Who are the Winners and who are the Losers out of NT Budget 2020/21

THE NT Government has released its first pandemic-era budget as it recovers from the economic sledgehammer which was coronavirus. But who benefits from it? Here’s a quick guide on the WINNERS AND LOSERS of the NT Budget

Chief Minister Michael Gunner with Deputy Chief Minister Nicole Manison, centre, and Health Minister, Natasha Fyles, left, after he delivered the NT Budget. Picture: Che Chorley

• Chief Minister Michael Gunner’s first budget speech as Treasurer
• NT Budget: Gunner to unveil wage subsidies for small businesses
• Stamp duty discount for NT first home buyers to be extended
• Red-tape slashing plan to move NT business approvals online

THE NT Government has released its first pandemic-era budget and the Chief Minister is framing it as a financial plan “of its time”, as the jurisdiction recovers from the economic sledgehammer which was coronavirus.

But who benefits from the NT Budget? Here’s a quick guide on the winners and losers of the NT Budget.

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WINNER: Small business

The NT Government is attempting to make itself the “best place to do business” and that means stimulus for small business and a red-tape slashing agenda that includes moving business approvals online.

There’s the $7.8 million “JobMaker Booster”, which extends and pumps up the Federal Government’s hiring credit program even further. But for this to work, business will need to be in a financial position to employ people.

The federal deal provides eligible employers a wage subsidy of $200 a week if they hire a JobSeeker under the age of 30 or $100 if the worker is aged 30 to 35.

The NT will expand on this by topping up the subsidy for the 30 to 35 age bracket by $100 a week and handing out $200 a week if the worker is above 35.

If you own a roadhouse, the government will give you cash to spruce up the place with the $4m “Roadhouses to Recovery Fund”.

Small businesses can also apply for government grants up to $10,000, with a co-contribution, to help reduce their ongoing costs under the $5m “Small Business Saver Grant”.

Then there’s the $5m “Small Business Customer Experience Grant” program, which provides one-off grants of up to $20 000, with a co-contribution, to help small businesses “enhance the direct experience that locals and visitors get from their product or service”.

There’s also a $4m grant program to help small business “pivot” to the new economic environment, a $2m grant program for small business to “improve their financial knowledge and sustainability” and a $2m grant program for small business to “find solutions to supply chain issues”.

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LOSER: Public servants

The Territory’s nearly 22,000 public servants have been asked to forget about a pay rise for the next four years as the government moves to implement a key budget repair measure.

Instead of a 2 per cent a year increase in their wages, public servants will be handed a $1000 bonus each year.

The Territory’s biggest unions, including the Australian Workers Union and the CPSU, have already hit back at the government’s plan, saying this is not what they had discussed as they slammed the move as unbecoming of a Labor government.

The unions argue they were under the impression public servants and frontline workers would be getting a $1000 pay rise each year, which is cumulative, instead of a yearly piss-in-the-wind bonus.

Mr Gunner argues the Territory is at a “crossroads” and there are only two options on the table — take the wage freeze or suffer job cuts.

Asked how many jobs would have to go, Mr Gunner said each public servant was worth $100,000.

The wage freeze measure is meant to save the Territory $424m into mid-2025.

Quick math. If you accept Mr Gunner’s dichotomous argument, that means 424 jobs would have to go.

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WINNER: The environment?

Look, the environment never truly wins BUT those opposed to fracking might delight, momentarily, that the Treasury boffins have not factored in receiving royalty revenue from the onshore gas industry at any point into the forward estimates.

Because they are assuming no gas comes out of the ground from now until at least mid-2025.

Seems contradictory considering the NT Government’s “gas-led recovery” rhetoric.

Chief Minister Michael Gunner said onshore gas royalties aren’t worked into the budget because the boffins are “conservative” and will only include projects that have reached “final investment decision”.

In summary, the NT has the “potential” for a gas-led recovery just like how my mum still has the “potential” to love me unconditionally. Will it happen? Who knows.

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LOSER: Gambling industry

Highly-profitable bookmakers can bet their bottom dollar they’ll be paying more tax from the 2021/22 financial year.

The NT Government will make it law that bookmakers, not just those that deal in racing, will now have to pay tax.

Increasing the pool of those that pay tax, the government argues, means they’ve been able to lower the tax rate from 10 per cent to 5 per cent.

But the maximum amount a bookmaker can pay in tax has also doubled, from about $500,000 a year to $1m.

The measure will lead to an estimated $3m in extra revenue a year for the government.

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WINNER: Former Treasurer and current Deputy Chief Minister Nicole Manison

Every year you’re a government frontbencher without the responsibility of the Budget is a win and it is highly likely Ms Manison, unlike the Chief Minister, managed to get an acceptable amount of sleep this week.