Rachel Stephen-Smith, the ACT Finance Minister, has addressed significant concerns surrounding the ACT Revenue Office’s (ACTRO) debt recovery process for the Home Buyer Concession Scheme (HBCS). Our recent investigations found pain and suffering among people. One of those affected, a woman named Steph, was issued with retrospective repayment notices for stamp duty concessions and subsequent penalties. The inquiry looked at 22 written testimonies from victims. Consequently, it recommended a set of recommendations to improve the efficiency with which the scheme is administered.
After her marriage broke down, Steph was granted a stamp duty concession. Under the current system, now she has a scary, unexpected $35,000 bill in back stamp duty, interest, and penalties and only three weeks to pay it! Her experience highlights the systemic problems uncovered in the investigation. Most importantly, it brought home the emotional and financial harm that so many of these notice recipients experience.
Government Acknowledges Concerns
In light of the inquiry’s findings, Rachel Stephen-Smith expressed regret over the distress caused by the government’s debt recovery efforts. She was very aware that a lot of people went through a lot of stress because of the initial jaunt notice they received.
“I certainly recognise that for a number of people this has been a really distressing experience and on behalf of the government I apologise for the distress that that has caused them,” – Rachel Stephen-Smith
The report then focused on 15 recommendations to try to improve the HBCS processes. Stephen-Smith noted that several of the recommendations align with positive changes already underway in the Revenue Office. She stated plainly that doing away with the self-assessment model entirely is not on the table.
“A lot of the recommendations though do reflect the work that the Revenue Office has been doing for the last 18 months or so — really looking at how it can improve its processes around supporting people through compliance,” – Rachel Stephen-Smith
Opposition Criticism
Mark Parton, ACT Opposition Leader, umbridge government’s handling of the lump. He noted that of all the things their administration hasn’t done, this is the worst. He argued that the report should cause the government to be embarrassed about its debt recovery strategy through the HBCS. Such a revelation requires a monumental rethinking of their tactics.
“I think it’s spot on and I think that the government rightly needs to be ashamed of what has gone on here,” – Mark Parton
Parton further emphasized the need for systemic improvements, arguing that vulnerable individuals deserve better treatment when navigating financial obligations related to home ownership.
“It reeks of a government that has run out of money and is going to find any possible way that they can to get it back,” – Mark Parton
Moving Forward
The inquiry’s recommendations seek to rectify the administrative deficiencies that have been exposed. According to Steph, one of those affected by the debt recovery process, these recommendations acknowledge a critical oversight in the system.
“The committee’s recommendations acknowledge something that was missing from the system, that real people — often at vulnerable points in their lives — are trying to do the right thing,” – Steph
The ACT government has already indicated that it looks forward to responding in detail to each recommendation. Stakeholders on all sides are hungry for a more efficient process that better serves prospective homebuyers without undermining tax compliance. The outcome of this inquiry could reshape how the HBCS operates, ensuring it serves its intended purpose without imposing undue stress on those it aims to assist.
