The NT Budget 2015-16 was handed down on Tuesday 28.4.2015. Key revenue measures included:

  • Payroll tax exemption for charities to be tightened – To ensure the exemption for charitable entities is being provided for its intended purpose, the Payroll Tax Act will be amended from 1 July 2015 in 2 key respects: (1) the exemption will be removed for any commercial work, or work performed in competition with the private sector; and (2) bodies that promote trade, industry or commerce, and professional associations, will not be entitled to receive the charities exemption.
  • Payroll tax exemption for apprentices to be abolished – The payroll tax exemption for apprentices and trainees will be abolished from 1 July 2015. The resulting saving to the Budget will instead be passed to employers through a new direct assistance program “Training for the Future” (which comprises a commencement grant, a completion grant and a recommencement grant).
  • Stamp duty changes for life insurance and senior home-buyersStamp duty on life insurance will be abolished from 1 July 2015. Additionally, all life insurance riders, as additional insurance added to life insurance products, will be taxed as general insurance.
  • The Senior, Pensioner and Carer stamp duty concession to assist eligible seniors and concession cardholders to purchase a new home will be increased to id=”mce_marker”0,000 (from $8,500) for transactions entered into from Tuesday 28.4.2015.
  • Gaming tax – From 1 July 2015, Territory casinos will be required to pay the 10% community benefit levy in the same manner as Territory hotels.
  • Other changes – The Budget also contains a range of other minor but not unimportant changes (eg amendments to the Payroll Tax Act “relevant contract” provisions to maintain harmonisation with other States).

[LTN 79, 28/4/15]

FJM Note – limitation to payroll tax exemption for charitable organisations

This amendment would prevent the likes of the Law Institute of Victoria being recognised as a ‘charitable’ institution and getting payroll tax exemption (which it has attempted to do and awaits the Supreme Court’s decision). This limitation follows a similar move by Western Australia.

Legislation introduced

The Revenue and Other Legislation Amendment Bill 2015 (NT) was introduced in the NT Legislative Assembly, on Wed 29.4.2015. It proposes to implement the NT Budget 2015-16 measures announced (see above).

[LTN 80, 29/4/15]