The CLP Government is delivering on another election commitment, announcing it will save Territory businesses up to $68,750 every year through payroll tax reforms.
On average, businesses will save $22,000 annually, and payroll tax will be eliminated for about 200 existing businesses, incentivising businesses to employ more people.
Chief Minister Lia Finocchiaro and Treasurer Bill Yan said the changes would give the Territory the highest payroll tax tax-free threshold in Australia, increasing from $1.5 million to $2.5 million.
Employers with wages between $2.5 million and $7.5 million will also see reduced payroll tax.
Payroll tax for businesses with wage bills below $2.5 million will be waived, starting 1 January, 2025 while businesses between $2.5 million to 7.5 million will see their tax bill decrease from 1 July 2025.
"The changes will eliminate payroll tax and red tape for about 200 employers, with another 380 businesses benefiting from reduced taxes," said Mrs Finocchiaro.
"Our government promised we would rebuild the economy, and that is what we're doing."
Treasurer Bill Yan added: "In addition, apprentice and trainee wages will also be exempt from payroll tax from 1 July 2025 as part of the new $2.5 million threshold, saving businesses thousands of dollars more while encouraging them to invest in growing Territory apprenticeships and traineeships."
There are about 3,700 apprentices and trainees in the Territory.
"Our changes mean Northern Territory employers with total payrolls below $2.5 million will not pay payroll tax at all," said Mr Yan.
"To get the Territory's economy moving forward and rebuilding our reputation, we need to be the most competitive place to do business in the country."
Plumbing Maintenance Services owner Pat Whitehead said as the cost of doing business rises, tax relief in the form of payroll tax cuts were very welcome.
"We have 26 plumbers employed on our books, including apprentices, and this absolutely gives us incentive to grow and employ more people," he said.
"Our wage bill is a huge component of running our business, so to have this relief will not just save jobs, but grow them."
