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
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59 Territory Own-Source Revenue Northern Territory own-source revenue comprises taxes, fees, charges, miscellaneous property income, interest received and profit or loss on disposal of assets. Full details of revenue collected from Territory sources are set out in Budget Paper No. 3. The 2008-09 Budget introduces three key measures that will provide significant ongoing benefits to all Territorians, including Territory businesses. The first of these measures reforms the way in which stamp duty is imposed on property conveyances by reducing conveyance stamp duty rates on all transactions. The measure reduces the minimum rate to 1.5 per cent from 2.1 per cent and the maximum rate to 4.95 per cent from 5.4 per cent, and increases to $525 000 the value at which the new maximum rate applies. This will assist all home buyers, and all property and business investors in the Territory. This measure will apply from 6 May 2008 and is estimated to save home buyers and investors $12 million in 2008-09. The second measure delivers the Governments 2005 election commitment to reduce payroll tax rates from 6.2 per cent to 5.9 per cent. This will benefit all businesses that pay payroll tax in the Territory and has an estimated cost to the budget of $7.2 million in 2008-09. The payroll tax rate reduction will apply from 1 July 2008. The third of the key measures is the introduction of the first component of the overhaul of payroll tax arrangements announced in 2007, by harmonising payroll tax laws with all states in eight agreed areas from 1 July 2008. The Government has also committed to introducing payroll tax laws from 1 July 2009 that are consistent, as far as possible, with those adopted by New South Wales, Victoria, Queensland and Tasmania. States and territories will continue to determine rates and thresholds applicable in their jurisdictions. The payroll tax harmonisation measures will provide significant compliance cost savings for businesses that pay payroll tax, particularly those that operate in a number of jurisdictions. In addition to the compliance cost savings, all the payroll tax harmonisation measures are estimated to save businesses about $3 million a year in payroll tax. The 2008-09 Budget also abolishes stamp duty on deeds, except for deeds relating to a trust, and includes a range of efficiency and equity taxation measures which are explained as part of the other Budget initiatives in Chapter 4. This chapter provides an explanation of the Territorys own-source revenue regime, how it compares with the other jurisdictions, and the Territorys response to national tax reform. It also includes a statement of the Territorys forecast tax expenditures as a result of concessions and exemptions for 2008-09 through to 2011-12, as required by the Fiscal Integrity and Transparency Act. Chapter 6 Overview
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