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 72 Territory Own-Source Revenue National tax reform began on 1 July 2000. Key to the new arrangements was the replacement of wholesale sales tax with a broad-based GST, agreed removal of certain business taxes and the review of other taxes. In accordance with the Intergovernmental Agreement, the Territory abolished tourism marketing duty from 1 July 2000, stamp duty on quoted marketable securities and financial institutions duty from 1 July 2001, and debits tax from 1 July 2005. Following the Treasurers Conference in March 2005, the Territory joined other jurisdictions in proposing a five-year timetable for the abolition of other taxes, beginning from 1 July 2005. In accordance with that commitment, the Territory abolished: electronic debit transaction duty from 1 July 2005; stamp duty on the transfer of non-quoted marketable securities from 1 July 2006; stamp duty on the rent paid for the grant and renewal of non-residential leases and franchise arrangements from 1 July 2006; and stamp duty on the rent paid for the hire of goods, including consumer and producer goods and instalment purchase arrangements, from 1 July 2007. The one remaining business tax specified in the Intergovernmental Agreement that the Territory has agreed to abolish is stamp duty levied on the value of non-residential property conveyances, other than land. This is to be abolished from 1 July 2009. Tax concessions are often provided to benefit a specified activity or class of taxpayer. They are expenditures in the sense that their impact on the budget is similar to direct outlays, and they can be used to achieve similar goals to spending programs. Tax expenditures can be provided in a variety of ways including by way of exemption, deduction, rebate or reduced tax rate. The tax expenditure statement details revenue estimated to be forgone by the Government or financial benefits obtained by taxpayers as a result of tax exemptions or concessions provided by the Government. Identifying this expenditure assists in providing a more accurate picture of what the Government contributes by way of taxation concessions to assist various groups or industries. The tax expenditures identified in this statement relate to the more important and material concessions applicable in the Northern Territory. In accordance with the Fiscal Integrity and Transparency Act, the tax expenditure statement provides forecast information for 2008-09 and the following three financial years. Methodology Tax expenditures have been estimated by applying the benchmark rate of taxation to the forecast volume of activities or assets exempted by a particular concession. Only those future events that are certain or highly likely to impact on assumed tax bases or tax rates have been taken into consideration in estimating future tax expenditures. Otherwise, the existing taxation arrangements have been assumed to apply for future years. Measuring tax expenditures requires the identification of: a benchmark tax base; National Tax Reform Tax Expenditures


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