordability crisis,” he said.
“This is a government that is gouging Canberrans by drip feeding the release of land, and driving up the prices so much, many Canberrans can’t afford to live in the city they grew up in.”
Mr Coe was also scathing of the government’s budgeted surplus.
“In reality, the government is bringing in huge revenue,” he said.
“And if you can’t get the books into the black with record revenue, when are you going to.”
Overall, the territory government's own-source revenue will increase 10 per cent, the biggest rise in three years, after a 6 per cent rise in 2017-18 and 4 per cent rise the previous year.
On a more positive note, Mr Coe welcomed previously-announced spending to pay for more police officers and emergency services staff in the territory.
ACT Greens leader Shane Rattenbury said the budget laid the groundwork for a big push on affordable housing later this year.
“These small surpluses going forward and the capital provision that is there, there is real room to make a significant investment in housing in the coming years,” Mr Rattenbury said.
“Minister [Yvette] Berry will release an affordable housing policy in coming months, and we expect to see that as the next major focus for the government.”
Greens assembly member Caroline Le Couteur said the budget delivered on the party’s policy commitments around transport, mental health, the environment and climate change.
“The ACT Greens have now spent a decade pushing for progressive policies, protesting bad policies, putting big issues on the agenda, bringing the community’s voices to the assembly, and securing better outcomes through our campaigns and through three parliamentary agreements,” she said.
“The Greens support is contingent on these policy achievements.”
The government is scrapping the first home buyer grant and abolishing stamp duty for new homebuyers from July next year, speeding up the broader 20-year tax reform for those buyers.
The Housing Industry Association said this was a good move.
“Completely exempting first home buyers below a defined income threshold from stamp duty is a positive move that will support housing affordability,” spokesman Greg Weller said.
“The negative impacts of stamp duty as a means of collecting revenue by governments are well documented and this move complements the ongoing phase out of the tax in favour of general rates in the ACT.”
