Budget Paper 1994-95 No.6 Northern Territory Economy
Tabled Paper 2156
Tabled Papers for 6th Assembly 1990 - 1994; Tabled Papers; ParliamentNT
Tabled by Barry Coulter
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
Business Conditions A broad picture o f business conditions can be obtained from a number of economic indicators, namely commercial property vacancy rates, new business registrations, commercial and lease finance commitments and bankruptcies. Interest rates and Commonwealth taxation rates and structure also have a significant bearing on business conditions across the nation. The competitiveness o f Australian business improved markedly through 1993. Higher internal cash flows generated through increased profits and low interest expenses have assisted, along with substantial equity issues, in strengthening business balance sheets. Interest coverage ratios are the best they have been in a decade. Further indicating the extent to which business has recovered from the recession is the substantial reduction in the ratio o f non-performing loans to banks assets. Factor input costs have been held in check in a low inflation and increasingly competitive economic environment. Productivity gains and a generally weaker exchange rate have helped business become more competitive in international markets. Commercial Property Vacancy Rates The Australian Valuation Office (Darwin) publishes quarterly com m ercial office accom m odation data for m ajor centres throughout the Territory, namely Darwin C B D , C a su a rin a , D arw in su b u rb s , Palmerston, Katherine and Alice Springs. Commercial property vacancy rates for 1993 decreased in all centres. The average vacancy rate declined from 14.7% to 10.5% with Palmerston declining from 14.1% to 7.9%, Alice Springs 22.6% to 13.1%, Katherine 19.7% to 13.0% and Darwin CBD 13.9% to 10.4%. Darwin suburbs continued to show the highest office vacancy rate at 31.8%. 2 7 Figure 5.1 Commercial Property Vacancy Rates % * weighted by gross lettable area Source: Australian Valuation Office