Budget Paper No.2 Fiscal and Economic Outlook 2008-2009
Tabled paper 1293
Tabled papers for 10th Assembly 2005 - 2008; Tabled papers; ParliamentNT
Tabled By Delia Lawrie
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.
31 Chart 3.1 illustrates the Northern Territorys capital investment per capita relative to the average of other jurisdictions in the non financial public sector, and shows that Territory capital spending is expected to remain at levels above the states average. Source: State and Territory budget and outcome reports. State forward estimates based on mid-year reports. Further information on capital works projects is included in Budget Paper No. 4. Competitive Tax Environment Target: Ensure Territory Taxes and Charges are Competitive with the Average of the States The Government is committed to maintaining taxation at levels that are competitive with other jurisdictions and to encouraging increased levels of business activity in the Northern Territory. The 2008-09 Budget introduces three key measures to build on economic and employment growth. The first of these measures involves a reduction in stamp duty on property conveyance rates that will assist all Territory property buyers. The second measure delivers a reduction to payroll tax rates, and the third measure is the harmonisation of payroll tax laws with the other jurisdictions. A more detailed analysis of these revenue initiatives is provided in Chapter 4 and 6 of this Budget Paper. Comparisons of relative tax competitiveness are complex due to inherent differences in respective economies and in taxation regimes. However, in order to assess the competitiveness of the Territorys tax system, the following measures are utilised: taxation revenue per capita; and taxation effort as assessed by the Commonwealth Grants Commission (the Commission). Taxation revenue per capita is a simple summary measure that affords comparability with other jurisdictions. Chart 3.1: State and Territory Capital Investment per Capita Non Financial Public Sector Actual 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 $ Per Capita Northern Territory State Average Estimate Estimate Actual