2006-07 Australian Capital Territory budget
Encyclopedia
The 2006-07 Australian Capital Territory budget for the financial year 2006-2007 was presented to the Australian Capital Territory Legislative Assembly
by Chief Minister of the Australian Capital Territory
Jon Stanhope
on 6 June 2006. Stanhope is also the Treasurer, with this budget being the first he has presented as Treasurer.
Among the most-discussed elements of the budget were its planned closure of 39 schools in the Territory
as part of its "Towards 2020: Renewing Our Schools" vision for education in the Territory.
Stanhope asserted in a Letter to the People of the ACT, that this is the "first time in 17 years that any ACT Government has embarked on strategic and structural reform of this magnitude." He asserts that demographic shifts have led to 18,000 empty desks in ACT government schools and that it costs up to $10,000 more per year to educate children in schools with low enrolments, compared with a child at a school which is at or near capacity. Quoting figures from the Commonwealth Grants Commission
, Stanhope argues that "it costs some 20% more, across the board, to deliver basic services like health and education in the ACT than the national average.". The budget announcements have provoked strong criticism from the ACT Council of Parents and Citizens Associations, Australian Education Union
ACT branch, the ACT Opposition and members of the public.
Changes affecting revenue are designed to expand the revenue base, achieve parity with other jurisdictions where appropriate, and recover costs incurred in delivering services.
$337 million will be spent on Capital
Works
Projects in 2006-07: $112.3 million for New Works announced in the 2006/07 budget and $224.7 million for Works-in-Progress, i.e. previously announced measures.
The Government proposes to make capital improvements in schools ($90m) and to spend more on school maintenance. New schools will be built in Belconnen and Gungahlin ($66m) and there will be a feasibility study for a combined college and CIT campus at Gungahlin. A further $20 million has been provided over four
years for Information Technology services across the school system.
The Government also proposes to close significant numbers of schools over the next three years.
There will be $41 million more spent on health, but the Government plans to slow the rate of growth in this budget from 10 per cent a year to around 6 per cent.
An extra $10 million will be spent to reduce elective surgery
waiting lists over four years.
Canberra Hospital
will become the major tertiary referral hospital
, while Calvary Public Hospital will provide more specialised services.
has been made more stringent. Single people earning more than 60% of the average wage and couples earning more than 75% of the average wage will not be eligible.
500 dwellings will be sold and the money reinvested in other public housing.
will be increased by 60 more police.
Surveillance in the territory will increase with a network of Closed-circuit television (CCTV)
cameras in public places and on ACTION
buses.
The ACT Emergency Services Authority (ESA)
will be re-absorbed into the ACT Department of Justice & Community Safety. A new emergency services headquarters at Fairbairn will be built at a cost of $17.3 million.
curbed at 9 per cent; compared with 15.4% for existing employees and 29% contributions towards the Chief Minister's superannuation.
The ACT public service will be cut by 500 jobs.
A new department will absorb several agencies including Environment ACT and sport and recreation.
Household water bills will increase in the order of $100 per year. There will be a new water fee of 30 cents per kilolitre. This fee will be added to water abstraction
charges nearly doubling them to 55 cents per kilolitre.
Australian Capital Territory Legislative Assembly
The Australian Capital Territory Legislative Assembly is the unicameral legislature of the Australian Capital Territory...
by Chief Minister of the Australian Capital Territory
Chief Minister of the Australian Capital Territory
The Chief Minister of the Australian Capital Territory is the head of government of the Australian Capital Territory. The leader of party with the largest representation of seats in the unicameral Australian Capital Territory Legislative Assembly usually takes on the role...
Jon Stanhope
Jon Stanhope
Jonathan Ronald Stanhope is a former Australian politician who was Labor Chief Minister of the Australian Capital Territory from 2001 to 2011. Stanhope represented the Ginninderra electorate in the ACT Legislative Assembly from 1998 until 2011. He resigned as Chief Minister on 12 May 2011 and as...
on 6 June 2006. Stanhope is also the Treasurer, with this budget being the first he has presented as Treasurer.
Among the most-discussed elements of the budget were its planned closure of 39 schools in the Territory
as part of its "Towards 2020: Renewing Our Schools" vision for education in the Territory.
Stanhope asserted in a Letter to the People of the ACT, that this is the "first time in 17 years that any ACT Government has embarked on strategic and structural reform of this magnitude." He asserts that demographic shifts have led to 18,000 empty desks in ACT government schools and that it costs up to $10,000 more per year to educate children in schools with low enrolments, compared with a child at a school which is at or near capacity. Quoting figures from the Commonwealth Grants Commission
Commonwealth Grants Commission
The Commonwealth Grants Commission is an Australian government body that advises on Australian Government financial assistance to the states and territories of Australia with the aim of achieving Horizontal Fiscal Equalisation....
, Stanhope argues that "it costs some 20% more, across the board, to deliver basic services like health and education in the ACT than the national average.". The budget announcements have provoked strong criticism from the ACT Council of Parents and Citizens Associations, Australian Education Union
Australian Education Union
The Australian Education Union is an Australian trade union, founded in 1984 as the Australian Teachers Union, which is registered with Fair Work Australia as an employee group, and is affiliated with the Australian Council of Trade Unions...
ACT branch, the ACT Opposition and members of the public.
Revenue
- Taxes, Fees and Fines: $950.5 million. Main areas are:
- Duties: $228.8m
- Payroll tax: $220m
- General rates:$157m
- Land tax: $63.8m
- Gambling: $46.6m
- Vehicle registration: $65.7m
- Regulatory fees: $45.6m
- Water abstraction charge: $27.2m
- Traffic fines: $17.6m
- Parking fines: $9.2m
- Commonwealth Grants: $1,203.6 million
- an increase of $65.6 million from the 2005-06 estimated outcome, mainly due to increases in Goods and Services Tax grants and Specific Purposes Payments, offset by the loss of National Competition Payments.
- User Charges: $246.7 million
- revenues generated from the sale of goods and services to customers
- Other Revenue: $469.5 million
- includes dividends from Territory owned Corporations, revenue from joint ventures, land sales, interest and investment returns. "This revenue will decrease by $207.5 million from the 2005-06 estimated outcome. Reductions are expected across most other revenue components."
Changes affecting revenue are designed to expand the revenue base, achieve parity with other jurisdictions where appropriate, and recover costs incurred in delivering services.
Expenditure
Total expenses in 2006/07 are planned to be $2,886.7m. Major areas of government expenditure are:| Portfolio | 2006/07 planned expenditure |
|---|---|
| Health and Community Care | $756.1m |
| Government Schooling (including Early Childhood and Preschool Education) | $452.3m |
| Territory and Municipal Services (excluding Tourism, Environment, Sustainability, Heritage and Forestry Services) | $368.8m |
| Disability and Community Services | $207.8m |
| Non Government Schooling | $155.4m |
| Vocational Education and Training | $111.5m |
| Justice and Community Safety | $110.4m |
| Housing ACT | $104.7m |
| Policing | $99.5m |
| Treasury (including administration of the GST and FHOG) | $94.0m |
| Public Transport | $85.8m |
| Emergency Services | $77.2m |
| Planning | $60.3m |
| Environment, Sustainability, Heritage and Forestry Services | $41.8m |
| Chief Minister’s Department | $28.6m |
| Business and Economic Development | $17.7m |
| Tourism | $16.1m |
| Legislative Assembly | $10.8m |
| Executive | $5.2m |
| Auditor-General | $4.6m |
$337 million will be spent on Capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
Works
Public works
Public works are a broad category of projects, financed and constructed by the government, for recreational, employment, and health and safety uses in the greater community...
Projects in 2006-07: $112.3 million for New Works announced in the 2006/07 budget and $224.7 million for Works-in-Progress, i.e. previously announced measures.
Net operating balance
The budget for 2006/07 includes a projected operating balance in $million per year over the next four years as:| 2006/07 | 2007/08 | 2008/09 | 2009/10 |
|---|---|---|---|
| $80.3m deficit | $40.7m deficit | $18.3m surplus | $67.7m surplus |
Education
In 2006/07 the Government will spend $719.2 million on education:- Government school education = $430.9m
- 35,141 students in government schools
- Non-government schools = $155.4m
- grants to support 24,679 students in 44 non-government schools;
- Vocational education and training = $111.5m
- Early intervention = $21.4m
The Government proposes to make capital improvements in schools ($90m) and to spend more on school maintenance. New schools will be built in Belconnen and Gungahlin ($66m) and there will be a feasibility study for a combined college and CIT campus at Gungahlin. A further $20 million has been provided over four
years for Information Technology services across the school system.
The Government also proposes to close significant numbers of schools over the next three years.
- Schools to close at the end of 2006:
- Preschools: Chifley, Flynn, Giralang, Hackett, Hall, Macarthur, McKellar, Mount Neighbour, Reid, Rivett, South Curtin, Tharwa, The Causeway, Weston Creek
- Primary schools: FlynnFlynn, Australian Capital TerritoryFlynn is a suburb in the Canberra district of Belconnen the postcode is 2615. The suburb is named after John Flynn, who was a Presbyterian Minister and Missionary who was mainly responsible for the formation of the Australian Inland Mission Aerial Medical service in 1928. Flynn was the forerunner...
, GiralangGiralang, Australian Capital TerritoryGiralang is a suburb of Canberra, Australia in the district of Belconnen. The suburb is named after the word in the language of the Wiradhuri Aboriginal tribe of the Central West of New South Wales, meaning star. The suburb name was gazetted on 15 January 1974...
, HallHall Primary SchoolHall Primary School was a rural primary school on the northern outskirts of Canberra in the Australian Capital Territory. It was Canberra's oldest continually operating school, having opened in 1911, until its closure was announced on 13 December 2006, by the Education Minister, Andrew Barr as...
, MelroseChifley, Australian Capital TerritoryChifley is a suburb of Canberra, Australia in the district of Woden Valley.It was named after Joseph Benedict Chifley, Prime Minister of Australia from July 1945 to December 1949. The streets of Chifley are named for Scientists and Educationalists...
, Mount NeighbourKambah, Australian Capital TerritoryKambah is the northernmost suburb in the district of Tuggeranong, Canberra. It is located just south of the Mount Taylor in the Canberra Nature Park. It is located north of the suburbs of Greenway and Wanniassa...
, RivettRivett, Australian Capital TerritoryRivett is a residential suburb of Canberra, Australian Capital Territory, Australia, established in the late 1960s. On Census night 2006, Rivett had a population of 3,069 people...
, TharwaTharwa Primary SchoolTharwa Primary School was located in the small village of Tharwa, Australian Capital Territory. It was built in 1898 and opened in 1899. The school had two classrooms for the primary school, plus a preschool room. While the current school dates from 1912, the site of the school made it the oldest...
, Weston CreekWeston, Australian Capital TerritoryWeston is a suburb of Canberra, Australian Capital Territory, Australia. On Census night 2006, Weston had a population of 3,176 people....
- Schools to close at the end of 2007:
- Preschools: Cook, Gilmore, Page, Village Creek
- Primary schools: CookCook, Australian Capital TerritoryCook is a suburb of Canberra, Australian Capital Territory, Australia. Cook is in the district of Belconnen. On Census night 2006, Cook had a population of 2,817 people....
, Gilmore, Village Creek - High school: KambahKambah, Australian Capital TerritoryKambah is the northernmost suburb in the district of Tuggeranong, Canberra. It is located just south of the Mount Taylor in the Canberra Nature Park. It is located north of the suburbs of Greenway and Wanniassa...
- Schools to close at the end of 2008:
- Preschools: Higgins, Holt, Isabella Plains, Melba
- Primary schools: Higgins, Holt, Isabella Plains, Mount RogersMelbaMelba may refer to:* Dame Nellie Melba, Australian soprano opera singer* Melba , a 1953 film directed by Lewis Milestone* Melba Montgomery, a country music singer* Melba Moore, an American R&B singer and actress...
- College: DicksonDickson CollegeDickson College is a two-year secondary college located in the Canberra suburb of Dickson, Australian Capital Territory. It was created in 1976 when Dickson High School closed....
was originally to close, however has had a reprieve and now is not closing at this time.
Health
In 2006/07 the Government will spend $765.1 million on health:- Acute services = $494.8m
- including hospital treatment for 76,520 inpatients and 273,350 outpatients;
- Community health services= $99.8m
- Mental health = $50.9m
- including 200,320 mental health non-admitted occasions of service;
- Early intervention & prevention = $33.7m
- including 92% of one year olds will be immunised according to the primary scheduleVaccination scheduleA vaccination schedule is a series of vaccinations, including the timing of all doses, which may be either recommended or compulsory, depending on the country of residence....
, and - including breast cancer screening for 12,000 women
- including 92% of one year olds will be immunised according to the primary schedule
- Aged care and rehabilitation services = $32m
- Public health services = $23.7m
- Cancer services = $21m
There will be $41 million more spent on health, but the Government plans to slow the rate of growth in this budget from 10 per cent a year to around 6 per cent.
An extra $10 million will be spent to reduce elective surgery
Surgery
Surgery is an ancient medical specialty that uses operative manual and instrumental techniques on a patient to investigate and/or treat a pathological condition such as disease or injury, or to help improve bodily function or appearance.An act of performing surgery may be called a surgical...
waiting lists over four years.
Canberra Hospital
Canberra Hospital
The Canberra Hospital is a public hospital located in Garran, Canberra. It is a tertiary level centre with 500 beds and caters to a population of about 520,000...
will become the major tertiary referral hospital
Tertiary referral hospital
A tertiary hospital, tertiary referral center or tertiary care center is a term without a formal definition which in the United States generally refers to:...
, while Calvary Public Hospital will provide more specialised services.
Public housing
Criteria for allocation of Public housingPublic housing in the Australian Capital Territory
Government built housing in Canberra and the Australian Capital Territory has a history stemming from the decision to build the National Capital in the bush. In the early years Canberra's housing was entirely government-built and even after private development took over there has been a number of...
has been made more stringent. Single people earning more than 60% of the average wage and couples earning more than 75% of the average wage will not be eligible.
500 dwellings will be sold and the money reinvested in other public housing.
Police & Emergency Services
The ACT police forceAustralian Capital Territory Police
ACT Policing is the portfolio of the Australian Federal Police responsible for providing policing services to the Australian Capital Territory...
will be increased by 60 more police.
Surveillance in the territory will increase with a network of Closed-circuit television (CCTV)
Closed-circuit television
Closed-circuit television is the use of video cameras to transmit a signal to a specific place, on a limited set of monitors....
cameras in public places and on ACTION
ACTION
ACTION is a public bus service operating in Canberra, ACT, Australia. It is operated by the ACT Department of Territory and Municipal Services...
buses.
The ACT Emergency Services Authority (ESA)
Australian Capital Territory Emergency Services Agency
The Australian Capital Territory Emergency Services Agency was established by the Emergencies Act 2004 , which came into effect on 1 July 2004...
will be re-absorbed into the ACT Department of Justice & Community Safety. A new emergency services headquarters at Fairbairn will be built at a cost of $17.3 million.
Public service
New recruits will have employer superannuation contributionsSuperannuation in Australia
Superannuation is a retirement program in Australia. It has a compulsory element whereby employers are required by law to pay an additional amount based on a proportion of an employee's salaries and wages into a complying superannuation fund.An individual's superannuation fund can be accessed...
curbed at 9 per cent; compared with 15.4% for existing employees and 29% contributions towards the Chief Minister's superannuation.
The ACT public service will be cut by 500 jobs.
A new department will absorb several agencies including Environment ACT and sport and recreation.
Increases in taxes and charges
Despite the cuts in services and school closures, the average ACT household will pay around $400 more each year: rates will rise by 6 per cent and households will be charged a new fire and emergency services levy of $84.Household water bills will increase in the order of $100 per year. There will be a new water fee of 30 cents per kilolitre. This fee will be added to water abstraction
Water abstraction
Water abstraction, water extraction, or groundwater abstraction is the process of taking water from any source, either temporarily or permanently. Most water is used for irrigation or treatment to produce drinking water....
charges nearly doubling them to 55 cents per kilolitre.
Accounting changes
The Government has changed its accounting system so the Budget does not include fluctuating amounts like superannuation returns.See also
- Australian Capital TerritoryAustralian Capital TerritoryThe Australian Capital Territory, often abbreviated ACT, is the capital territory of the Commonwealth of Australia and is the smallest self-governing internal territory...
- Education in the Australian Capital TerritoryEducation in the Australian Capital TerritoryAlmost all educational institutions in the Australian Capital Territory are located within Canberra. The ACT public education system schooling is normally split up into Pre-School, Primary School , High School and College followed by studies at university or TAFE...