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CHAPTER 2

FISCAL STRATEGY

Chapter Page

2.1 Overview 37

2.2 Budget outlook 39

2.3 Fiscal strategy 45

2.4 Cost of living statement 53

2018-19 Budget Paper No. 3 35 Fiscal strategy

2.1 OVERVIEW

We are delivering on our commitment to return the ACT Budget to balance while investing in more frontline services today and better health, education and transport infrastructure to meet Canberra’s needs in the years to come.

Returning to balanceThe ACT Government has a clear fiscal strategy to balance the budget over the medium term.

Following the economic and fiscal shocks caused by the Global Financial Crisis, cuts to Commonwealth Government funding and jobs, and the implementation of the Loose-fill Asbestos Insulation Eradication Scheme, the Government ran temporary deficits to invest in Canberra.

We adopted this strategy to support our economy in the short to medium term, protect local jobs, and give businesses investment certainty during the tough times. The success of this strategy can be seen in the strong and broad-based economic growth the Territory has seen in the past few years, and the continued strength of our labour market.

The Government has consistently indicated that we would return to balance as the impact of those economic shocks dissipated. This Budget achieves that, with the Headline Net Operating Balance in 2018-19 forecast to be $36.5 million, an increase in comparison to the 2017-18 Budget Review forecast for 2018-19 of $11.1 million. The budget has also been returned to balance in each year of the forward estimates.

Maintaining a balanced budget across the forward estimates will ensure the costs of our investments in new and expanded services are met while keeping the ACT’s borrowings and debt at sustainable levels.

In 2018-19, net debt is estimated to be 4.9 per cent of Gross State Product, broadly consistent with debt in other AAA-rated jurisdictions with New South Wales at 1.5 per cent and Victoria at 5.4 per cent. Net debt is forecast to peak in 2020-21 at 6.0 per cent of Gross State Product, consistent with the Government’s investment program.

Delivering on our commitmentsThe ACT Government has already made significant progress in delivering on the commitments we made during the 2016 election. Key infrastructure projects such as the SPIRE Centre at the Canberra Hospital and new Walk in Centres are underway, while new services like green bins are rolling out across Canberra.

The 2018-19 Budget delivers on even more of our commitments to meet the needs of our growing city. We are investing to progress Stage 2 of Light Rail to Woden, deliver a new P-6 school at Molonglo and continue renewing Canberra’s city and town centres.

2018-19 Budget Paper No. 3 37 Overview

Our steady and responsible fiscal management has ensured we have the capacity to deliver on these commitments now and in the years to come.

2018-19 Budget Paper No. 3 38 Overview

2.2 BUDGET OUTLOOK

For 2018-19, the General Government Sector Headline Net Operating Balance has improved to $36.5 million. This strengthened fiscal position is mainly due to continued spending restraint on behalf of the ACT Government, and higher expected receipts including payments from the Commonwealth and dividend income.

Over the four years to 2021-22, the Government is forecasting a balanced position in all years – the first time since the Global Financial Crisis that this has been the case.

Net debt is forecast to be $2.1 billion as at 30 June 2019, and is anticipated to peak in 2020-21, consistent with the structure of the Government’s existing infrastructure program and the inclusion of the new capital initiatives being delivered through this Budget.

The context of the 2018-19 BudgetWith the growth prospects for the Territory’s economy remaining strong, the 2018-19 Budget delivers on more of our election commitments and steps up services to meet the needs of our growing city. These new initiatives are targeted to meet the needs of our community with a level of spending that is appropriate and sustainable in light of retaining our AAA credit rating, and keeping public debt at manageable levels.

Headline Net Operating Balance

The 2018-19 Budget forecasts the Territory’s headline net operating position will achieve balance in 2018-19, and maintain this across the forward estimates, as shown in Table 2.2.1.

Table 2.2.1: General Government Sector Headline Net Operating Balance

2017-18Est.

Outcome

2018-19Budget

2019-20Estimate

2020-21Estimate

2021-22Estimate

$’000 $’000 $’000 $’000 $’000Revenue 5,424,088 5,671,305 5,854,703 6,108,325 6,335,102Expenses -5,566,218 -5,818,171 -6,004,634 -6,290,286 -6,505,509Superannuation return adjustment 174,017 183,325 193,887 207,883 222,901HEADLINE NET OPERATING

BALANCE31,887 36,459 43,956 25,922 52,494

Net Cash from Operating Activities 476,159 435,667 425,072 592,955 645,704Net Debt (excluding

superannuation)1,357,024 2,108,347 2,627,736 2,894,703 2,834,947

Net Financial Liabilities 5,713,438 6,609,246 7,120,412 7,394,182 7,466,852

Note: Numbers may not add due to rounding.

2018-19 Budget Paper No. 3 39 Budget outlook

Table 2.2.2 provides an overview of the policy decisions and technical adjustments that have influenced the Headline Net Operating Balance since the 2017-18 Budget.

Table 2.2.2: Summary of movements in the General Government Sector Headline Net Operating Balance

2017-18 2018-19 2019-20 2020-21$’000 $’000 $’000 $’000

2017-18 Budget -83,409 9,793 27,928 63,272

Revenue1

Policy Decisions 29 -682 -450 -109Technical Adjustments 82,010 50,374 63,597 155,756Expenses2

Policy Decisions -19,945 -12,016 -16,273 -16,594Technical Adjustments -21,460 -43,059 -40,518 -129,493Superannuation return adjustment 1,231 6,722 6,141 6,568

2017-18 Budget Review -41,544 11,132 40,425 79,400

Revenue1

Policy Decisions 0 3,706 9,620 6,903Technical Adjustments -654 82,868 -13,588 -89,363Expenses2

Policy Decisions 0 -100,346 -95,099 -91,637Technical Adjustments3 72,821 42,765 107,436 125,818

Superannuation return adjustment 1,264 -3,666 -4,838 -5,199

2018-19 Budget 31,887 36,459 43,956 25,922

Notes: Numbers may not add due to rounding.1. A positive number represents an increase in revenue.2. A negative number represents an increase in expenses.3. This category includes the small number of expense initiatives that have components that are ‘Not For Publication’ to

ensure that these amounts cannot be determined.


Table 2.2.3 provides a summary of the major technical adjustments that have impacted the Headline Net Operating Balance since the 2017-18 Budget Review.

Table 2.2.3: Summary of major technical adjustments since the 2017-18 Budget Review

2017-18 2018-19 2019-20 2020-21$’000 $’000 $’000 $’000

Revenue1

National Health Reform Commonwealth grants 40,031 13,053 15,515 25,997GST revenue 22,084 15,085 9,362 13,081Large-scale Generation Certificates 6,157 4,310 -54,710 -110,165Superannuation Provision Account 0 -5,823 -6,264 -6,738Territory Banking Account -1,284 3,047 -3,594 5,474Other Commonwealth grants -12,187 9,046 5,478 5,090Taxation -15,458 -1,952 -531 8,017Suburban Land Agency, City Renewal Authority and

Icon Water dividend, income tax and contributed assets

-52,958 24,304 -13,951 -61,502

Other parameter and technical adjustments 12,961 21,798 35,107 31,383Total Revenue – Technical Adjustments -654 82,868 -13,588 -89,363

Expenses2

Revised funding profiles and rollovers 37,457 -34,899 -8,596 -3,475Large-scale Generation Certificates 34,400 72,143 127,620 60,331Other technical adjustments 964 5,521 -11,588 68,962Total Expenses – Technical Adjustments 72,821 42,765 107,436 125,818

Notes: Numbers may not add due to rounding.1. A positive number represents an increase in revenue.2. A negative number represents an increase in expenses.

RevenueThe Government is forecasting revenue of $5.7 billion in 2018-19, an increase of $82.9 million since the 2017-18 Budget Review. This higher revenue forecast reflects:

an increase in revenue associated with a variety of parameter and technical adjustments of $21.8 million, mainly due to revenue from forestry, increases to cross-border health receipts and fees for regulatory services;

an increase in income from the Suburban Land Agency and City Renewal Authority of $24.3 million in 2018-19 relating to the new Indicative Land Release Program as well as revisions to release settlement timings and revaluations of estate costs and revenues;

an increase of $15.1 million ($52.1 million over four years) in GST revenue as a result of an increase in the growth in overall receipts to the Commonwealth; and

an increase of $13.1 million ($99.2 million over four years) for National Health Reform Commonwealth grants.


Figure 2.2.1: Underlying revenue as at the 2017-18 Budget Review and as at the 2018-19 Budget

5,300

5,500

5,700

5,900

6,100

6,300

6,500

6,700

2017-18 2018-19 2019-20 2020-21 2021-22

$ m

illio

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2017-18 Budget Review 2018-19 Budget

ExpensesThe Government is forecasting expenses of $5.8 billion in 2018-19, an increase of $53.9 million since the 2017-18 Budget Review. This increase largely reflects:

the impact of Government policy decisions to meet the needs of our growing city ($100.3 million); and

the re-profiling and rollovers of agency expenses, including those associated with capital works ($34.9 million).

These increases are partially offset by a decrease in expenses associated with the Large-scale Generation Certificates ($72.1 million).

The most significant policy decisions taken by the Government include:

additional investment in health services ($205.4 million over four years) such as expanding the Hospital in the Home program, and delivering new funding for elective surgeries. The majority of these expenses will be offset by the Health Funding Envelope (see Expense Initiatives – Chapter 3 – for further details);

additional funding for student population growth and additional learning professionals to support educational needs ($31.1 million over four years);

further support for families and inclusion with new initiatives for the Commonwealth Redress Scheme for Institutional Child and Sexual Abuse, and better resourcing for the Alexander Maconochie Centre ($27.2 million over four years);

increased funding to support students with disability ($23.2 million over four years);


funding for the early planning for Light Rail Network 2 ($10.4 million over four years); and

better services for our suburbs ($10.0 million over four years).

Further information on policy decisions is provided in New Initiatives (Chapter 3).

Underlying expenses1 are forecast to grow at an annual average rate of 3.8 per cent, indicating an increase from the 2017-18 Budget.

Figure 2.2.2 depicts a comparison between the underlying expenses in the 2017-18 Budget Review and the 2018-19 Budget.

Figure 2.2.2: Underlying expenses as at the 2017-18 Budget Review and as at the 2018-19 Budget

5,300

5,500

5,700

5,900

6,100

6,300

6,500

6,700

2017-18 2018-19 2019-20 2020-21 2021-22

$ m

illio

n

2017-18 Budget Review 2018-19 Budget

Large-scale Generation CertificatesThe 2018-19 Budget reflects the expense and revenue impacts associated with the ACT’s Large-scale Generation Certificates. These are credits that are received for the generation of renewable electricity under the Commonwealth Government’s Large-scale Renewable Energy Target.

1 Underlying expenses exclude impacts associated with the Large-scale Generation Certificates.


The ACT receives Large-scale Generation Certificates from our large-scale feed-in tariff supported renewable electricity generation projects to meet its target of 100 per cent renewable electricity by 2020. One certificate is equal to the generation of one megawatt hour (MWh) of renewable electricity.

Once created and recognised, these certificates can be sold and transferred to other individuals and businesses. The price of certificates is determined through the open Large-scale Generation Certificates market, where these can be traded, bought and sold.

The ACT Government began accounting for our Large-scale Generation Certificates holdings in last year’s Budget. As at 30 June 2018, the ACT Government will have accumulated approximately 900,000 Large-scale Generation Certificates.

Accounting practice is to record the certificates as revenue at market value upon receipt in the financial year in which they are created and recognised. Government policy is to voluntarily surrender these certificates to the Clean Energy Regulator and, in accordance with current accounting practices, an equivalent expense would be recorded.

Given the recent developments in the national electricity market and significant uncertainty associated with the Commonwealth negotiations on the National Energy Guarantee, the Government has deferred the surrender of its Large-scale Generation Certificates until 2020-21. While it remains Government policy that the default position will see the certificates voluntarily surrendered, this will occur following the Government’s consideration of the circumstances prevailing at the time.

The 2018-19 Budget therefore includes revalued current and estimated future holdings of Large-scale Generation Certificates.


2.3 FISCAL STRATEGY

In managing the ACT Budget, the Government works to a fiscal strategy which has three core objectives:

strengthening the ACT economy, with a particular focus on creating good jobs and continuing to deliver high quality services to the community;

continuing to invest in infrastructure projects and assets that generate economic growth and protect Canberra’s liveability as our city grows; and

sustaining a strong operating balance over the medium term, offsetting temporary deficits with surpluses in other periods.

To implement this strategy, our fiscal policy focuses on delivering sustainable economic growth, quality and efficient services and sustainable taxation and revenue, while maintaining sound public finances and a strong balance sheet.

Sustainable economic growthThe Government is actively pursuing opportunities to expand investment in the Territory and diversify our economic base by promoting Canberra both locally and internationally, pursuing new partnerships across a wide range of industries, and making it easier for local businesses to establish themselves and thrive.

This strategy – and our previous investments in economic development and diversification – are clearly paying off. Employment in the ACT grew by 2.7 per cent in the 12 months to April 2018, with 6,000 new jobs being created across the economy.

Our Gross State Product grew by 4.6 per cent in 2016-17, significantly exceeding the 2.1 per cent Gross Domestic Product growth seen across Australia.

Our tourism industry is booming, both in terms of visitors to our city and the number of jobs this growing sector is generating. One in seven new jobs created in the Territory has been in the tourism sector, outpacing overall employment growth. Tourism’s contribution to the ACT’s Gross State Product grew by 9.5 per cent between 2015-16 and 2016-17. With the Government pursuing more international carriers and flight routes, this will continue to strengthen. The ACT recently welcomed our newest carrier, Qatar Airways, which commenced daily services from Canberra Airport in mid-February 2018. Singapore Airlines also launched daily flights direct to Singapore in May 2018, bringing even more visitors to our city.


The number of international visitors to Canberra continues to grow, with a 16.9 per cent increase recorded in the past year, adding an extra $105.5 million to the local economy. This reflects the Government’s work in promoting Canberra to the international tourism market through VisitCanberra’s activities, including trade events and cooperative campaigns with online travel agents and airlines. We are particularly strengthening links with China and New Zealand – China remains a top tourism market for Canberra, and the Government is seeking out opportunities to re-establish a direct air link to Wellington. The Wellington link remains important from both tourism and trade perspectives, as flights through New Zealand allow improved access to destinations in North America.

In 2016-17, the largest contributor to growth in ACT services exports was education exports (up 24.4 per cent). This is the highest growth rate of any State or Territory. Over the past five years, ACT education exports have increased by 79.5 per cent, compared with education exports increasing by 63.4 per cent nationally. This reflects a growing number of international students choosing to study in Canberra.

An emerging example of the Government’s efforts to diversify our economic base is the recent release of the Transition to Zero Emissions Vehicles Action Plan 2018-2021. This plan will not only promote sustainability through the use of zero emissions vehicles, but will also position Canberra as a hub for innovation and industry collaboration on clean vehicle technology as this sector continues to grow. This builds on our efforts to put Canberra at the centre of renewable energy innovation and policy leadership, and will create further opportunities for local firms as well as more good jobs.

Quality and efficient servicesThe Government is committed to delivering high quality public services that meet the needs of Canberrans now and in the years to come.

The 2018-19 Budget will step up our investment in frontline services in our hospitals, schools and suburbs, as well as boosting key transport infrastructure to meet our city’s future needs. These significant new investments are detailed in New Initiatives (Chapter 3).

Our new investments come on top of the ACT Government’s delivery of our ongoing services and programs, which are consistently among the best in the country. For example, the Report on Government Services 2018, progressively released by the Productivity Commission between 23 January and 1 February 2018, shows that the ACT continues to deliver high quality government services:

the ACT Fire & Rescue Service has the fastest structure fire response time in the country;

we ranked highest nationally on feelings of safety at home (ACT: 90.6 per cent, nationally: 86.1 per cent) and on public transport at night (ACT: 64.5 per cent, nationally: 56 per cent);

the proportion of patients on waiting lists with extended waiting times decreased substantially over all clinically urgent categories (27.5 per cent in 2014-15 to 8.2 per cent in 2016-17);


our number of hospital beds per 100,000 people is above the national average;

the performance of our Year 7 students in reading was the highest nationally for the eighth consecutive year, and the performance of our Year 9 students was the highest nationally for the tenth consecutive year;

ourstudent to teacher ratio is better than the national average;

our retention rate for students transitioning from Year 10 to Year 12 was 94 per cent, compared to 85 per cent nationally; and

we have the highest proportion (99.4 per cent) of Aboriginal and Torres Strait Islander vocational education and training graduates in employment and/or continuing on to further study after completing a course (17.3 per cent above average).

Sustainable taxation and revenueThe Government’s taxation reform program is designed to ensure taxation revenue remains at sustainable levels while also making the taxation system fairer, simpler and more efficient.

The reform program is shifting the tax mix away from narrowly-based transaction taxes to a broad land tax base through general rates. Insurance duties were fully abolished from 1 July 2016 and conveyance duty is being phased out over a 20-year period. The reform program is broadly revenue neutral with the reductions in revenue from abolishing insurance duty and phasing out conveyance duty being replaced through incremental increases in general rates. This will secure a stable and efficient revenue base to fund the provision of high-quality government services into the future.

In 2018-19 and across the forward estimates, residential conveyance duty rates will continue to reduce across all property price values. This means that by 2021-22 the buyer of a residential property priced at $500,000 will save $10,500 in conveyance duty compared to before the reform program commenced in 2012-13, a reduction of around 51 per cent.

From 1 July 2018, conveyance duty for commercial property transactions worth $1.5 million and below will be fully phased out. As a result, around 70 per cent of commercial property transactions will no longer be liable to pay duty.

The ACT remains a relatively low taxing jurisdiction. Our own-source tax revenue as a share of Gross State Product is the third lowest of all jurisdictions in Australia and well below the average of 5.7 per cent.


Figure 2.3.1: Comparison of own-source tax revenue as a share of Gross State Product, total state and local government, 2016-17

4.4%

6.2%6.5%

5.1%

5.7%

4.3%

5.0%

2.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

ACT NSW VIC QLD SA WA TAS NT

Ow

n-So

urce

Tax

Rev

enue

as a

shar

e of

Nom

inal

GS

P

Sources: ABS 5506.0, 5220.0.Notes:1. Gross State Product is in nominal terms. 2. This comparison is made on the basis of total state and local government own-source tax revenue. The ACT

undertakes both state and local functions.

Details of the revenue initiatives announced in the 2018-19 Budget can be found in Revenue initiatives (Chapter 3.4).

Sound public finances

Headline Net Operating Balance

The foundation of the Government’s fiscal strategy is to achieve a net operating balance over the medium term. This strategy provides the flexibility to support the economy and jobs when needed, while ensuring underlying fiscal sustainability.

In 2018-19, the forecast Headline Net Operating Balance has improved since the 2017-18 Budget Review by $25.4 million to $36.5 million.

In line with the Government’s consistent trajectory since 2015, the forecast Headline Net Operating Balance will be in balance in 2018-19 and maintained across the forward estimates.

Figure 2.3.2 shows the history of the Territory’s Headline Net Operating Balance movements.


Figure 2.3.2: Headline Net Operating Balance

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2001

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EstimateActual

Commonwealth Reduction in Stimulus

2012-14

Asbestos Eradication

Scheme

Cut in Health/GST

Funding

Commonwealth Stimulus 2009-11

Global Financial

Crisis

The Territory’s credit rating

International ratings agency Standard & Poor’s reaffirmed the ACT’s AAA long-term and A-1+ short-term local currency credit ratings on 30 August 2017.

Consistent with the Commonwealth Government’s negative ratings outlook, Standard & Poor’s maintains a negative outlook on the ACT Government’s credit rating. The ratings agency remains of the view that no State or Territory in Australia can maintain stronger credit characteristics than a sovereign in a stress scenario.

The AAA and A-1+ ratings held by the Territory are the highest ratings assigned by Standard & Poor’s. The ACT is one of only three State or Territory Governments in Australia – and a small number of governments around the world – to hold this rating.

In its most recent assessment, Standard & Poor’s indicated that the ACT’s financial management compares favourably to its domestic and international peers. The ratings agency noted that the Government had successfully addressed a number of challenges over recent years, including the Commonwealth Government’s fiscal consolidation efforts and the substantial costs associated with the Loose-fill Asbestos Insulation Eradication Scheme.

Standard & Poor’s further stated that the ACT’s strong fiscal management would allow the Government to successfully deliver its infrastructure plans, including Public Private Partnerships and the Asbestos Eradication Scheme, while containing debt levels. The ratings agency also noted that the Government’s tax reform plan to phase out stamp duty and replace this with a broad-based land tax levied through general rates would support the ACT’s budget position now and into the future by providing a more stable revenue base.


Operating cash balance

The operating cash balance measures all operating cash receipts each year – for example taxes, fees and fines, and operating grants from the Commonwealth Government – less all operating cash payments – including wages and salaries, cash superannuation payments and payments for goods and services.

The Government is committed to maintaining operating cash surpluses in the General Government Sector on the basis that a strong operating cash balance ensures there is sufficient cash generated from operating activities to contribute to our ongoing investment in key infrastructure to support the city’s growth.

The General Government Sector net operating cash balance is forecast to be in surplus in all years at $435.7 million in 2018-19, increasing to $645.7 million in 2021-22.

A strong balance sheetThe ACT’s balance sheet continues to perform relatively well compared to other jurisdictions. This means the Government has the flexibility to deliver the high priority investments in hospital, school and transport infrastructure Canberra will need in the future.

Net debt

A key balance sheet measure in the Government Finance Statistics framework is net debt, which takes into account gross debt liabilities as well as financial assets such as cash reserves and investments.

General Government Sector net debt is estimated to be $2.1 billion, or 4.9 per cent of Gross State Product in 2018-19. This compares with the 2017-18 estimated outcome of $1.4 billion, or 3.3 per cent of Gross State Product. The increase in net debt as a percentage of Gross State Product in 2018-19 is influenced by the inclusion of lease liabilities associated with Public Private Partnerships.

Net debt in 2019-20 and 2020-21 is forecast to increase compared to the 2017-18 Budget Review, largely due to the impact of policy initiatives and the inclusion of capital provisions in the forward estimates, relating to the Government’s investments in transport and health infrastructure.

Net financial liabilities

Net financial liabilities represents total liabilities less financial assets such as cash reserves and investments. They take into account all non-equity financial assets, but exclude the value of equity held by the General Government Sector in public corporations.


The net financial liabilities to Gross State Product ratio in 2017-18 has increased from 12.7 per cent to 14.0 per cent compared to the 2017-18 Budget. This is mainly due to an increase in the superannuation liability based on the latest Commonwealth Superannuation Scheme and Public Superannuation Scheme defined benefit actuarial review using salary and membership data at 30 June 2017. Variations between the 2017-18 Budget, the 2017-18 estimated outcome and the 2018-19 Budget are mainly due to the discount rate applied to value the defined benefit superannuation liability, and the results from the latest triennial actuarial review which uses salary and membership data as at 30 June 2017.

In 2018-19, net financial liabilities are forecast to increase by $895.8 million to $6.6 billion, largely reflective of forecast growth in the superannuation liability and the inclusion of lease liabilities associated with Public Private Partnerships.

Figure 2.3.3 below compares the ACT’s net financial liabilities as a proportion of Gross State Product with other jurisdictions. The ACT remains broadly in line with the other AAA-rated jurisdictions, New South Wales and Victoria.

Figure 2.3.3: General Government Sector net financial liabilities as a percentage of Gross State Product – 2018-19 State and Territory comparison

15.3

11.712.8

11.0

18.7

15.0

19.7

28.7

0

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10

15

20

25

30

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ACT2018-19Budget

AAA

New SouthWales

2017-18Half-Yearly

Review

AAA

Victoria2018-19Budget

AAA

Queensland2017-18Mid-YearFiscal andEconomic

Review

AA+

SouthAustralia2017-18Mid-YearBudgetReview

AA

WesternAustralia2018-19Budget

AA+

Tasmania2017-18Revised

EstimatesReport

AA+

NorthernTerritory2018-19Budget

Strategyand

OutlookAA

Per c

ent

Governments with strong balance sheets can responsibly incur a level of debt if it finances high quality assets in areas of community need. Assets such as public transport, new roads, schools and hospital facilities generate benefits to the community over many years. It is important, however, that the level of debt remains sustainable.

An indicator of that assessment is the ratio of net financial liabilities to Gross State Product. While this ratio is subject to volatility, it is desirable that it remains broadly stable over time.


Continuing to invest in infrastructure, using debt funding as required, will strengthen the ACT economy and enhance service delivery for Canberrans. The Government’s significant investments in such new infrastructure is a major driver in the level of net financial liabilities as shown below at Figure 2.3.4.

Figure 2.3.4: General Government Sector net financial liabilities

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Net financial liabilities Net financial liabilities to GSP ratio (RHS)

Net worth

The broadest measure of a jurisdiction’s balance sheet is net worth, which measures the total value of all assets less all liabilities. The ACT has positive net worth and, as a proportion of Gross State Product, continues to be one of the strongest when measured against other Australian jurisdictions.

Net worth is forecast to be $17.6 billion at the end of 2018-19, broadly in line with the 2017-18 estimated outcome of $17.3 billion.


2.4 COST OF LIVING STATEMENT

Canberrans are among the healthiest, wealthiest and best educated people in the country. But the ACT Government understands there are some in our community who are struggling with insecure or insufficient work, access to affordable and appropriate housing, and cost of living pressures. That is why we provide direct support to low and fixed-income households through our Concessions Program.

The ACT Government provides a wide range of concessions to households and individuals to assist with living expenses such as general rates, utility bills, driver licence fees, motor vehicle registration fees, and public transport fares.

Table 2.4.1 below shows a summary of assistance available and the estimated costs per annum. This is expected to increase in 2018-19 primarily as a result of the $50 increase in the Utilities Concession announced in the 2017-18 Budget Review.

Table 2.4.1 Summary of assistance available and estimated costs of annual take up in 2017-18 and 2018-19

Assistance Description Estimated annual take up1

2017-18$'000

2018-19$'000

General rates and Fire and Emergency Services Levy rebate

50 per cent rebate of annual rates bill up to $700, $98 rebate on FESL.

15,100 households 10,593 10,863

Spectacles scheme Subsidy up to $200 once every two years.

10,400 spectacles 2,190 2,260

Taxi Subsidy scheme Assistance for people with a disability or significant mobility restriction.

98,500 trips 1,720 1,775

Motor Vehicle Registrations

Discounts on motor vehicle registration and driver licences.

41,100 vehicles 4,208 4,492

Driver Licence concessions

100 per cent fee discount on driver licences.

31,800 licences 864 707

Public Transport concessions

Reduced or free fares on ACTION bus services.

6,801,200 trips 8,314 8,522

Utilities concessions $654 per annum towards utility bill.

32,200 households 26,082 28,376

First Home Owner Grant

$7,000 grant per household. 1,300 households 8,790 8,776

Conveyance duty concessions

Up to 100 per cent discount on conveyance duty payable.

1,400 households 10,2002 9,8002

Total 72,961 75,571

Note: 1. Around 13 per cent of homeowners receive a general rates and Fire and Emergency Services Levy rebate; 16 per cent

of passenger vehicles and nine per cent of driver licences receive a concession; 20 per cent of households receive the Utilities Concession; nine per cent of property transactions benefit from the First Home Owner Grant and 10 per cent of transactions benefit from a conveyance duty concession (due to different eligibility criteria).

2. Estimated revenue foregone.

2018-19 Budget Paper No. 3 53 Cost of living statement

Further information about assistance available and eligibility is at www.assistance.act.gov.au.

This Cost of Living Statement provides six case studies of Canberra households. It outlines the effect of the ACT Government’s taxes and charges, and the various concessions available in 2018-19.2 The impact of Commonwealth Government taxes, fees and concessions are not taken into account. The Government continues to monitor the impact of these other costs of living and concessions when setting our policies. A range of Commonwealth concessions and assistance programs are also available to offset eligible households’ living costs. However, these payments have not been included in the tables that follow.

While the Government is committed to supporting families and individuals through targeted assistance and concessions, there are a range of cost of living pressures the ACT Government does not control. Examples include changes to interest rates, petrol prices, and decisions of independent pricing authorities on the price of utilities such as electricity, water and sewerage.

ACT HouseholdsACT residents are younger on average than across Australia. As at August 2016, 57 per cent of the ACT’s population were under 40, compared with 53 per cent for Australia. At the 2016 Census, local families had an average of 1.8 children and 48 per cent of Canberrans were married.3

Canberrans are more engaged with the labour market than average Australians – our workforce participation rate is 71.3 per cent compared with 65.6 per cent nationally. Of those employed, 74 per cent are working full-time and 26 per cent are working part-time.4

At the 2016 Census, median weekly household income for ACT families was $2,445 compared with $1,7345 for the rest of Australia. The Wage Price Index in the ACT increased by 2 per cent through the year to March 2018. The national change for the same period was 2.1 per cent.6

The majority of households (65.4 per cent) own their own home, with or without a mortgage, while 31.8 per cent of households rent. The vast majority (92.1 per cent) of households own at least one motor vehicle.7

ACT Government public servicesThe ACT Government continues to provide high quality public services across the Territory. Government expenditure on health services has increased by around 7.6 per cent per year

2 As required under Section 11(1)(f) of the Financial Management Act 1996.3 2016 Census Australian Capital Territory STE QuickStats.4 Labour Force — April 2018, Australian Bureau of Statistics Cat. No. 6202.0.5 2016 Census Australian Capital Territory STE QuickStats.6 Wage Price Index — December quarter 2017, Australian Bureau of Statistics Cat. No. 6345.0.7 2016 Census Australian Capital Territory STE QuickStats.


over the decade to 201617, and spending on education grew by 6.5 per cent per year over the same period.8

Table 2.4.2: What your money delivers

Area of Expenditure in 2018-19 $ million % of total $ perhousehold

Health 1,685.8 30 10,394 Education 1,261.4 23 7,777 Justice and safety 583.3 11 3,596 Disability, community services and housing 539.0 10 3,323 City services 381.4 7 2,352 Public transport 258.6 5 1,594 Delivering government services 179.3 3 1,105 Environment, sustainability and land management 172.0 3 1,060 Economic and financial stewardship 168.8 3 1,041 Planning and regulation 157.1 3 969 Events, tourism and investment 141.0 3 7,777 Total 5,527.6 100 34,081

Source: Chief Minister, Treasury and Economic Development Directorate.Note: Numbers may not add due to rounding. Expenses by key priority area above do not equal total general government sector expenses as they do not include superannuation and other expenses that do not directly correlate to specific functions.

ACT Government taxes and feesThe ACT Government collects revenue directly via taxes and fees. This revenue is used to support the provision of high quality services and infrastructure to the community as detailed throughout the budget papers. About 33 per cent of ACT Government revenue is derived from ownsource taxation, about 24 per cent is the ACT’s share of the GST and another 17 per cent is provided by the Commonwealth Government through Specific Purpose Payments, National Partnership Payments and other General Revenue Assistance.

The most recent Australian Bureau of Statistics data show average taxation per capita in the ACT is around the national average and below that of New South Wales, Victoria and Western Australia. As a share of Gross State Product, the ACT collects the third lowest amount of tax (See Figure 2.3.1 in Chapter 2.3) among jurisdictions.

8 Government Finance Statistics 2016-17, Australian Bureau of Statistics Cat. No. 5512.0.


Utilities

The cost of gas, electricity and other utilities is largely outside the direct control of the ACT Government, as it is determined by the decisions of independent pricing tribunals and market forces. Utility charges incorporate the costs of production, the impact of various Commonwealth, State and Territory energy and environmental programs, taxes and charges, and international and domestic markets.

Water and sewerage charges are determined by the Independent Competition and Regulatory Commission (ICRC). The ICRC also regulates the price for the supply of electricity to small customers in the ACT purchased from ActewAGL Retail on certain contracts. Natural gas prices are not regulated in the ACT.

The cost of electricity is expected to increase in 2018-19, although not to the same degree as last year. The increases in retail electricity prices in recent years have been largely driven by substantial increases in wholesale electricity costs in the National Electricity Market. Other drivers can include the cost of renewable energy schemes, energy losses and network costs.

Cost of living statementUnder Section 11(1)(f) of the Financial Management Act 1996, the Territory provides a statement on the effect of Territory taxes and fees on households and the concessions that offset these taxes and fees.

The Government is mindful that, in calculating the impact of taxes, fees and utility charges on a hypothetical household, it is not possible to capture the full range of household types, financial circumstances or specific usage patterns of government services. Six household scenarios are presented as a basis for highlighting the differential impact for various household types and circumstances.

ACT household scenariosThe scenarios below show the estimated impact of Territory taxes, fees and utility charges and the concessions which offset them, on six households. Some other potential savings, which can reduce cost of living pressures, are also outlined. Further details on the costs and assumptions are provided in the notes later in this chapter.

Christine and Robert

Christine and Robert are a single income family renting in Monash. They have a household income of $65,000 a year and access to Centrelink Health Care cards. Their daughter, Chloe, has a disability and the family currently receives support through the Community Services Directorate, their local school and other community organisations. Chloe has joined the National Disability Insurance Scheme (NDIS), which commenced in the ACT on 1 July 2014.


The NDIS funds reasonable and necessary supports including therapies, equipment and home modifications, through a tailored plan of support.

Table 2.4.3 below shows the costs of taxes, fees and charges, net of concessions, and the change from 2017-18 to 2018-19 for Christine and Robert.

Table 2.4.3 Estimated impact of territory taxes and fees, and utility charges in 2018-19 on Christine and Robert.

Government Taxes, Fees and Utility Charges

Cost net ofconcessions

Savings Cost Value ofconcessions


2017-18 to201819

Savings

2017-18 2017-18 2018-19 2018-19 2018-19 change 2018-19$ $ $ $ $ $ $

Transport

FeesDriver licence fee,

vehicle registration, road rescue fee, road safety contribution, CTP insurance, CTP regulator levy, lifetime care and support levy and ACTION fares

1,730 2,488 1,763 33

ConcessionsACTION fares -725Savings Reduction from

Rewards for Safe Driving

-9 -11

Utilities FeesElectricity, natural gas 3,594 4,585 3,931 337ConcessionsUtilities Concession -654

Source: Chief Minister, Treasury and Economic Development Directorate.

Amali and Sundeep

Amali and Sundeep are currently renting in Gungahlin and will buy their first home together in Bonner in 2018-19. They will become liable for general rates and other property taxes when they purchase a house, as shown in the table below. Their household income is $120,000. As they plan to buy an established property near to where Amali’s parents live, they will not be eligible for any concessions, but they will be able to defer the payment of their conveyance duty. If they wait until 2019-20 to buy their home, they will pay no conveyance duty once the Government has abolished this for eligible first home buyers.


Amali works full-time and Sundeep works part-time while studying. Amali catches the bus to work to save on parking costs. Sundeep cycles to work and university most days. Table 2.4.4 below shows the costs of taxes, fees and charges, net of concessions, and the change from 2017-18 to 2018-19 for Amali and Sundeep. For comparison purposes, general rates for the house they will buy are included for 2017-18.

Table 2.4.4 Estimated impact of territory taxes and fees, and utility charges in 2018-19 on Amali and Sundeep.





2017-18 to201819

Savings

2017-18 2017-18 2018-19 2018-19 2018-19 change 2018-19$ $ $ $ $ $ $

PropertyTaxesGeneral Rates 1,534 1,693 1,693 159Fire and Emergency

Services Levy294 336 336 42

Safer Families Levy 30 30 30 0Conveyance duty 8,860 N/A1 -Transport FeesDriver licence fee,


2,474 2,526 2,526 52

Savings Reduction from


-18 -23

Utilities FeesElectricity, natural gas,

water and sewerage4,662 4,963 4,963 301

Note:1. Amali and Sundeep pay no conveyance duty in 2018-19, as they choose to defer it.Source: Chief Minister, Treasury and Economic Development Directorate.

Stephen and Michael

Stephen and Michael live in their own home in Waramanga and both receive a full pension. Both are over 70 years old and are eligible for free travel on ACTION buses. Michael catches the bus to Woden most weekdays to volunteer, and twice a week they drive to local community-run seniors’ groups.

If they downsize their home in 2018-19, they can access the Pensioner Duty Concession Scheme, saving $7,780 in conveyance duty, based on a purchase price of $380,000.


Table 2.4.5 below shows the costs of taxes, fees and charges net of concessions and the change from 2017-18 to 2018-19 for Stephen and Michael.

Table 2.4.5 Estimated impact of territory taxes and fees, and utility charges in 2018-19 on Stephen and Michael.





2017-18 to201819

Savings

2017-18 2017-18 2018-19 2018-19 2018-19 change 2018-19$ $ $ $ $ $ $

PropertyTaxesGeneral Rates 1,472 2,271 1,571 99Fire and Emergency

Services Levy196 336 238 42

Safer Families Levy 30 30 30 0ConcessionsGeneral Rates, Fire and

Emergency Services Levy

-798

Transport FeesDriver licence fee,


621 2,488 616 -5

Concessions Driver licence fees,

vehicle registration and ACTION fares

-1,872

Utilities FeesElectricity, water and

sewerage2,384 3,186 2,532 148

ConcessionsUtilities Concession -654Other concessions

potentially availableSpectacles Subsidy

Scheme-200 -200

Pensioner duty concession scheme

-7,780 0



Johan and Dewi

Johan and Dewi live in Kaleen. They have an annual household income of $156,000, own their own home and both work full-time. They have two children, Olivia in primary school and Noah in high school. They share school drop offs for Olivia, and Noah catches the bus to school. Most days, one of them catches the bus to work and the other drives their family sedan.

Johan and Dewi have been planning on purchasing a new house. Based on a purchase price of $650,000, they would have paid $19,970 in conveyance duty in 2017-18 but will pay $1,030 less in 2018-19. Conveyance duty at pre-tax reform rates would have been $29,125, which is $10,185 more than they will pay in 2018-19.

Table 2.4.6 below shows the costs of taxes, fees and charges net of concessions and the change from 2017-18 to 2018-19 for Johan, Dewi and their family.

Table 2.4.6 Estimated impact of territory taxes and fees, and utility charges in 2018-19 on Johan and Dewi.





2017-18 to

201819

Savings

2017-18 2017-18 2018-19 2018-19 2018-19 change 2018-19$ $ $ $ $ $ $

PropertyTaxesGeneral Rates 2,156 2,334 2,334 178Fire and Emergency Services

Levy294 336 336 42

Safer Families Levy 30 30 30 0Transport FeesDriver licence fee, vehicle

registration, road rescue fee, road safety contribution, CTP insurance, CTP regulator levy, lifetime care and support levy and ACTION fares and parking

5,452 5,676 5,676 2241

Savings Reduction from Rewards for

Safe Driving-18 -23

Utilities FeesElectricity, natural gas, water

and sewerage6,144 6,531 6,531 387

Other concessions potentially available

Conveyance Duty 18,940 -1,030

Note: 1. The increase to transport costs for this family is primarily due to increased parking fees.Source: Chief Minister, Treasury and Economic Development Directorate.


Mary

Mary is an aged pensioner living in public housing in Narrabundah, who pays 25 per cent of her income in rent. The indicative market rent for a one bedroom unit in this area is around $17,680 a year.

She uses the bus at a full concessional rate and participates in a range of community programs to interact with other members of the community.

Table 2.4.7 below shows the costs of taxes, fees and charges net of concessions and the change from 2017-18 to 2018-19 for Mary.

Table 2.4.7 Estimated impact of territory taxes and fees, and utility charges in 2018-19 on Mary.





2017-18 to

201819

Savings

2017-18 2017-18 2018-19 2018-19 2018-19 change 2018-19$ $ $ $ $ $ $

PropertyRent25% of pension 5,774 5,900 5,900 126SavingsDifference to market

rent-11,391 -11,780

Transport FeesACTION fares 0 1,449 0 0ConcessionsACTION fares -1,449Utilities FeesElectricity 987 1,782 1,128 141ConcessionsUtilities Concession -654


Peter

Peter is a 61 year old self-funded retiree who receives a defined benefits pension. He lives in a townhouse in Garran and has an income of around $55,000. Previously, Peter was unable to defer general rates because the unimproved value of his townhouse ($137,700 in 2018-19) did not meet the eligibility criteria for the General Rates Aged Deferral Scheme. Under the new criteria introduced in 2018-19, Peter is now able to defer the payment of general rates until his home is sold. Peter drives his car as his primary form of transport and garages it in the basement carpark of his townhouse.

Table 2.4.8 below shows the costs of taxes, fees and charges net of concessions and the change from 2017-18 to 2018-19 for Peter.


Table 2.4.8 Estimated impact of territory taxes and fees, and utility charges in 2018-19 on Peter.





2017-18 to201819

Savings

2017-18 2017-18 2018-19 2018-19 2018-19 change 2018-19$ $ $ $ $ $ $

PropertyTaxesGeneral Rates 1,394 1,527 N/A1

Fire and Emergency Services Levy

294 336 336 42

Safer Families Levy 30 30 30 0Transport FeesDriver licence fee,

vehicle registration, road rescue fee, road safety contribution, CTP insurance, CTP regulator levy, and lifetime care and support levy

1,024 1,039 1,039 15

Savings Reduction from


-9 -11

Utilities FeesElectricity, water and

sewerage2,568 2,737 2,737 169

Note: 1. Peter pays no general rates in 2018-19, as he chooses to defer them. Rates owing are charged a 1.75 per cent interest

rate.Source: Chief Minister, Treasury and Economic Development Directorate.

TABLE NOTES

ACT household scenarios

Figures in the household scenario tables and in the notes below are rounded to the nearest dollar, except for the Road Rescue Fee, Road Safety Contribution, and Lifetime Care and Support Levy.

Property

Consistent with the 2017-18 Budget, general rates have been calculated as the average general rates bill in the relevant suburb for each household, rather than based on a fixed Average Unimproved Value (AUV).


Transport

Driver licence fees have been calculated by dividing the cost of a five-year driver licence ($190) by five to determine the annual cost. For 2018-19, drivers are assumed to receive the 30 per cent Rewards for Safe Driving discount. This discount is available to drivers who have no relevant traffic offences recorded for the previous five years.

For Compulsory Third Party (CTP) insurance, an average of the four providers in the market (NRMA, APIA, GIO and AAMI) has been used ($550).

The calculations for ACTION bus fares assume passengers are using a MyWay card. Further discounts are available for passengers who top up their MyWay card using autoload (direct debit) or BPAY.

Utilities

2018-19 water and sewerage prices are based on the final determination made by the ICRC.

Retail electricity costs are assumed to increase by around 12 per cent in 2018-19, based on data from the Australian Energy Markets Commission and wholesale market price movements. Actual price increases for regulated retail electricity tariffs offered by ActewAGL Retail will be announced before 1 July 2018, following the ICRC’s decision, which is expected by mid-June.

Retail gas prices are not regulated in the Territory. Treasury estimates natural gas prices will increase by around six per cent in 2018-19, based on analysis of data from the Australian Competition and Consumer Commission, the Australian Energy Regulator and the Commonwealth Department of the Environment and Energy. Actual price increases in the ACT are usually announced by gas retailers before 1 July.

Christine and Robert

Property

As the family is renting, they do not pay general rates, the Fire and Emergency Services Levy or the Safer Families Levy.

Transport

For 2018-19, transport fees comprise: one driver licence fee ($38); vehicle registration ($385); Road Rescue Fee ($26.40); Road Safety Contribution ($2.50); CTP insurance ($550); the CTP Regulator Levy ($1); the Lifetime Care and Support Levy ($36.50); and ACTION fares ($1,449).

For 2018-19, concessions comprise ACTION’s concession fare ($725). The driver is eligible for a discount on the cost of his driver licence under the Rewards for Safe Driving Program ($11).


Assumptions

Fees are calculated on a vehicle with a tare weight of 1,155 kg to 1,504 kg. The Centrelink Healthcare Card provides access to ACTION’s concession fare, with travel twice a day at peak time five days a week, reaching the monthly travelling cap of 40 trips. Once the monthly cap is reached, passengers’ remaining travel will be free of charge provided they continue to tag on and off with each journey.

Utilities

For 2018-19, utility charges comprise: electricity ($2,513) and natural gas ($2,072). Concessions comprise of the combined Utilities Concession ($654).

Assumptions

Consumption per year: electricity (8,700 kWh) and natural gas (51 GJ). No water or sewerage charges have been included as the family is renting and it is assumed that these charges are incorporated into weekly rent payments.

Amali and Sundeep

Property

For 2018-19, property fees comprise: general rates ($1,693); the Fire and Emergency Services Levy ($336); and the Safer Families Levy ($30). They will pay $8,860 in conveyance duty on the purchase of their $410,000 established house in 2018-19.

Transport

For 2018-19, transport fees comprise: driver licence fee ($76); vehicle registration ($385); Road Rescue Fee ($26.40); Road Safety Contribution ($2.50); CTP insurance ($550); the CTP Regulator Levy ($1); the Lifetime Care and Support Levy ($36.50); and ACTION fares ($1,449).

For 2018-19, both drivers are eligible for a discount on the cost of their driver licences under the Rewards for Safe Driving Program ($23).

Assumptions

Fees are calculated based on two drivers and one car with a vehicle tare weight of 1,155 kg to 1,504 kg. ACTION fares are calculated as travel twice a day at peak time five days a week, reaching the monthly travelling cap of 40 trips. Once the monthly cap is reached, passengers’ remaining travel will be free of charge provided they continue to tag on and off with each journey.

Utilities

For 2018-19, utility charges comprise: electricity ($2,148); natural gas ($1,775); water ($509); and sewerage ($531).


Assumptions

Consumption per year: electricity (7,200 kWh); natural gas (42 GJ); and water (160 kL).

Stephen and Michael

Property

For 2018-19, property fees comprise: general rates ($2,271); the Fire and Emergency Services Levy ($336); and the Safer Families Levy ($30). Concessions consist of the rates rebate ($700) and the Fire and Emergency Services Levy rebate ($98).

Transport

For 2018-19, transport fees comprise: driver licence fee ($38); vehicle registration ($385); Road Rescue Fee ($26.40); Road Safety Contribution ($2.50); CTP insurance ($550); the CTP Regulator Levy ($1); the Lifetime Care and Support Levy ($36.50); and ACTION fares ($1,449).

For 2018-19, concessions comprise: driver licence ($38); vehicle registration ($385); and ACTION bus fares ($1,449).

Assumptions

Fees are calculated based on one driver and one car with a vehicle tare weight of 1,155 kg to 1,504 kg. ACTION fares are calculated as peak single trips five days a week, reaching the monthly travelling cap of 40 trips, and an entitlement to free travel for people aged over 70.

Utilities

For 2018-19, utility charges comprise: electricity ($2,146); water ($509); and sewerage ($531). Concessions include the combined Utilities Concession ($654).

Assumptions

Consumption per year: electricity (7,200 kWh); and water (160 kL).

Other Concessions

They are both eligible to access the Spectacles Subsidy Scheme, which provides a $200 rebate every two years on the purchase of glasses.

Johan and Dewi

Property

For 2018-19, property fees comprise: general rates ($2,334); the Fire and Emergency Services Levy ($336); and the Safer Families Levy ($30).


Transport

For 2018-19, transport fees comprise: driver licence fee ($76); vehicle registration ($385); Road Rescue Fee ($26.40); Road Safety Contribution ($2.50); CTP insurance ($550); the CTP Regulator Levy ($1); the Lifetime Care and Support Levy ($36.50); school student ACTION fare ($378); adult ACTION fare ($1,449) and parking ($2,772).

For 2018-19, both drivers are eligible for a discount on the cost of their driver licences under the Rewards for Safe Driving Program ($23).

Assumptions

Fees are calculated based on two drivers and one car with a vehicle tare weight of 1,155 kg to 1,504 kg. A 30 ride paid cap for students is reached taking rides to and from school. The monthly travelling cap of 40 trips applies to the adult fare calculation. Once the monthly cap is reached, passengers’ remaining travel will be free of charge provided they continue to tag on and off with each journey. Parking fees have been calculated using the non-premium, all day City car park rate, which has been assumed to increase by six per cent from 2017-18 to 2018-19.

Utilities

For 2018-19, utility charges comprise: electricity ($2,879); natural gas ($2,369); water ($752); and sewerage ($531).

Assumptions

Consumption per year: electricity (10,200 kWh); natural gas (60 GJ); and water (230 kL).

Other Savings

If the household purchases a new house for $650,000, conveyance duty would have been $19,970 in 2017-18 and is $18,940 in 2018-19.

Mary

Property

For 2018-19, rent comprises 25 per cent of the full annual age pension of $23,598, with rent payable of $5,900. Market rent for a one bedroom unit in the area is around $17,680 per year in 2018-19 and was around $17,165 in 2017-18 based on data from the Real Estate Institute of Australia for the lower quartile for the Inner South.

Transport

For 2018-19, transport fees comprises the adult five days a week ACTION fare ($1,449). Concessions comprise ACTION’s concession fare ($1,449).


Assumptions

The Centrelink concession card provides access to ACTION’s off-peak concession fare. ACTION fares are calculated as off-peak single trips five days a week, reaching the monthly travelling cap of 40 trips. Once the monthly cap is reached passengers’ remaining travel will be free of charge provided they continue to tag on and off with each journey.

Utilities

For 2018-19, utility charges comprise: electricity ($1,782). Concessions include the combined Utilities Concession ($654).

Assumptions

Consumption per year: electricity (5,700 kWh); and water (125 kL). Water and sewerage charges are paid by the Community Services Directorate, and are valued at $424 and $531 respectively.

Peter

Property

For 2018-19, property fees comprise: general rates ($1,527) which is deferred (based on the average general rates for a townhouse in Garran); the Fire and Emergency Services Levy ($336); and the Safer Families Levy ($30).

Transport

For 2018-19, transport fees comprise: driver licence fee ($38); vehicle registration ($385); Road Rescue Fee ($26.40); Road Safety Contribution ($2.50); CTP insurance ($550); the CTP Regulator Levy ($1); and the Lifetime Care and Support Levy ($36.50).

For 2018-19, he is eligible for a discount on the cost of his driver licence under the Rewards for Safe Driving Program ($11).

Utilities

For 2018-19, utility charges comprise: electricity ($1,782); water ($424); and sewerage ($531).

Assumptions

Consumption per year: electricity (5,700 kWh); and water (125 kL).


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