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

2008-09 Budget 48 Budget Initiatives Payroll Tax Rate Reduction The Territory Government is delivering on the 2005 election commitment to reduce payroll tax rates from 6.2 per cent to 5.9 per cent. This will benefit all of the nearly 1600 businesses that pay payroll tax in the Northern Territory. The average payroll tax saving per business will be around $4500 a year. The rate will be reduced from 1 July 2008 and has an estimated budget cost of $7.2 million in 2008-09. Payroll Tax Reform From 1 July 2008, the Budget also introduces measures to overhaul payroll tax arrangements announced by the Government in 2007 by harmonising payroll tax laws with all states in eight agreed areas. These areas relate to the timing of lodgements, motor vehicle allowances, accommodation allowances, a range of fringe benefits, payroll tax imposed on work performed outside a jurisdiction, employee share acquisition schemes, superannuation contributions for non-working directors and the grouping of businesses. The same laws that apply in New South Wales and Victoria for the payroll tax treatment of termination payments have also been introduced as part of these measures. This reflects the Northern Territorys current treatment of termination payments. The Government has also committed to further payroll tax harmonisation by introducing payroll tax laws from 1 July 2009 that are consistent, as far as possible, with those of New South Wales, Victoria, Queensland and Tasmania. The payroll tax harmonisation measures will provide significant compliance cost savings for businesses paying payroll tax, particularly for those that employ people in a number of jurisdictions. In addition to the compliance cost savings for businesses, it is estimated that adopting all the payroll tax harmonisation measures will provide total payroll tax savings to businesses of about $3 million a year. Equity, Efficiency and Administrative Enhancements The Government has approved a package of changes that enhance simplicity, efficiency and equity of the Territorys taxation laws and the First Home Owner Grant scheme. The following measures to commence from 1 July 2008 will: abolish nominal ($20) stamp duty on deeds except for deeds relating to a trust; include exploration licences and exploration retention licences as land for conveyance stamp duty purposes. Stamp duty will only apply to the conveyance of these licences, with the grant of a licence generally being excluded from duty; and ensure that the creation or transfer of a mining interest is a conveyance of the mining interest that must be duly stamped before it is recorded in a mining register. The following measures will apply from 1 July 2008 to better align the operation of the First Home Owner Grant Act and the stamp duty first home owner concession and principal place of residence rebate. The measures: allow five years to commence a prosecution under the First Home Owner Grant Act. This will apply to offences that are alleged to have been committed from


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