Joint Media Release from the Leader of the Opposition Lia Finocchiaro and Shadow Minister for Business, Jobs and Training Marie-Clare Boothby:
Small businesses in the Territory will save tens of thousands of dollars a year on tax under a CLP government.
The CLP will:
As part of its Plan of Action to get the economy moving forwards, the CLP will raise the payroll tax-free threshold for the first time in 13 years from the current rate of $1.5 million to $2.5 million.
This means Northern Territory employers with total payrolls below $2.5 million will not need to pay payroll tax at all. The Territory’s current payroll tax rate is 5.5 per cent.
The change will see the Territory lead the nation with the most generous payroll tax-free threshold in the country, with ACT next in line with a payroll tax-free threshold of $2 million.
“To get the Territory’s economy moving forwards and rebuild our reputation, we need to be the most competitive place to do business in the country,” said Leader of the Opposition, Lia Finocchiaro.
“We want our small businesses to grow and thrive. But crime and cost of living is threatening to shut their doors for good. Many have already shut-up shop, having been let down by a bad
Government.”
“The CLP believe in reward for effort, but Labor believe if you do well you should reward
them. The only way to grow the Territory’s economy is to back Territorians by making it easier to do business.”
“Our message to small business owners and the mums and dads doing it tough is: we’ve got your back. Under our payroll tax reforms, more than 1300 Territory businesses will save up to $55,000 per year.
“This is money that can be reinvested back into the business, used to hire more employees or simply help pay the bills and deal with our cost of living crisis.”
Apprentice and trainee wages will also be exempt from payroll tax as part of the new $2.5 million threshold, saving businesses thousands of dollars more while encouraging them to invest in growing Territory talent by offering more apprenticeship and trainee positions.
Currently, there are around 3,700 apprenticeships and trainees in the Territory.
“For most of our small businesses, wage bills are a huge component of running a business, making up half of operational costs,” said Shadow Minister for Business, Jobs and Training, Marie-Clare Boothby.
“Small businesses are the lifeblood of our communities. They are the coffee shop down the road, the local butcher, your gym, your electrician.
“By cutting payroll tax for hundreds of businesses we are saving them money and saving Territory jobs.”
Raising the payroll tax-free threshold from $1.5 million to $2.5 million is expected to cost around $43 million and will be fully costed by Treasury prior to the election.
