CLP Cuts Payroll Tax for Charities, Aged Care
The Finocchiaro CLP Government is making it easier for charities and non-profits to operate in the Territory with new payroll tax reforms announced in Budget 2025-26.
From 1 July 2025, outdated rules will be scrapped which blocked payroll tax exemptions for charities and non-profits if their work was considered ‘commercial or competitive’, even when delivering essential services such as aged care, disability support, or childcare.
Treasurer Bill Yan said the changes would cut red tape and support frontline services.
“This means more money going into local services,” said Mr Yan.
“We’re making the system fairer, simpler, and more supportive of the organisations that serve our community.”
The changes will bring the Northern Territory into line with other states and make it easier for charities to grow and invest.
The updated Payroll Tax Act 2009, to be introduced this month, will:
Remove the ‘commercial and competitive’ test for exemptions;Align Territory law with the rest of Australia;Cut red tape for charities and government; andEncourage investment in aged care, disability support and childcare.
Health Minister Steve Edgington said the reform was a big step toward fixing aged care shortages in Darwin and Alice Springs.
“Our government is committed to supporting a strong, sustainable aged care sector,” said Mr Edgington.
“Aged care is a Commonwealth responsibility, and the Northern Territory is not receiving its fair share of funding because there are insufficient registered aged care providers.
“This important change to the Payroll Tax Act 2009 helps create a more attractive environment for aged care providers to step in and invest in the Territory and build the beds that need to be built.
“By reducing financial barriers and broadening eligibility, we’re encouraging more not-for-profit entities to establish services here by improving access and choice for our seniors and ensuring older Territorians receive the quality care they deserve.”
The NT now has the highest aged care occupancy rate in the country and the fewest beds per capita.
In Greater Darwin alone, up to 80 hospital beds are filled daily by long-stay aged care patients, putting pressure on hospitals and limiting access for others.
“This reform helps free up hospital beds, grow the aged care sector, and ensure our seniors get the care they deserve,” said Mr Yan.
This is another step in delivering the CLP Government’s commitment to action, certainty and security for all Territorians.
https://nt.gov.au/