Australian Capital Territory
Taxation Administration (Rates) Determination 2013 (No 1)
Disallowable instrument DI2013-175
made under the  
Taxation Administration Act 1999, s139 (Determination of amounts payable under tax laws)
EXPLANATORY STATEMENT

1.	This Disallowable Instrument commences on 1 July 2013.

2.	As part of the 2012-13 Budget, the Government announced that it would be reforming the Territory’s taxation system. Reform to the general rates system will continue with the 2013-14 Budget.  

3.	General rates are levied on all residential property to provide funding for a wide range of essential services to the Canberra community, including municipal services, schools, roads and hospitals.

4.	Under section 139 of the Taxation Administration Act 1999, the Minister has the authority to determine, in writing by disallowable instrument, amounts and rates applicable for the Rates Act 2004.

5.	This instrument determines the variable rating factors for the purpose of the calculation of rates payable under the Rates Act 2004.

6.	This instrument determines different amounts for the FC or fixed charge and the P or percentage rate.  It also determines the TA or threshold amount for section 14 (3) of the Rates Act 2004.

7.	This instrument determines the fixed charge for a parcel of commercial land, the fixed charge for a parcel of residential land, the threshold amount, the percentage rate for a parcel of commercial land, and the percentage rate for a parcel of residential land for section 34 (4) of the Rates Act 2004.

8.	For section 14 (3) of the Rates Act 2004, the fixed charge (FC) is determined at:
•	$626 for residential land;
•	$1,749 for commercial land; and
•	$139 for rural land.

9.	For section 14 (3) of the Rates Act 2004 it determines the different amounts for percentage rates. Table 1 provides the thresholds and rates for residential, commercial, and rural land.

10.	Calculation of general rates for residential land is as follows:
•	The owner of land which has an average unimproved land value of $150,000 or less will be assessed at a rate of 0.2306%.
•	The owner of land which has an average unimproved land value of between $150,001 and $300,000 will be assessed at $345.90 plus 0.3241% on the average unimproved value above $150,000.
•	The owner of land which has an average unimproved land value of between $300,001 and $450,000 will be assessed at $832.05 plus 0.3876% on the average unimproved value above $300,000.
•	The owner of land which has an average unimproved land value greater than $450,000 will be assessed at $1,413.45 plus 0.4312% on the average unimproved value above $450,000.

11.	Calculation of general rates for commercial land is as follows:
•	The owner of land which has an average unimproved land value of $150,000 or less will be assessed at a rate of 2.2069%.
•	The owner of land which has an average unimproved land value of between $150,001 and $275,000 will be assessed at $3,310.35 plus 2.6429% on the average unimproved value above $150,000.
•	The owner of land which has an average unimproved land value greater than $275,000 will be assessed at $6,613.98 plus 3.5369% on the average unimproved value above $275,000.

12.	Rural land will be assessed at a rate of 0.1524%.

13.	The ACT Government has abolished the previous threshold amount of $16,500. 

14.	This instrument revokes DI2012-96. DI2012-96 continues to apply to the period 1 July 2012 to 30 June 2013 inclusive.

Authorised by Treasurer
Andrew Barr MLA