IPA polling shows more support than opposition for tax carve out in Northern Australia

Almost half of young Australians believe there should be a tax carve out for the NT – a move advocates argue could address worker shortages, reduce tax, and encourage investment.

New polling suggests almost half of young Australians believe there should be a tax carve out for the Northern Territory – a move advocates argue could address worker shortages, reduce tax, and encourage investment.

The research, commissioned by conservative think tank Institute of Public Affairs, showed almost three times as many Australians were favourable towards the establishment of a Special Economic Zone (SEZ) for Northern Australia than those opposed.

The 1000 people polled also showed strong support for more government action on developing the region.

“Northern Australia offers a unique opportunity to set the nation up for a period of economic prosperity for the rest of the century,” IPA deputy executive director Daniel Wild said.

Daniel Wild of the IPA

“However, this will only occur if the right policy settings are put in place, with cuts to red tape and taxes that will drive long-term investment.”

The IPA has long championed more industry-friendly tax and trade regulations for Northern Australia, and said the public support “shows the potential to galvanise support and investment from across the nation to build its future”.

Those polled were asked if they would be in favour or opposed to the introduction of a Special Economic Zone with lower taxes to stimulate growth in Northern Australia.

Fifteen per cent opposed, 43 per cent were unsure, and 42 per cent agreed – the percentage of those who agreed rising to 47 per cent when broken into the 25-34 age bracket.

Asked if Australia’s leaders should be more ambitious for the future of Northern Australia, 62 per cent agreed.

Seventy per cent agreed increasing the population of Northern Australia would be good for the region.

While not going as far as advocating for a SEZ, the new Country Liberal government has promised to lobby its federal counterpart to increase the zone tax offset for Territorians.

“Embracing policies such as a Special Economic Zone in Northern Australia will enable policy settings that address worker shortages, reduce tax and red tape burdens,” Mr Wild said.

“A relaxed regulatory environment within a Northern Australia SEZ would reduce red tape on the planning and construction of critical infrastructure, such as houses, roads, schools, and hospitals, making communities viable for the long-term.

“An SEZ that unleashes the economic potential of Northern Australia would go beyond tax policy but would also incorporate separate regulation policies and frameworks.

“Northern Australia — the region encompassing northern Western Australia, the Northern Territory, and northern Queensland — is key in fuelling and sustaining the nation’s economic prosperity through its strong resources and agricultural industries.”