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By: Kristina Popova, David Mullins
06 May 20264 min read
The Finocchiaro Government will deliver net debt of $12.55b for 2026-27, and annual interest on debt is likely to hit $1b. The Territory delivered a general government net operating balance surplus of $95m in 2025-26, which will convert to a deficit of $42m in 2026-27, and a non-financial public sector deficit of $1.06b, which will reduce to $5m by 2029-30.
The Territory’s revenue came in at $10.7b, with nearly $7.7b or 72 per cent sourced from Commonwealth grants. Mining and petroleum royalties continue to provide a significant revenue stream to the Territory, with collections forecasted to rise from $388 million in 2025–26 to $445 million in 2026–27. Economic growth in the Territory was 5.8 per cent, while the unemployment rate was 5.2 per cent.
While a change to the payroll tax rate for large employers has been announced, no other duty or land tax structural reforms were announced.
Effective from 1 July 2026, employers and payroll tax groups with Australia wide wages of $100m or more will be subject to a higher payroll tax rate of 6.5 per cent, up from 5.5 per cent. Employers below this threshold will continue to be taxed at the existing rate. The change is expected to raise approximately $25 million per year from 2026-27, ensuring larger businesses contribute a greater share of payroll tax while maintaining existing thresholds and concessions for smaller employers.
For couples building their first time, the HomeGrown Territory grant of up to $50,000 has been extended to September 2027 to put those funds towards building or buying a new house. Similarly, the FreshStart Territory grant of an amount up to $30,000 towards building new or buying new homes has also been extended to September 2027.
If you wish to discuss the Northern Territory Budget announcements, please reach out to a Grant Thornton Partner today.
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