Mr AH KIT - 1999-08-19
The Chamber of Commerce has supported Labor’s assessment that the Country Liberal Party imposes one of the most hostile payroll tax regimes in Australia. Does the Chief Minister agree that this fuels the higher prices charged by Territory food retailers, and will he make a commitment to reduce the payroll tax burden imposed by his government as a concrete measure to cut Territory food prices?
ANSWER
Mr Speaker, the CLP government has already reduced payroll tax at the last budget. This reduction benefited the best part of 80 businesses in the Northern Territory and also streamlined the whole payroll tax system. I said on that occasion that my aim was to decrease payroll tax further. That is something that will be in discussion during the normal budgetary process.
We must remember at the end of the day that, like other measures, payroll tax is a necessary revenue-raising measure. The government has to raise revenue in order to spend and get infrastructure in place. That’s a simple economic equation. But it is our view - certainly my view - that payroll tax in the Northern Territory needs to be continually assessed to maintain competitiveness with other jurisdictions in Australia. We will continue to do that.
Whether or not payroll tax has any impact on food prices in the Northern Territory, which is where the member is leading, I don’t know. It is one of the issues that I imagine will be in the report on the food prices inquiry, put in place by government. I understand it has been a very thorough investigation and I look forward to seeing in the report whether factors such as payroll tax and electricity charges, as two issues, have a substantial effect on food prices in the Northern Territory.
ANSWER
Mr Speaker, the CLP government has already reduced payroll tax at the last budget. This reduction benefited the best part of 80 businesses in the Northern Territory and also streamlined the whole payroll tax system. I said on that occasion that my aim was to decrease payroll tax further. That is something that will be in discussion during the normal budgetary process.
We must remember at the end of the day that, like other measures, payroll tax is a necessary revenue-raising measure. The government has to raise revenue in order to spend and get infrastructure in place. That’s a simple economic equation. But it is our view - certainly my view - that payroll tax in the Northern Territory needs to be continually assessed to maintain competitiveness with other jurisdictions in Australia. We will continue to do that.
Whether or not payroll tax has any impact on food prices in the Northern Territory, which is where the member is leading, I don’t know. It is one of the issues that I imagine will be in the report on the food prices inquiry, put in place by government. I understand it has been a very thorough investigation and I look forward to seeing in the report whether factors such as payroll tax and electricity charges, as two issues, have a substantial effect on food prices in the Northern Territory.
Last updated: 09 Aug 2016