The ACT Greens support the tax reform move from stamp duty to rates, but we need to keep the rates system fair while tax reform continues over the next 10 to 20 years.
Rates are currently based on land value, not market value, so the value of the buildings and gardens are not included. It means that the least expensive house on a street will typically pay the same (or possibly even more) rates as the most expensive house.
We must ensure that the tax system is as fair and equitable as possible, for young people entering the market, older Canberrans on lower incomes, and the more vulnerable in our community.
That's why we want to hear from the community on a proposal we’ve developed to improve the fairness of our rates system. We are proposing changing how rates are assessed, from land value to property market values.
This system is widely used by local governments in Victoria, South Australia and New Zealand. Studies have shown that property market value is much more closely related to wealth than land value and so this proposal is all about increasing fairness.
Learn more from our discussion paper and send your feedback to LECOUTEUR@parliament.act.gov.au by 12 October 2018.