Territory Alliance’s NAIF loan plan to cover payroll tax pause ‘completely off the cards’: Pitt

A PROPOSAL for federal funds by Territory Alliance has been called illegal, nonsensical and “completely off the cards” by the minister in charge

TERRITORY Alliance’s proposal to borrow cash from a federal government infrastructure fund to suspend payroll taxes is illegal, nonsensical and “completely off the cards”, the minister in charge says.

The policy proposal has spurred other major parties to reveal what they would do on payroll tax.

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Territory Alliance leader Terry Mills on Thursday stood by his policy proposal to borrow money from the Northern Australia Infrastructure Facility to make up for the nearly $250m revenue blackhole that would be created by suspending payroll tax for two years.

But Federal Resources and Northern Australia Minister Keith Pitt said the idea was “completely off the charts” ridiculous and would require legislative change that the federal government would not undertake.

Mr Pitt said the NAIF, which had funded projects such as the expansion of the Humpty Doo Barra­mundi Farm, was established to ­deliver construction-style ­projects and drive employment, not “prop up the budgets of ­potential candidates who may or may not form government”.

“It’s more than completely off the cards,” Mr Pitt said.

Keith Pitt, Minister for Resources, Water and Northern Australia.

Mr Mills said Mr Pitt’s ­comments showed he did not have “the capacity to grasp a good idea” and showed “no political will”.

CLP leader Lia Finocchiaro confirmed the party was of the position payroll tax was a “jobs disincentive”.

The party, if it won the ­election, would undertake a ­review, however Ms Fino­cchiaro flagged the Territory’s dire $8.2bn debt, as it meant they “can’t necessarily make the important concessions we want”.

Labor’s position is to keep payroll tax, which is the NT’s second largest slice of own-source revenue behind mining royalties.

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As part of coronavirus assistance measures, the NT government has waived payroll tax for those businesses doing it tough with the move expected to carve $54.4 million out of the Territory’s books this financial year.