The Finocchiaro CLP Government's nation-leading payroll tax reforms have been passed in Parliament.
The passing of the Payroll Tax Amendment Bill 2024 gives local businesses the certainty they need as part of the Government's ongoing efforts to rebuild the economy.
From 1 January 2025, the CLP Government waived payroll tax for Northern Territory employers with taxable wages of up to $2.5 million in 2024-25.
It means the Territory has the highest payroll tax-free threshold in Australia.
Businesses with wage bills between $2.5 million and $7.5 million will see their tax bill decrease from 1 July 2025.
The Payroll Tax Amendment Bill 2024 builds on the waiver by legislating a $2.5 million tax-free threshold and annual deduction with effect from 1 July 2025, saving eligible businesses up to $68,750 per year.
The legislation also introduces a payroll tax exemption for wages paid to 3700 trainees and apprentices, encouraging more local employers to invest in the future of the Northern Territory workforce.
Treasurer Bill Yan said: "For the last eight years Territory businesses have suffered while the former Labor Government was too focused on their pet projects to deliver meaningful relief for Territorians."
"We're not a government that turns a blind eye when businesses are doing it tough and we have committed to 2025 being a year of action, certainty and security," he said.
"We're sending a message to local businesses that we're in this together, and we'll keep doing what it takes to help you grow and thrive as part of our broader economic recovery plan.
"By legislating the payroll tax threshold increase and trainees and apprentices' exemption, we're giving businesses the certainty they need to invest, grow, and create more jobs. We know running a business isn't easy, and this is about putting real savings back into businesses so they can keep moving forward."
Mr Yan added: "These amendments also lift the administrative burden for around 200 businesses, giving them more time to get back to enjoying the Territory lifestyle."
"Our objective is clear; to make the Northern Territory an attractive place to do business, to encourage investment, and to create long-term, sustainable employment for Territorians," he said.
Anthony Reiter, General Manager Delta Electrics NT Pty Ltd, said the payroll tax waiver was a great incentive to support local businesses.
"We have a range of employment opportunities, and like many businesses, we're keen to get more people on the books and these payroll tax changes will allow us to do that," he said.
"We employ a number of apprentices in the electrical and refrigeration field. These skillsets are hard to come by and it's important that we build a local workforce where we can.
"With the payroll tax changes coming into play later this year, that's another incentive to hire more apprenticeships to support our young people and support our workforce."
