Mrs AAGAARD - 2005-05-03
Today, you told the House that the Martin government is the most tax-reforming government in the Northern Territory’s history. Can you please provide evidence to back up that claim?
ANSWER
Madam Speaker, I thank the member for Nightcliff for her question. It might rile the member for Drysdale for us to keep running this line as the most tax-reforming government in Australia …
Mr Dunham: Highest taxing government ever!
Mr STIRLING: Perhaps we are the second most reforming because they were the most reforming in the sense that they put them up! They increased them year after year after year! Well, not us! We are the most reforming tax government in Territory history in a positive sense.
Mr DUNHAM: A point of order, Madam Speaker! Can I point out that that is inaccurate now or should I wait for a more appropriate time? Do not tell lies, mate.
Madam SPEAKER: You know you can do that later. Let us not have frivolous points of order.
Mr Dunham: He should not make allegations that are untrue.
Madam SPEAKER: Member for Drysdale, cease!
Mr STIRLING: Madam Speaker, the evidence is overwhelming. Budget 2005 outlines tax cuts worth $40m, coming on the back of tax cuts this government has already made of $40m. In every budget since we took office in 2001, we have cut payroll tax. In two budgets, we cut the rate from 6.5% - probably the highest in Australia which we inherited from the CLP - to 6.2% and, in the two most recent budgets, we will more than double the threshold from $600 000 when we came into government in 2001 - that would have been the lowest threshold in Australia - to $1.25m from 1 July 2006.
That is equal to the best threshold in Australia. A locally-based Territory business with a $1.25m payroll will pay no payroll tax from 1 July 2006 compared with the year 2000 when they would have paid, under the CLP, $42 900. They will pay no tax from 1 July 2006: $42 900 back in the pocket of business to allow them to continue to grow and expand their business without fear they are going to be caught by that payroll tax.
In the year 2000, a business with a $2m wages bill would have paid $92 400 in payroll tax. Talk about the highest taxing government in Australian history - that is where it was in 2000; it was the highest taxing government ever in the Northern Territory. A business with a $2m wages bill would have paid $92 400 in payroll tax. From 1 July 2006, that business will pay $46 500, a tax cut of $45 900 per year back to business to continue to grow, invest in their business, more jobs for Territorians and more skills. It is a substantial saving to business, and it puts NT locally-based businesses at a very competitive advantage with their interstate counterparts.
We have also attacked stamp duty. We have lifted the tax-free threshold on conveyances of first home buyers from $80 000 when we came to office to $125 000 in 2002, and to $200 000 this year. Territorians will pay nothing on the purchase of their first home if it is under $200 000.
We have introduced the $1500 rebate on stamp duty if you are buying your own place of residence. We have laid out a plan to remove the stamp duty from leases, unquoted marketable securities, hiring stamp duties, and the non-real aspects of non-residential conveyances. We have relayed that to the Commonwealth and we had no answer saying they are not going to accept that.
We now have the lowest taxes for all business with up to 100 staff. We have abolished bank account taxes, debits tax and electronic debits transaction duty. I wonder who introduced those taxes into the system? Of course, it was the Country Liberal Party. It has been a substantial effort and one that has been carefully planned to match our commitments to infrastructure spending, and spending on services and skilling Territorians. It stands in stark contrast to the efforts of the previous government.
In their final term of office, the CLP increased the following taxes and charges on Territorians and businesses: they put a superannuation and fringe benefits contribution into payroll; increased domestic power prices by 7.2%, then 9%; increased commercial power prices by 5.7%; increased water costs by 18.2%; increased the hiring duty rate from 1.5% to 1.8%; increased the general insurance duty rate from 8% to 10%. They tried to sneak away with that at the time of the introduction of the GST so they could blame the GST. It had nothing to do with the GST; it was these clowns here seeking to pour ever more money out of the pockets of Territorians to try to fill their black hole that they were creating year in and year out. They included both the purchase of a Crown leasehold convertible to freehold, and the purchase of Crown leasehold to freehold as liable to conveyance stamp duty.
The Leader of the Opposition has no credibility to talk tax when he presided over a government - he had two-and-a-half years as Chief Minister to go to Cabinet every week and say: ‘Enough of this. Enough of this; let us cut taxes’. Did we hear it from the Chief Minister of the day? Two-and-a-half years. No credibility; he is simply unbelievable. He had the opportunity, and his predecessors before him had the opportunity to do it for 26 years, and they did not.
ANSWER
Madam Speaker, I thank the member for Nightcliff for her question. It might rile the member for Drysdale for us to keep running this line as the most tax-reforming government in Australia …
Mr Dunham: Highest taxing government ever!
Mr STIRLING: Perhaps we are the second most reforming because they were the most reforming in the sense that they put them up! They increased them year after year after year! Well, not us! We are the most reforming tax government in Territory history in a positive sense.
Mr DUNHAM: A point of order, Madam Speaker! Can I point out that that is inaccurate now or should I wait for a more appropriate time? Do not tell lies, mate.
Madam SPEAKER: You know you can do that later. Let us not have frivolous points of order.
Mr Dunham: He should not make allegations that are untrue.
Madam SPEAKER: Member for Drysdale, cease!
Mr STIRLING: Madam Speaker, the evidence is overwhelming. Budget 2005 outlines tax cuts worth $40m, coming on the back of tax cuts this government has already made of $40m. In every budget since we took office in 2001, we have cut payroll tax. In two budgets, we cut the rate from 6.5% - probably the highest in Australia which we inherited from the CLP - to 6.2% and, in the two most recent budgets, we will more than double the threshold from $600 000 when we came into government in 2001 - that would have been the lowest threshold in Australia - to $1.25m from 1 July 2006.
That is equal to the best threshold in Australia. A locally-based Territory business with a $1.25m payroll will pay no payroll tax from 1 July 2006 compared with the year 2000 when they would have paid, under the CLP, $42 900. They will pay no tax from 1 July 2006: $42 900 back in the pocket of business to allow them to continue to grow and expand their business without fear they are going to be caught by that payroll tax.
In the year 2000, a business with a $2m wages bill would have paid $92 400 in payroll tax. Talk about the highest taxing government in Australian history - that is where it was in 2000; it was the highest taxing government ever in the Northern Territory. A business with a $2m wages bill would have paid $92 400 in payroll tax. From 1 July 2006, that business will pay $46 500, a tax cut of $45 900 per year back to business to continue to grow, invest in their business, more jobs for Territorians and more skills. It is a substantial saving to business, and it puts NT locally-based businesses at a very competitive advantage with their interstate counterparts.
We have also attacked stamp duty. We have lifted the tax-free threshold on conveyances of first home buyers from $80 000 when we came to office to $125 000 in 2002, and to $200 000 this year. Territorians will pay nothing on the purchase of their first home if it is under $200 000.
We have introduced the $1500 rebate on stamp duty if you are buying your own place of residence. We have laid out a plan to remove the stamp duty from leases, unquoted marketable securities, hiring stamp duties, and the non-real aspects of non-residential conveyances. We have relayed that to the Commonwealth and we had no answer saying they are not going to accept that.
We now have the lowest taxes for all business with up to 100 staff. We have abolished bank account taxes, debits tax and electronic debits transaction duty. I wonder who introduced those taxes into the system? Of course, it was the Country Liberal Party. It has been a substantial effort and one that has been carefully planned to match our commitments to infrastructure spending, and spending on services and skilling Territorians. It stands in stark contrast to the efforts of the previous government.
In their final term of office, the CLP increased the following taxes and charges on Territorians and businesses: they put a superannuation and fringe benefits contribution into payroll; increased domestic power prices by 7.2%, then 9%; increased commercial power prices by 5.7%; increased water costs by 18.2%; increased the hiring duty rate from 1.5% to 1.8%; increased the general insurance duty rate from 8% to 10%. They tried to sneak away with that at the time of the introduction of the GST so they could blame the GST. It had nothing to do with the GST; it was these clowns here seeking to pour ever more money out of the pockets of Territorians to try to fill their black hole that they were creating year in and year out. They included both the purchase of a Crown leasehold convertible to freehold, and the purchase of Crown leasehold to freehold as liable to conveyance stamp duty.
The Leader of the Opposition has no credibility to talk tax when he presided over a government - he had two-and-a-half years as Chief Minister to go to Cabinet every week and say: ‘Enough of this. Enough of this; let us cut taxes’. Did we hear it from the Chief Minister of the day? Two-and-a-half years. No credibility; he is simply unbelievable. He had the opportunity, and his predecessors before him had the opportunity to do it for 26 years, and they did not.
Last updated: 09 Aug 2016