• Payroll tax reform introduced last year is bolstering the Territory economy
• Small and medium businesses are taking on more staff and government payroll tax revenue has increased
• Reforms are part of the CLP’s vision to make the Territory the most competitive place to live, work, visit and invest

One year on from the passage of the Finocchiaro CLP Government’s nation-leading payroll tax reforms, the Territory’s economy continues to strengthen, with small and medium businesses benefiting from the conditions needed to grow, invest and create local jobs.

As part of the Payroll Tax Amendment Act, from 1 January 2025, the CLP Government waived payroll tax for Northern Territory employers with taxable wages of up to $2.5 million in 2024-25 – delivering Territorian businesses the highest payroll tax-free threshold in Australia.

Payroll tax exemptions were also provided for wages paid to 3,700 trainees and apprentices, encouraging more local employers to invest in the future of the Northern Territory workforce.

Treasurer Bill Yan said that in the government’s year of growth, certainty and security, rebuilding the economy and supporting small and medium businesses through payroll tax exemptions remains a central pillar of the CLP’s Rebuilding the Economy Strategy.

“We listened to businesses and they told us loud and clear the Territory payroll tax system was holding them back, so we reformed it,” he said. 

He said the payroll tax exemption were seeing real results on the ground. 

“Since we increased the tax-free threshold from $1.5 million to $2.5 million from 1 July 2025, we’ve seen more than 200 businesses see their bottom line improve by an average of $22,000 per business which are huge savings,” he said. 

He said the reforms gave businesses more incentives to take on the next generation of Territory workers. 

“There’s nearly 100 businesses who are now saving nearly $10,000 each in payroll tax employing apprentices and trainees,” he said. 

“That’s a million dollars extra supporting Territorians taking their first steps in the workplace.”

Treasurer Yan said the despite the exemptions, the NT Government saw an increase in payroll tax revenue due to economic growth and businesses taking on staff.

In December 2025, payroll tax collections for 2025-26 totalled $170 million, exceeding the year-to-date forecast by 14% led by the mining, real estate, transport and health care sectors. 

“These numbers show beyond all doubt the CLP Government is putting the Territory on the right path of economic growth by helping small and medium businesses by cutting red tape and reducing their tax burden,” he said. 

“And this gives them additional capital they can use to invest and grow their business,” 

Anthony Reiter, General Manager of DeltaNAE, said the payroll tax waiver was key to helping him attract staff from interstate and consider more apprentices. 

“We’ve been able to increase the rates of pay and encourage a highly skilled workforce to improve the capacity of our business in the Territory,” he said.  

“It’s made a great difference to us and taking apprentices out of the payroll tax equation frees us up with more dollars to seek highly experienced people to bring back into Darwin,” 

“This gives us the confidence to get out there and find the people we need to get the work done.” 

Treasurer Bill Yan said the reforms are part of the CLP’s vision to make the Territory the most competitive place to live, work, visit and invest. 

“2025 was our year of action and laying down the foundations to support Territorians. 2026 is about growing the Territory and continuing the momentum forward," he said. 

“The beating heart of NT economy are small and medium businesses and we continue to work hard supporting them to grow a bigger and better workforce,” 

Source: Northern Territory Government Newsroom