MEETING OF COUNCIL - Town of Cambridge

COUNCIL MINUTES
TUESDAY 27 NOVEMBER 2012
GST
The TPRC have appointed Ernst & Young to provide advice on GST on lot sales. Technically
the issues are being worked through, and it is likely that recent changes to applicability of the
GST Act to local government will result in a significant reduction in the GST liability.
Financial Report
Revenue
$6,055,057 under budget, with only $526,000 revenue received to date.
Expenditure
$2,950,086 under budget, with under expenditure in the areas of Lot production,
Landscape, Infrastructure and Sales and marketing.
The SPG has advised that the shortfall in sales revenue is attributed to the following;
• $3.2 million revenue received in FYE12 ahead of budget;
• $2.84 million revenue s due to delay of 13 settlements;
The shortfall in revenue is primarily as a result of delays in securing clearances and titles for
the Stage 1B lots. To date 8 contracts have been completed for Stage 1B, with settlements
now planned in October 2012.
In terms of expenditure a major part of the variance to budget can be attributed to the lag in
payments for new works initiated since July. Significant payments were made in August and
this is expected to continue over the coming months will as payments for earthworks and
civil works contracts are realised.
Sales Report
Stage 1
The sales strategy adopted by the TPRC sees 63 lots, comprising of a mixture of traditional
and cottage lots identified in Stage 1. On 10 March 2012, the first 24 lots were released to
the market (Stage 1A). All 24 lots have been sold.
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