In brief
The 2026-27 Northern Territory Budget was delivered on 5 May 2026 by the Northern Territory (NT) Treasurer, the Hon. William (Bill) Yan MLA.
The Budget is framed as the continuation of the Finocchiaro Government's economic plan, with community safety and law and order identified as the Government's number one priority. $1.7bn has been committed to public order and safety, alongside significant investment in health, education, housing, flood recovery and cost-of-living relief. The Budget also responds to recent natural disasters, including the Katherine floods and other significant weather events.
Several targetted revenue measures were announced including an increased in the payroll tax rate for large employers, a 12-month extension of the HomeGrown Territory grant scheme and cessation of the stamp duty concession for certificates of registration for plug-in electric vehicles on 30 June 2027.
In detail
Budget overview
The general government sector net operating balance is projected by the Government to improve to a surplus of $95.0m in 2025-26, before returning to a modest deficit of $42.0m in 2026-27 and then to net surpluses from 2027-28 across the forward estimates.
Non-financial public sector net debt is projected to be $11.35bn in 2025-26, rising to $12.56bn in 2026-27 and stabilising at around $13.2bn across the forward estimates from 2027-28. The improved trajectory has been supported by an expected uplift in GST revenue as well as stronger revenue and royalty returns.
Gross State Product is forecast to grow by 2.7% in 2025-26 and 5.8% in 2026-27, driven primarily by a growth in exports with the Barossa project in 2025-26 and LNG production from the Ichthys and Darwin LNG facilities from 2026-27, before moderating over the forward estimates.
Revenue measures
The Budget includes a small number of targeted revenue measures with the Treasury Legislation Amendment Bill 2026 (NT) being introduced to give effect to some of the below measures.
Payroll tax rate increase for the largest employers
From 1 July 2026, a higher payroll tax rate of 6.5% will apply to employers, and members of payroll tax groups, with Australia-wide taxable wages of $100.0m or more per annum. This is a 1 percentage point increase on the existing standard rate of 5.5%, which will continue to apply to employers below that monetary threshold.
The Budget papers state that the higher rate is designed to ensure the largest employers contribute a greater share of Territory revenue and is expected to generate additional revenue of approximately $25.0m per annum from 2026-27. Affected Employers (and members of grouped employer arrangements) should review their payroll tax group structures and the measurement of Australia-wide wages to confirm whether the higher rate applies.
HomeGrown Territory new home grants extended
The Budget extends the HomeGrown Territory grant ($50,000 for first home buyers building or purchasing a new home) for a further 12 months, through to 30 September 2027. The extension is intended to continue supporting new housing supply in the Territory. The grants continue to operate alongside the Territory's existing first home owner settings.
Electric vehicle stamp duty concession to cease
The Budget papers confirm that the existing stamp duty concession for certificates of registration for plug-in electric vehicles will cease on 30 June 2027, consistent with the previously announced five-year sunset. No replacement concession has been announced.
Tax and royalty revenue forecasts included in Budget
Revenue from Territory taxes and royalties is estimated to total $1.29bn in 2025-26 and $1.28bn in 2026-27, before growing modestly across the forward estimates. Taxation revenue (excluding royalties) is expected to total $903m in 2025-26, easing to $833m in 2026-27 as one-off factors in 2025-26 unwind, then growing gradually to around $930m by 2029-30.
- Payroll tax is forecast at $323m in 2025-26 and expected to increase to $342m in 2026-27 reflecting the expected impact of the new 6.5% rate for the largest employers.
- Conveyance (stamp) duty is forecast at $245m in 2025-26, reflecting elevated transaction activity and the impact of extended homeowner grant programs. Revenue is expected to reduce to $144m in 2026-27 as those one-off factors unwind.
- Gambling taxes are forecast at $149m in 2025-26 and $153m in 2026-27, growing steadily over the forward estimates, driven by the continued phase-in of the uniform 50% internet gaming tax rate.
- Stamp duty on insurance policies is forecast at around $83m in 2026-27, with growth expected above historical trends reflecting premium growth and inflation.
- Motor vehicle taxes, comprising motor vehicle registration duty, motor vehicle registration fees and passenger services levy is forecast at $112m in 2026-27. This is expected to grow moderately and reach $122m by 2029-30.
Mining and petroleum royalties are expected to total $445m in 2026-27 reflecting sustained high gold and commodity prices, before easing modestly over the forward estimates.
Contact us
For further information on how these measures may affect you or your business, please contact your PwC adviser or one of the contacts listed below.
Rachael Cullen
Partner, Tax, PwC Australia
Jessica Laird
Director, Tax, PwC Australia
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