MOTOR VEHICLES AMENDMENT BILL 2001 Second Reading Speech

Northern Territory Second Reading Speeches

MOTOR VEHICLES AMENDMENT BILL 2001

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Madam Speaker, I move that the bill now be read a second time.

Madam Speaker, I advise that I will be seeking to have this bill passed through all stages on Wednesday 28 November 2001.

The purpose of the bill is to give effect to the Temporary Budget Improvement Levy which was one of the measures announced as part of the government’s mini-budget strategy to improve the financial condition of the Territory.

The bill introduces a temporary increase in passenger motor vehicle registration fees by way of an additional levy of $90 for annual registration or a monthly pro rata amount for lesser registration periods. The levy is to apply to new registrations and renewal notices issued on or after 28 November 2001. Excluded from the levy are omnibuses and goods vehicles with greater than 3.5 tonnes gross vehicle mass as defined by the Australian Design Rules, heavy vehicles with greater than 4.5 tonnes gross vehicle mass as defined by the Australian Design Rules and motor tractors, trailers, caravans and other miscellaneous vehicles.

Hardship relief is provided by way of a 50% reduction in the levy for holders of a Northern Territory Pensioner Concession card or a Commonwealth Health Care or Pensioner Concession card. The concession is only available for one motor vehicle registered in the name of the card holder. Where a person cancels their registration prior to its expiry, a pro rata refund of the levy will be made on application to the registrar.

The government recognises that the state of the Territory’s finances is a problem for all Territorians including the members of this place and government offices. Accordingly, members and government officers who have private use of a private plated government motor vehicle under an employment contract or other arrangement will also be required to pay the levy in relation to their government provided vehicles. The temporary nature of this measure has been entrenched into the bill by the insertion of a sunset clause that ensures that the levy only applies for a maximum of three years.

The reason for a broadly applied increase in motor vehicle registration fees is that existing taxes fall predominantly on business. An increase to another tax source would aggravate the effects of already high business taxes, weaken the Territory’s economic base, retard recovery and thus impact on jobs. The government is not prepared to risk further pressure on jobs.

The government is aware of the concern Territorians will have about the levy and other measures announced as part of this budget. Unfortunately, there is little choice. The Territory simply must reduce, then eliminate its fiscal deficit, and the structural weakness in the Territory budget inherited from the former government. This measure is an important part of the mini-budget strategy which will prepare the Territory to share in the recovery of the Australian and international economies.

I commend the bill to honourable members.

[Index] [Search] [Bill] [Help]