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



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

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Tabled paper 1293


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




Tabled By Delia Lawrie


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2008-09 Budget 70 Territory Own-Source Revenue Land Revenue This category includes taxes on the ownership of land, where the taxes are based on the assessed unimproved value of the land. It also includes any metropolitan land planning and development levies that are included in the land tax base of some states. Land tax is generally levied on commercial land and investment residential property, although a general exclusion is provided for land used for primary production. The Territory does not impose a land tax, however, in its 2008 assessment, the Commission has assessed a land tax capacity of approximately $23.6 million, being an approximation of the land tax that the Territory would receive, based on an average of the other states land tax regimes. Gambling Taxation Gambling taxes constitute a significant proportion of state and territory revenues. Revenue from the Territorys gambling taxes is forecast to be $76.5 million in 2008-09. Table 6.6 provides a breakdown of the revenue that the Territorys gambling taxes are expected to raise in 2008-09. Tax/Duty $000 Community Gaming Machines 29 527 Lotteries 13 129 Casino 11 821 Bookmakers Racing and Sports Betting 11 642 Wagering Taxes 7 502 Community Benefit Levy 2 823 Internet Gaming 103 Total 76 547 Source: Northern Territory Treasury Community gaming machine tax is based on the gross profits (that is, net player losses) from gaming machines. The tax is imposed on clubs at marginal rates, ranging from 12.91 per cent to 42.91 per cent. Hotels pay tax at the flat rate of 42.91 per cent, plus a community gaming machine levy of 10 per cent. The Territory collects lotteries taxes through a revenue sharing arrangement with the Victorian Government, under which taxes of 79.4 per cent of gross profit of lottery sales in the Territory are collected by the Victorian Government and returned to the Territory. Casino taxes are based on gross profits derived from games played at the casinos. Tax rates vary depending on the type of gaming and net tax payable is calculated after GST is deducted. Internet gaming tax of 4 per cent of gross profit is paid on bets placed by overseas players. Bookmakers turnover tax is levied on the value of bets placed with a bookmaker. The tax on race betting is 0.33 per cent of turnover for all horse, greyhound and harness racing events. The tax on sports betting is 0.25 per cent of turnover for Table 6.6: Estimated Revenue from Gambling Taxes in 200809