Territory Stories

Budget Paper No.2 Fiscal and Economic Outlook 2008-2009

Details:

Title

Budget Paper No.2 Fiscal and Economic Outlook 2008-2009

Other title

Tabled paper 1293

Collection

Tabled papers for 10th Assembly 2005 - 2008; Tabled papers; ParliamentNT

Date

2008-05-06

Description

Tabled By Delia Lawrie

Notes

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.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Series/C1968A00063

Parent handle

https://hdl.handle.net/10070/283912

Citation address

https://hdl.handle.net/10070/410393

Page content

13 General government operating revenue (accrual) has increased from the 2007-08 Budget by $338.8 million in 2007-08 and $332.8 million in 2008-09 with consistent increases for cash receipts. The difference between the cash and accrual movements is largely due to the timing of tax equivalents and dividends received from government businesses. The main revenue-related policy variations include: reducing conveyance stamp duty rates and increasing to $525 000 the property value at which the new maximum rate of 4.95 per cent applies. This measure has an estimated cost of $12 million in 2008-09 and is effective from 6 May 2008; and reducing the payroll tax rate from 6.2 per cent to 5.9 per cent. This measure together with harmonisation measures has an estimated cost of $8.9 million in 2008-09 and is effective from 1 July 2008. The main non-discretionary variations to revenue since the May 2007 Budget include: upward revision of Territory taxation revenue of $31.7 million in 2007-08 and $41.8 million in 2008-09 due to continuing high levels of economic activity. This is offset by Governments measure to reduce the payroll tax rate and stamp duty on conveyances; additional GST revenue of $51 million in 2007-08 and $160 million in 2008-09 to reflect increased Commonwealth estimates of national GST collections and the Northern Territorys increased share of national population arising from the 2006 Census. These factors flow through to all forward years. GST revenue in 2008-09 has further increased as a result of the Northern Territorys 2008 relativity as assessed by the Commonwealth Grants Commission; increased specific purpose payments (SPPs) of $195.1 million in 2007-08 and $122.3 million in 2008-09 as shown in Table 2.4; increased interest revenue of $20.5 million in 2007-08 and $6.9 million in 2008-09 due to higher cash holdings across government and interest rate rises in 2007-08; increased mining royalty revenue of $16.2 million in 2007-08 and $11.1 million in 2008-09 due to increased mining production and commodity prices; increases in agency revenue across all agencies, largely linked to increased expenditure commitments; and increases in tax equivalents reflecting anticipated improved performance by government business divisions (GBDs) and government owned corporations (GOC), largely related to the Power and Water Corporation, partly offset by reduced dividends, mainly the result of a dividend moratorium provided to the Power and Water Corporation for 2007-08 and 2008-09 to facilitate additional capital investment. 2007-08 2008-09 $M $M Northern Territory Emergency Response 75.4 14.9 Indigenous housing 9.0 41.5 Health 38.5 21.1 Education 54.4 17.4 Other 17.8 27.4 Total Increase 195.1 122.3 Source: Northern Territory Treasury Table 2.4: Growth in SPP Funding


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