Business news from across the Northern Territory: The latest highlights include the CLP government still seeking solutions for NT’s $9 billion budget shortfall, NT businesses to benefit from significant payroll tax concessions, and NT Tourism aims for a record number of cruise ship arrivals. Also making resource news is APA Group being targeted in a bid to stop its fracking project, Oceana reports progress at its Napperby Project, and Core’s quarter shows positive progress.
Economy
CLP gov’t still seeking solutions for NT’s $9 billion budget shortfall
The NT Government faces a significant debt of $9 billion, an increase of nearly $1 billion from the previous year. The Treasurer’s Annual Financial Report indicated a fiscal deficit of $638 million last financial year despite some slight improvements in financial results. The projected 2023-24 budget debt was adjusted to $9.396 billion, still significantly higher than the $8.291 billion recorded the previous year. Interest expenses have grown to $484 million, now the third largest expense after health and education, and that is expected to rise significantly in the coming years. Treasurer Bill Yan attributed the debt issues to the previous administration and noted that the NT’s debt-to-revenue ratio has exceeded 100 per cent for the first time. While some financial figures appeared better than expected, the situation remains concerning for the Territory’s fiscal health.
NT businesses to benefit from payroll tax concessions
The CLP Government will implement new payroll tax regulations next year, raising the tax-free threshold from $1.5 million to $2.5 million. This change will eliminate payroll tax for about 200 companies and provide an average savings of $22,000 for others with wages of up to $7.5 million. While this is expected to reduce annual revenue by $12 million, it falls short of the projected $56 million budget shortfall. Chief Minister Lia Finocchiaro stated the changes aim to support local businesses and create jobs, with wages for apprentices and trainees exempt from payroll tax. Opposition Leader Selena Uibo praised the efforts but questioned the government’s plan to address the tax revenue gap.
Tourism
NT Tourism aims for a record number of cruise ship arrivals
The NT recorded 131 cruise ship visits in the last financial year, generating $181 million in revenue, primarily through Darwin. For the 2023-24 season, 127 trips are already scheduled for Darwin, including 13 maiden calls. NT Tourism and Hospitality CEO Suzana Bishop highlighted the cruise sector’s significance to the local economy. The upcoming arrival of the Queen Elizabeth, carrying up to 2,068 passengers, emphasises this importance and offers a chance to showcase the region’s culture and natural attractions. Australia’s cruise tourism is experiencing a resurgence, with an overall economic output of $8.4 billion.
Resources
APA Group targeted in a bid to stop fracking pipeline
A coalition of Traditional Owners, doctors, scientists, and over 20 First Nations and civil society organisations has urged APA Group to abandon its plans for a gas fracking pipeline in the NT. The request, supported by a petition of more than 17,000 signatures, comes as major shareholder UniSuper sold a significant portion of its APA shares following pressure from over 1,000 scientists.
Market Forces are advocating for APA to reconsider its pipeline plans, emphasizing the environmental risks, including potential contamination of water supplies and increased greenhouse gas emissions. Additionally, a shareholder resolution has been filed to demand transparency about how APA will manage emissions related to the pipelines. Experts, including Darwin pediatrician Louise Woodward, stressed that fracking poses severe health and environmental risks, calling the project unethical given the current climate crisis.
Oceana reports progress at its Napperby Project
Oceana Lithium Limited has announced substantial progress at its Napperby Project in the NT. The project highlights the region’s potential for lithium, rare earth elements, and uranium. This location is within the resource-rich Arunta Province, renowned for its promising geological formations, and offers strategic advantages. Investors may be particularly interested in its proximity to essential infrastructure and the ongoing exploration activities in the area.
Core’s quarter shows positive progress
Core Lithium is optimistic about a solid financial year in 2024–25, driven by expansions and positive drilling results. The restart studies at the Finniss lithium mine in the NT are on schedule, with the BP33 ore reserve now at 8.7 million tonnes. The company aims to complete the restart in the second half of FY25 and has kept operations ready. Recently, drilling at Shoobridge revealed promising results, indicating multi-commodity potential.
CEO Paul Brown highlighted progress during the September quarter, noting a focus on safety with no recorded injuries or environmental incidents. Additionally, exploration activities and investments in Charger Metals and the Bynoe lithium project have strengthened their land position. Despite some one-time costs, Core says its balance sheet remains strong, and the company is excited about new team members who will aid in the Finniss restart plan.
o a children’s doctor is an expert on fracking, get real Chris, the university scientists are real fools ruining their own superannuation.