Australia: Overview of tax measures in 2022-2023 budget (Northern Territory)

Key revenue and tax measures were announced in the 2022-2023 budget

Key revenue and tax measures were announced in the 2022-2023 budget

The Northern Territory government’s budget for 2022-2023 focuses on spending on infrastructure (including building new homes and roads) and investment in new industries to rebuild the economy after the coronavirus (COVID-19) pandemic. However, the budget does not include any new property taxes or levies.

The budget does signal that the government is considering introducing a land tax (which would bring the Northern Territory into line with every other state and territory of Australia which all impose a land tax), by referring to the 2022 Commonwealth Grants Commissioner report which estimated that the government could increase revenue by $81 million through the introduction of a land tax.

In addition, the following key revenue and tax measures were announced in the budget:

  • A stamp duty exemption will be introduced with effect from 1 July 2022 for eligible individuals who acquire newly developed land from a registered building practitioner on which there is, or will be, a home constructed by the builder. This exemption will be available for five years.
  • The property activation levy (which imposes a charge on vacant land (2%) and unoccupied buildings (1%) in the Darwin central business district) will cease from 1 July 2022. However, the obligation to lodge and pay returns for the 2021-2022 financial year is retained.
  • An adjustment to the indexation of revenue units, penalty units, and monetary units to reflect policy neutral inflation in the Northern Territory for 2022-2023.


For more information, contact a tax professional with the KPMG member firm in Australia:

Sarah Shaw | spshaw@kpmg.com.au

Robert Nguyen | rnguyen11@kpmg.com.au

Jenny Lee | jennylee2@kpmg.com.au

Tessa Livingston | tlivingston1@kpmg.com.au

*$=Australian dollar

 

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