The Northern Territory Budget has targeted support for small business, homeowners and infrastructure in a big-spending budget that is predicted to see debt blow out to $2.2 billion in 2013-14

 

Budget initiatives include $6.6 million in payroll tax cuts;  BuildBonus, a grant for homebuyers; a total spend of $1.5 billion in infrastructure; and record spending on health, education and police, fire and emergency services.

 

From 1 July the payroll tax rate will be cut from 5.9% to 5.5%; the payroll tax-free threshold will be lifted from $1.25 million to $1.5 million and the payroll tax threshold will change to an annual deduction reducing by $1 for every $4 in wages paid above the threshold.

 

BuildBonus is a $10,000 grant to homebuyers to build or buy a new house or unit to the value of $530,000, including house and land packages and unit purchase off the plan. BuildBonus applies from now for contracts signed to the 31 December 2011, where construction has commenced from 3 May 2011.

 

HomestartNTprice caps and income levels are also lifted to increase access to affordable housing, to give low to middle income earners access to 40 per cent of the market with mortgage repayments no more than 30 per cent of income.

 

Infrastructure spending will include:

 

  • $539 million for housing across the Territory
  • $375 million for power, water and sewerage
  •  $307 million for roads,
  •  $193 million for health infrastructure
  •  $110 million for education infrastructure
  •  $61 million for police, fire and emergency services infrastructure.

 

Treasurer Delia Lawrie said the $1.5 billion infrastructure funding will support 3000 jobs across the construction sector.

 

The NT budget totals $5.3 billion, and with reducing GST revenues since the last budget the government is estimating the cash deficit for 2010-11 at $295 million, rising to an estimated $387 million in 2011-12, decreasing to $195 million in 2014-15.

 

The Territory’s economy is predicted to grow by 3.2 % in 2011-12.