Mr BONSON - 2006-05-03
Can the minister advise the House how Budget 2006-07 will help Territory business grow into the future?
ANSWER
Madam Speaker, I thank the member for Millner for his question. This is one of the priority areas in this budget, and is all about supporting our business community to take advantage of an expanding economy across the Northern Territory. We have a multifaceted approach to try to give our Territory-based businesses the capacity and the opportunity to take advantage of the investment that is occurring right across the Territory.
This approach includes reducing taxes, providing high levels of infrastructure spending, and investing in strategic economic drivers. The Treasurer has said and, as Business minister I support his statements, that Budget 2006-07 delivers further tax cuts for business. Something we should all be proud of as Territorians is that the Territory is now officially the lowest taxing jurisdiction anywhere in Australia for small businesses that employ 100 people or fewer. The vast majority of our businesses fall into that category. This government is providing them with a really competitive edge in a global business environment.
This budget brings to $74m the total tax reduction provided by the Martin government for Territory business. What this means - and I am not an economist but I am learning - is that $74m which would otherwise have flown to Treasury coffers is now available for the consumption side of the economy; extra expenditure in the economy, further supporting small business. We have made commitments of a further $134m in reductions to come over the next few years.
The payroll tax reform is very much supported by the business community. Both at the Chamber of Commerce lunch yesterday and the Property Council breakfast today, everybody was welcoming the payroll tax reforms, taking the threshold to $1.25m this year. This means that 187 predominantly Territory-based businesses which were paying payroll tax under previous CLP governments are no longer paying payroll tax under this Labor government. Those businesses still paying that tax, which are the vast majority of businesses that operate not only in the Territory but across state borders, are seeing a total savings of some $66 000.
Ms Carney: Biggest taxing government the Territory has every seen. You are taxing them more than they have ever been taxed before. You are in denial.
Madam SPEAKER: Order!
Mr HENDERSON: I know the Leader of the Opposition does not like to hear this. She does not like to hear good news. I think the Leader of the Opposition is allergic to good news! She shuns it and puts up a shield around her. She is allergic to good news. I can tell her she needs to go and talk to the business community. Was the Leader of the Opposition at the Chamber of Commerce lunch? I do not think I saw her there. Was she at the Property Council breakfast? I challenge you to go to the TCA breakfast tomorrow morning. Get out and meet some business people and talk to them. They will tell you they support this government’s payroll tax reductions that we have applied over the last few years.
Budget 2006-07 also sees the removal of stamp duty on unquoted marketable securities and on leases and franchises. This is very important. There are more and more people starting a business which is a franchise business. Many businesses are now franchise businesses. No longer will people have to pay stamp duty on those franchises.
As well as taxes, there is a big spend on infrastructure this year of $482m. $100m will be spent on the waterfront and convention centre. We know the opposition did not like the convention centre being at the waterfront, but this going to be a major benefit …
Ms Carney: It was our idea. You have amnesia. Come on, pick up the plans.
Mr HENDERSON: ‘It was our idea’! They wanted to put it next to Woolies in town, Madam Speaker.
It is of major benefit, bringing professional people and businesses to the Territory. We will see further investments in the Territory as a result of the convention centre, as well as a big boost to the tourism industry. The record spending means more work for local businesses and more jobs for Territorians, and we will keep on heading down that path for the rest of this term.
ANSWER
Madam Speaker, I thank the member for Millner for his question. This is one of the priority areas in this budget, and is all about supporting our business community to take advantage of an expanding economy across the Northern Territory. We have a multifaceted approach to try to give our Territory-based businesses the capacity and the opportunity to take advantage of the investment that is occurring right across the Territory.
This approach includes reducing taxes, providing high levels of infrastructure spending, and investing in strategic economic drivers. The Treasurer has said and, as Business minister I support his statements, that Budget 2006-07 delivers further tax cuts for business. Something we should all be proud of as Territorians is that the Territory is now officially the lowest taxing jurisdiction anywhere in Australia for small businesses that employ 100 people or fewer. The vast majority of our businesses fall into that category. This government is providing them with a really competitive edge in a global business environment.
This budget brings to $74m the total tax reduction provided by the Martin government for Territory business. What this means - and I am not an economist but I am learning - is that $74m which would otherwise have flown to Treasury coffers is now available for the consumption side of the economy; extra expenditure in the economy, further supporting small business. We have made commitments of a further $134m in reductions to come over the next few years.
The payroll tax reform is very much supported by the business community. Both at the Chamber of Commerce lunch yesterday and the Property Council breakfast today, everybody was welcoming the payroll tax reforms, taking the threshold to $1.25m this year. This means that 187 predominantly Territory-based businesses which were paying payroll tax under previous CLP governments are no longer paying payroll tax under this Labor government. Those businesses still paying that tax, which are the vast majority of businesses that operate not only in the Territory but across state borders, are seeing a total savings of some $66 000.
Ms Carney: Biggest taxing government the Territory has every seen. You are taxing them more than they have ever been taxed before. You are in denial.
Madam SPEAKER: Order!
Mr HENDERSON: I know the Leader of the Opposition does not like to hear this. She does not like to hear good news. I think the Leader of the Opposition is allergic to good news! She shuns it and puts up a shield around her. She is allergic to good news. I can tell her she needs to go and talk to the business community. Was the Leader of the Opposition at the Chamber of Commerce lunch? I do not think I saw her there. Was she at the Property Council breakfast? I challenge you to go to the TCA breakfast tomorrow morning. Get out and meet some business people and talk to them. They will tell you they support this government’s payroll tax reductions that we have applied over the last few years.
Budget 2006-07 also sees the removal of stamp duty on unquoted marketable securities and on leases and franchises. This is very important. There are more and more people starting a business which is a franchise business. Many businesses are now franchise businesses. No longer will people have to pay stamp duty on those franchises.
As well as taxes, there is a big spend on infrastructure this year of $482m. $100m will be spent on the waterfront and convention centre. We know the opposition did not like the convention centre being at the waterfront, but this going to be a major benefit …
Ms Carney: It was our idea. You have amnesia. Come on, pick up the plans.
Mr HENDERSON: ‘It was our idea’! They wanted to put it next to Woolies in town, Madam Speaker.
It is of major benefit, bringing professional people and businesses to the Territory. We will see further investments in the Territory as a result of the convention centre, as well as a big boost to the tourism industry. The record spending means more work for local businesses and more jobs for Territorians, and we will keep on heading down that path for the rest of this term.
Last updated: 09 Aug 2016