Mr WARREN - 2008-05-06
The Chief Minister mentioned that tax relief was an important element of our economic development in the Territory. Can you please advise the House what tax cuts there are in Budget 2008-09?
ANSWER
Madam Speaker, I thank the member for Goyder for his question, because Budget 2008-09 delivers tax cuts for Territory families and Territory business.
Stamp duty has been cut to improve home affordability. There is $12m-worth of stamp duty savings, with reduced stamp duty on the purchase of Territory homes, properties and businesses, along with an increase in the first homebuyer’s tax-free threshold. The first homebuyer tax-free threshold has been increased to $385 000 from $350 000. The new minimum stamp duty rate is 1.5%, down from 2.1%. The maximum rate has been reduced to 4.95%, down from 5.4%, which applies to properties valued above $520 000; a change in the threshold from $500 000.
These stamp duty cuts will deliver savings for over 1300 first homebuyers, 1700 other homebuyers, 3400 residential investors, and some 1400 commercial transactions. Along with the expansion of our HomeNorth scheme, the stamp duty cuts make buying a home more affordable for Territory families.
Territory businesses also benefit from the stamp duty cuts. Along with our payroll tax cuts, they help make the Territory the lowest-taxing jurisdiction for small business in Australia. The payroll tax cuts are the fifth payroll tax reduction since 2001, saving Territory businesses an estimated $74m. From 1 July this year, the payroll tax rate will be cut from 6.2% to 5.9%, saving an average of $4500 each year per employer. We are also cutting red tape for businesses by improving the consistency of our payroll tax laws with the other states. This will provide further savings for Territory business and will especially assist businesses that operate across state borders.
These tax cuts improve home affordability, reduce the costs of doing business and help grow our strong economy.
ANSWER
Madam Speaker, I thank the member for Goyder for his question, because Budget 2008-09 delivers tax cuts for Territory families and Territory business.
Stamp duty has been cut to improve home affordability. There is $12m-worth of stamp duty savings, with reduced stamp duty on the purchase of Territory homes, properties and businesses, along with an increase in the first homebuyer’s tax-free threshold. The first homebuyer tax-free threshold has been increased to $385 000 from $350 000. The new minimum stamp duty rate is 1.5%, down from 2.1%. The maximum rate has been reduced to 4.95%, down from 5.4%, which applies to properties valued above $520 000; a change in the threshold from $500 000.
These stamp duty cuts will deliver savings for over 1300 first homebuyers, 1700 other homebuyers, 3400 residential investors, and some 1400 commercial transactions. Along with the expansion of our HomeNorth scheme, the stamp duty cuts make buying a home more affordable for Territory families.
Territory businesses also benefit from the stamp duty cuts. Along with our payroll tax cuts, they help make the Territory the lowest-taxing jurisdiction for small business in Australia. The payroll tax cuts are the fifth payroll tax reduction since 2001, saving Territory businesses an estimated $74m. From 1 July this year, the payroll tax rate will be cut from 6.2% to 5.9%, saving an average of $4500 each year per employer. We are also cutting red tape for businesses by improving the consistency of our payroll tax laws with the other states. This will provide further savings for Territory business and will especially assist businesses that operate across state borders.
These tax cuts improve home affordability, reduce the costs of doing business and help grow our strong economy.
Last updated: 09 Aug 2016