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Alongside Chief Minister Lia Finocchiaro, Treasurer Bill Yan focused on reducing crime and increasing public service employee costs in supporting hospital and correction services.
Northern Territory net debt will rise from $10.5b to over $12.2b in 2025-26, forecasted to reach almost $14b by 2028-29.
The Territory’s unemployment rate is estimated to be 5 per cent in 2025-26. Separately, Northern Territory inflation is likely to remain at 2.5 per cent, and interest payments on debt are forecasted to increase from $579m to $679m from this financial year to next. Interest payments are set to be greater than tax income for the first time in 2026-27.
While the Treasurer noted over 70 per cent of the Territory’s revenue comes from the Commonwealth and voiced the need for further national support for nation-building projects, taxation reform, and additional support for international migration to assist with initiatives aimed filling the Territory’s skills and labour gaps.
Total revenue is expected to be $9.13b in 2024-25, increasing by 10 per cent in 2025-26 to $10.04b, with annual growth across the forward estimates averaging 1.7 per cent. GST revenue will continue to be the Territory’s largest revenue source, representing about 47 per cent of the total revenue across the budget cycle. GST revenue is projected to increase from $4.29b in 2024-25 to $5.2b in 2028-29, equating to an average growth of 4.9 per cent per annum.
While taxation revenue is expected to only represent approximately 7.7 per cent of total revenue over the budget cycle, taxation revenue is expected to grow from $797m in 2024-25 to $804m by 2028-29 amounting to growth of 2.5 per cent per annum.
Similarly, mining and petroleum royalties are expected to remain stable on forward estimates, averaging $282m per annum until 2028-29.
In what is expected to provide tax relief and support to charities and not-for-profit entities, the Territory government has announced some modest tax reform measures, specifically the abolition of outdated rules that have previously denied payroll tax and stamp duty exemptions.
Effective from 1 July 2025, amendments to the Payroll Tax Act 2009 (NT) will eliminate the 'commercial or competitive' test that previously blocked payroll tax exemptions for charities and not-for-profits, even when delivering essential services like aged care, disability support, and childcare. For the payroll tax exemption, charities and not-for-profit entities are no longer required to substantiate that wages excluded staff engaging in commercial or competitive activities.
A similar amendment to the stamp duty exemption will be made, whereby these entities will no longer be required to substantiate that acquired property is used solely in a manner that is not commercial or competitive.
The Territory government have made it clear that they have intended to remove unnecessary red-tape in support of the growth of charities and not-for-profits, as well as the alignment of the payroll tax and stamp duty exemptions with other Australian states.
It is estimated that these measures will result in $1.3m per annum of forgone revenue.
If you wish to discuss the Northern Territory announcements, please reach out to a Grant Thornton Partner today.
The Australian Federal Budget for 2026-27 will be handed down in May 2026, the first budget since Labor's re-election in 2025.
In its Budget Reply, the Opposition commits to key spending on healthcare and energy but plans to cut 41,000 public servants and repeal $17.1B in tax cuts, citing fiscal concerns.
With the 2025 Federal Budget confirmed for 25 March, we've got you covered. Check out our Federal Budget hub for our Budget coverage, and make sure you register for our virtual seminar where our panel of experts will dissect the Budget and tax implications for your business.
