Territory Stories

Northern Territory budget papers 2003 - 2004

Details:

Title

Northern Territory budget papers 2003 - 2004

Other title

2003/04 Budget paper

Creator

Northern Territory. Department of Treasury

Collection

Northern Territory budget papers; E-Journals; PublicationNT

Date

2003-05-29

Notes

Made available via the Publications (Legal Deposit) Act 2004 (NT).; Please Note: This can't be read online. Please download to read the documents

Table of contents

Northern Territory Budget paper No. 01 2003-04 Speech and Appropriation Bill -- Northern Territory Budget paper No. 02 2003-04 Fiscal and Economic Outlook -- Northern Territory Budget paper No. 03 2003-04 The Budget -- Northern Territory Budget paper No. 04 2002-03 Capital Works Program -- Northern Territory Budget paper No. 05 2002-03 Budget Overview -- Budget paper No. 06 2002-03 NT Economy -- Northern Territory Budget paper No. 07 2002-03 Regional Highlights -- Northern Territory Budget paper No. 08 2002-03 Building Territory Business

Language

English

Subject

Appropriations and expenditures; Periodicals; Budget; Finance, Public

Publisher name

Northern Territory Government

Place of publication

Darwin

Volume

2003/04

File type

application/pdf

Use

Attribution International 4.0 (CC BY 4.0)

Copyright owner

Northern Territory Government

License

https://creativecommons.org/licenses/by/4.0/

Related links

https://hdl.handle.net/10070/591859 [LANT: E-Journals: Northern Territory Budget paper No. 01 2003-04 The Speech and Appropriation Bill]; https://hdl.handle.net/10070/591861 [LANT: E-Journals: Northern Territory Budget paper No. 02 2003-04 Fiscal and Economic Outlook]; https://hdl.handle.net/10070/591863 [LANT: E-Journals: Northern Territory Budget paper No. 03 2003-04 The Budget]; https://hdl.handle.net/10070/591865 [LANT: E-Journals: Northern Territory Budget paper No. 04 2003-04 Capital Works Program]; https://hdl.handle.net/10070/591867 [LANT: E-Journals: Northern Territory Budget paper No. 05 2003-04 Budget Overview]; https://hdl.handle.net/10070/591869 [LANT: E-Journals: Northern Territory Budget paper No. 06 2003-04 NT Economy]; https://hdl.handle.net/10070/591871 [LANT: E-Journals: Northern Territory Budget paper No. 07 2003-04 Regional Highlights]; https://hdl.handle.net/10070/591873 [LANT: E-Journals: Northern Territory Budget paper No. 08 2003-04 Building Territory Business]

Parent handle

https://hdl.handle.net/10070/244898

Citation address

https://hdl.handle.net/10070/591861

Related items

https://hdl.handle.net/10070/591865; https://hdl.handle.net/10070/591867; https://hdl.handle.net/10070/591869; https://hdl.handle.net/10070/591871; https://hdl.handle.net/10070/591873; https://hdl.handle.net/10070/591859; https://hdl.handle.net/10070/591863

Page content

Fiscal and Economic Outlook 98 _______________________________________________________________________________________________ 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 (eg. the Governments commitment to reduce pay-roll tax in 2003-04 and 2004-05). Otherwise, the existing taxation arrangements have been assumed to apply for future years. Measuring tax expenditures requires the identification of: a benchmark tax base; concessionary taxed components of the benchmark tax base, such as a specific activity or class of taxpayer; and a benchmark tax rate to apply to the concessionary taxed components of the tax base. The establishment of a tax benchmark provides a basis against which each tax concession can be evaluated. The aim of the benchmark is to determine which concessions are tax expenditures as opposed to structural elements of the tax. By definition, tax expenditures are those tax concessions not included as part of the tax benchmark. Pay-roll Tax 2003-04 2004-05 2005-06 2006-07 Tax expenditure ($ million) 83.3 80.8 83.3 84.8 The benchmark tax base for pay-roll tax is assumed to be all wages, salaries and supplements paid in the Northern Territory, as defined in the Pay-roll Tax Act. The benchmark tax rate is assumed to be the pay-roll tax rate that will apply in 2003-04, being 6.2 per cent. The Governments pre-election commitment to reduce pay-roll tax in 2003-04 and 2004-05 has been factored into the tax expenditure forecasts for pay-roll tax. The estimated tax expenditure reported above is comprised of the following. SMALL BUSINESS EXEMPTION The first $600 000 of an employers wages are exempt from pay-roll tax in the Territory. Accordingly, employers with wages less than this amount are not required to pay tax and employers with wages that exceed this amount only pay tax on the excess. At the pay-roll tax rate of 6.2 per cent, the exemption reduces an employers annual payroll tax liability by $37 200. Much of this information is not collected for pay-roll tax purposes, as employers with wages below $600 000 are not generally required to register for pay-roll tax. Therefore, the cost of this concession has been estimated using a combination of actual data collected from pay-roll tax registered employers and Australian Bureau of Statistics data relating to persons employed by small business.