Budget Overview.indd - Department of Treasury and Finance

BUDGET OVERVIEW
Contents
Budget Highlights
2
Acknowledgements
Less Tax and Backing Business
4
The photographs in this publication are
reproduced with the kind permission of
Local Jobs and Better Skills
6
Charles Darwin University
Better Schools
8
Department of the Chief Minister
Department of Community Development, Sport
and Cultural Affairs
Department of Employment, Education and
Training
Department of Health and Community Services
Department of Infrastructure, Planning and
Environment
Image: monsoonaustralia.com
Northern Territory Tourist Commission
Regional Highlights
10
A Safer Community
12
Building Healthier Communities
14
Lifestyle and Environment
16
Fiscal and Economic Outlook
18
Darwin City Waterfront
20
Budget
Backing Territorians
The Infrastructure Program
The 2005-06 Budget supports:
Total infrastructure expenditure in 2005-06 is
estimated to be $476 million, including:
• local businesses, by making the Territory the lowest taxing
jurisdiction in Australia for businesses with up to 100 staff;
• a capital works program of $295 million
with estimated expenditure of $192 million
(including a 40 per cent increase in minor
new works to $28.6 million);
• a continued high level of spending on infrastructure and jobs;
• new opportunities to build better skills in the Territory
workforce, skilling 10 000 Territorians over the next four years;
• capital grants spending of $43 million;
• record budgets for health, education and police; and
• Power and Water Corporation capital
expenditure of $63 million; and
• the environment and a great lifestyle.
• repairs and maintenance totalling
$170 million (including Power and Water
Corporation).
The Government has also committed at least $10 million to
rebuilding those Territory communities affected by Cyclone
Ingrid.
Less Tax
The 2005-06 Budget outlines tax cuts of
$40 million.
• Homes purchased by first home
buyers from 3 May 2005 will not
attract any stamp duty on the first
$200 000 of the price.
• The payroll tax threshold will increase
from $800 000 to $1 million from
1 July 2005 and $1.25 million from
1 July 2006, reaffirming the Territory
as the lowest-taxing jurisdiction.
Annual recurrent taxes from 1 July 2005
for a business with 50 staff
$000
180
$000
300
160
250
140
120
200
100
150
80
60
100
40
500
20
0
2
Annual recurrent taxes from 1 July 2005
for a business with 80 staff
Vic
NSW
QLD
Tas
Budget Highlights
SA
WA
ACT
NT
0
Vic
NSW
Tas
QLD
ACT
SA
WA
NT
Highlights
Local Jobs and Better Skills
Creating local jobs growth is a key priority. The 2005-06
Budget continues record spending on infrastructure
projects of $476 million that will support local jobs growth,
invest in the construction industry and develop the
economic base of the Territory.
2005-06 Major Works Program
The program is supporting growth in local jobs
through construction of social and economic
infrastructure, and developing the economic base of
the Territory:
• roads and other transport infrastructure –
$80 million;
Over four years, Jobs Plan 2 initiatives will support 10 000
new trainees and apprentices.
• schools – $36 million;
The 2005-06 Budget focuses on building a skilled
workforce. It injects additional funding to support key
jobs programs and $1.5 million will support training linked
to skills shortages in traditional trades, through Charles
Darwin University.
• Desert Knowledge Precinct – $22 million;
Record Budgets: Health,
Education and Police
• health centres and other health facilities –
$10 million;
The Government’s commitment to the key priority areas
of health, education and police is reconfirmed by record
budgets for 2005-06:
• land developments – $3.6 million; and
• housing – $24 million;
• Darwin, Alice Springs and Tennant Creek Hospitals –
$17 million;
• lifestyle and environment – $15 million;
• East Arm and Darwin Business Park – $12 million;
• Darwin City Waterfront site works – $10 million;
• police, fire and emergency services – $4.6 million;
• correctional services – $3.5 million.
• $687 million for health and community services;
• $582 million for employment, education and training;
and
• $189 million for police, fire
and emergency services.
Great Lifestyle
Backing Territorians includes
supporting our great lifestyle, and
the 2005-06 Budget includes:
• $17 million for sports, recreation
and major events;
• over $34 million for arts,
museums and libraries;
• over $105 million for
conservation, parks, natural
resource management,
environment and heritage; and
• over $102 million for Territory
Housing services.
Budget Highlights
3
Less Tax and
$000
20
Stamp Duty for First Home Buyers*
The Budget will outline tax reductions totalling $40 million by
increasing the payroll tax threshold and first home owner stamp duty
concession, and abolishing debits tax and electronic debit transaction
stamp duty. Further reductions will come into effect from 1 July 2006.
15
10
5
0
Less Tax
NSW
Qld
WA
NT
Tas
ACT
SA
Vic
*stamp duty payable on purchase of a median-priced
house for first home buyers as at 1 July 2005
Source: Real Estate Institute of Australia
• An increase in the payroll tax-free threshold from $800 000 to
$1 million from 1 July 2005 will save businesses $3.2 million per year,
sustaining the Territory’s tax regime as one of the most favourable in
Australia for small to medium sized businesses. This means 61 locallybased businesses will no longer pay payroll tax.
• On 1 July 2006, the tax-free threshold will rise again to $1.25 million –
the equal best in Australia. This means 53 more locally-based Territory
businesses will pay no payroll tax after 1 July next year.
Industry Support
• $0.5 million for the Trade Support
Scheme, $0.5 million for overseas trade
offices in Jakarta, Manila and Dili, and
$0.1 million for the Indonesian Customs
Pre-Inspection Facility.
• Almost $15 million to support primary
producers, with research, development
and extension projects, diagnostic
services, infrastructure development
and improved information resources
on land and water use.
• $0.25 million over two years to attract
skilled workers through the Business
and Skilled Migration Strategy.
• Government outsourcing initiatives
foster the growth of local industry,
both in terms of size and capability,
in the areas of information and
communications technology, legal and
audit services.
• Completion of an information and
communications technology industry
strategic plan to deliver employment,
investment and service benefits to the
Territory.
• Support for businesses to identify
opportunities under the AustraliaIndonesia Partnership, the International
Project Network, the Territory’s
International Trade Strategy and with
the Territory’s China partners.
4
Less Tax and Backing Business
• First home buyers will not pay any stamp duty on the first $200 000 of
their new home, on contracts written from 3 May 2005. The value of
the first home owner stamp duty concession will nearly double from
a maximum of $3640 to $6800, providing a further stimulus to the
local residential construction industry, and saving first home buyers
$2.7 million.
• Debits tax and electronic debit transaction stamp duty will be
eliminated from 1 July 2005. Stamp duty on the grant and renewal
of leases and franchises, and stamp duty on unquoted marketable
securities will be abolished from 1 July 2006. These measures will
save Territorians $10.6 million a year.
• Stamp duty will be abolished on hiring arrangements from
1 July 2007 (worth $5.3 million), and on the conveyance of
non-residential property, excluding land, from 1 July 2009
(worth $5.5 million). The abolition of all these taxes is part of
national tax reform.
• Stamp duty exemption for family farms will be extended to
conveyances of primary production property between family
members, family companies and family trusts.
Strategic Funding to Promote Business
• $9.8 million to support continued development of East Arm,
including $1.4 million for oil pipelines to transfer fuel from the new
bulk liquids berth to the terminal, $5.2 million for the bulk loading
facility, $2 million for an incinerator to manage quarantine and
hazardous waste and to complete headworks to the joint user fuel
terminal, and $1.2 million to complete duplication of Berrimah Road
to Cochrane Street.
• $21.9 million for the Desert Knowledge Precinct in Alice Springs.
Backing Business
• $2.15 million for continued development of Darwin Business Park
at East Arm to provide land for industries utilising the rail and port
facilities to create a comprehensive transport hub. Development of a
long-term marketing strategy for disposal of land within the Darwin
Business Park will support the future demands of industry.
Strategic Partnership to
Promote Business Futures
The 2005-06 Budget includes the
Territory’s financial commitment to
the redevelopment of the Darwin City
Waterfront. Contracts with Darwin Cove
consortium are under negotiation and
this Budget heralds the development of
one of the most significant investments
for long-term economic gain the
Northern Territory has ever made.
• $9.8 million in 2005-06 for decontamination and site preparation
works for the Darwin City Waterfront Redevelopment.
• $10 million additional (as part of $27.5 million) in 2005-06 for the
Investing in the Future of the Territory tourism industry program.
• $3.8 million (as part of $15.2 million over four years) for the continued
implementation of Building the Territory’s Resource Base to provide
pre-exploration information, assist in access to land for minerals
and petroleum exploration and production, and promote the
prospectivity of the Territory’s mineral and petroleum resources.
• Continued funding to address antisocial behaviours that have a
negative effect on businesses.
• $4.7 million for continued upgrading of beef roads to improve
transport conditions for the pastoral industry.
• New funding of $0.9 million over three years, in addition to
$3.8 million ongoing, to boost Indigenous business development.
Economic Recovery
Over the past two to three years, the Territory economy has recovered
from a period of flat growth, returning to solid growth in recent times,
initially boosted by the work for the Alice Springs to Darwin railway,
and since supported by low interest rates and Government incentives
to encourage home ownership.
no.
600
Housing Finance Commitments
for Owner-Occupiers*
500
400
300
200
Property markets have improved, with house prices strengthening and
residential vacancies falling.
100
Population growth is improving, supported by employment for large
projects, and tourism
is starting to recover,
Sales of New Motor Vehicles*
9 500
supported by the Ghan
9 000
passenger rail service
and increased domestic
8 500
airline seating capacity.
Source: ABS Cat. No. 5609.0
8 000
Business confidence
has strengthened in
line with the improved
prospects for the
onshore economy.
0
98
99
00
01
02
03
Year ended June
04
05
*monthly trend
Business Confidence*
net balance
80
70
60
50
40
30
7 500
20
10
7 000
98
0
99
00
01
02
03
Year ended June
Source: ABS Cat. No. 9314.0.55.001
04
05
*moving annual total
98
99
00
01
02
Year ended June
Source: Sensis Business Index
03
04
05
*moving annual average
Less Tax and Backing Business
5
Local Jobs and
The Jobs Plan
The 2005-06 Budget implements Jobs Plan 2, which delivers new
strategic initiatives in jobs and training to ensure that Territorians reap
the rewards of economic development and prosperity.
Jobs Plan 2 – Building the Northern Territory Workforce – improves on
Jobs Plan 1 by enhancing training and skill development, supporting
apprentices and trainees, and providing incentives for both employers
and employees. An additional $2 million is provided ongoing from
2005-06 under Jobs Plan 2, totalling $3.58 million allocated in 2005-06
to implement both Jobs Plan schemes.
Each year 250 incentives valued at $3000 each will be available to
small businesses to take on a trainee or apprentice and another
150 incentives per year valued at $7000 each will be available to
employers to take on an apprentice in a traditional, hard-to-fill trade.
The 2005-06 Budget continues the Government’s commitment
to boosting the Territory’s population and building the Territory’s
skills base.
Jobs and Training
Building Skills for Local Jobs
• Work Wear Work Gear: $300 to every new trainee and apprentice
to help them get started in their career and $500 for apprentices
in hard-to-fill trades. This bonus can be used to buy work clothing,
boots, tools and other equipment needed for their new trade.
• Forty new VET scholarships per year for course and material fees,
each worth $4000, will be available to assist students studying
Certificate III up to Diploma level courses with registered training
organisations.
• Work Ready NT program invests an extra $200 000 to assist
secondary students with the transition from the classroom to
the workforce. These funds will be industry driven and directed
towards skills shortage areas.
• Build Skills NT program backs Territorians already in work by
upgrading their skills through training. Funding of $0.5 million
will be allocated
to industry to train
existing workers
in the automotive,
building,
construction,
hospitality and
mining industries.
• $58.85 million for the Charles Darwin
University, Batchelor Institute of Indigenous
Tertiary Education and other service
providers to deliver a broad range of
vocational education and training programs
in urban and remote settings, building skills
that lead to employment.
• $0.98 million will fund 200 extra public sector
trainees.
• $0.4 million for pre-employment programs
that provide training for unemployed,
unskilled or semi-skilled Territorians to assist
them enter the workforce or prepare them
for an apprenticeship or traineeship.
• $0.2 million to assist secondary students with
the transition from school to work in areas of
greatest skill need.
• Ongoing occupational health and safety
training for industry, employers and
employees.
• Student Teacher Bursary Scheme –
$3.43 million since 2001-02.
6
Local Jobs and Better Skills
Better Skills
• $1 million for training and development
opportunities for remote public sector
employees to attract staff and improve
retention, particularly nurses and teachers.
Tertiary Education
• An additional $1.5 million per year from
2005-06 to address skills shortages in the
trades labour force by providing additional
VET funding to Charles Darwin University,
taking the University’s total base VET
funding to $35.2 million.
• $6.55 million for higher education at Charles
Darwin University.
Training for Remote Workers
The 2005-06 Budget includes $4.4 million to develop better skills for
Territorians living in remote areas, including:
• Flexible Response Funding of $1.8 million to deliver accredited and
non-accredited training or employment on site in remote
communities;
• $1 million for the Training for Remote Youth (TRY) program
for structured training of 14 to 19 year olds living in remote
communities who are not in school, with the aim of re-engaging
them in training and learning;
• $1.3 million for regional and remote training centres; and
• $0.3 million for the Community Response Program, giving remote
Territorians work-ready skills such as driver training and first aid
training.
• $9.6 million for Batchelor Institute for
Indigenous Tertiary Education to deliver
vocational education and training.
• $2.6 million VET infrastructure funding for
Charles Darwin University.
• $12.45 million to construct the new Desert
People’s Centre including Learning Themes
buildings, ablutions block, canteen and
reception.
• 40 VET scholarships worth $4000 each.
• Ongoing support for assistance to tertiary
level students.
10 000 More Trainees and Apprentices
One initiative under Jobs Plan 2 is to encourage
the employment of additional apprentices and
trainees.
• $1.37 million in incentives to private and
community sector employers to increase the
uptake of apprentices and trainees, particularly
in traditional trades and small business.
• 200 more apprentices and trainees
commenced in 2004 than in 2003.
• 2512 new apprentice and trainee
commencements in 2004.
• Preliminary March quarter 2005 figures
indicate that there are 3136 apprentices and
trainees currently in training, an increase of
600 since March quarter 2001.
Local Jobs and Better Skills
7
Better
VET in Schools
The 2005-06 Budget includes
$4.4 million for the VET in Schools
Program, which is expected to prepare
1100 students for vocational education
and training (VET) while still at school,
and support them in gaining the skills
they need to move into the Territory
workforce. The program includes:
• $2.27 million to provide VET courses
in schools and careers advice;
• $0.95 million to expand VET under
Building Better Schools;
• $0.2 million for school to work
transition, which involves training in
work placements for students while
continuing their normal studies; and
• $1 million for driver training and
licensing for 16 to 18 year olds.
Education Services
In 2005-06 the Government continues its key priority commitment to
better schooling, through:
• $266 million for early childhood and primary education in
Government schools;
• $139 million for Government secondary schools;
• $4.4 million for VET in Schools; and
• $81 million assistance for non-government schools.
Initiatives include:
• $42 million over four years to implement Building Better Schools to
improve the quality and delivery of secondary education programs in
urban, rural and remote communities. In 2005-06, $9.42 million has
been allocated to implement a wide range of activities including:
- qualified counsellors and careers advisers for all secondary schools;
- improving vocational education and training (VET) programs in
secondary schools;
- supporting teachers and educators with opportunities to develop
and share good teaching and learning practices;
- improving Indigenous students’ educational outcomes and
providing 20 specialist teachers for face-to-face teaching in remote
schools;
- establishing an interactive distance learning studio at Katherine
School of the Air; and
- conducting a Chief Executive’s Student Forum.
• $6.38 million in 2005-06 to address emerging needs of teachers,
educators and students to improve access to curriculum resources
and professional development. Specifically, this includes:
Remote Schools Program
Almost $4.5 million to upgrade remote
schools, including:
• Mamaruni school at Minjilang, Croker
Island;
• Donyddji Homeland Centre;
• Mapurru Homeland Centre; and
• Gunbalanya Community Education
Centre.
$2.4 million of works will continue on:
• Shepherdson College;
• Manyallaluk Homeland Centre; and
• Emu Point Homeland Centre.
8
Better Schools
- recurrent funding of $2 million for the continued expansion of the
Accelerated Literacy Program to accelerate the literacy skills of
marginalised learners who have failed to make appropriate literacy
gains in schools. The aim is to increase the program roll-out for up
to 100 schools, involving 10 000 students and 700 teachers, by the
end of 2008;
- $2.56 million a year for Aboriginal and Islander Education Workers
in urban schools who assist with increasing Indigenous student
enrolment, attendance and retention, literacy, numeracy and other
educational outcomes;
Schools
- a further $0.5 million to upgrade furniture for teachers
housed in remote communities;
- an additional $0.5 million for equipment needs in
Territory schools and community education centres;
and
- $1.57 million as part of a $5 million program to provide
a laptop computer for every Government school
classroom teacher to strengthen computer literacy and
improve access to online school resources.
• an additional $1.34 million ongoing for non-government
schools, including an additional $1.17 million recurrent
for educational costs associated with curriculum, special
student services and information technology;
• $0.61 million for extending the current year 3 and 5
literacy and numeracy testing program to year 7; and
• recruitment of 100 additional teachers at a cost of
$25.8 million since 2001-02.
Education Infrastructure
Education facilities will be improved in urban and remote
settings with $74.3 million in ongoing infrastructure
projects, including $54.8 million for capital works and
$19.5 million for repairs and maintenance:
• $4.6 million for Parap Primary School redevelopment
works;
• $8.5 million for Darwin High School redevelopment
works;
• $2.24 million for a new science block and classrooms at
Wadeye;
• $0.84 million for arid region schools airconditioning
upgrades at Ross Park and Gillen;
• $10 million for continuing progress towards a new senior
secondary facility at Palmerston; and
• $2.05 million for ongoing redevelopment of Alawa and
Nakara Primary Schools.
Capital assistance of $0.17 million will be provided in
2005-06 for Essington, St Johns and O’Loughlin nongovernment schools and for land for the Alice Springs
Steiner School.
Better Schools
9
Regional
Darwin
• New Darwin soccer stadium
• New fire station at Marrara
• Darwin City Waterfront
Redevelopment site preparation
and headworks
• Establish community-based
residential mental health facilities
• Palmerston Recreation Centre –
capital grant
• Batten Road – service five new
blocks for use by community
organisations
• Traffic management
improvements on Darwin urban
arterial roads
• Hidden Valley Raceway – eight
new pit garages to support
V8 Supercars
• Refurbish Casuarina Plaza in
Darwin to improve occupational
health and safety for Health and
Community Services staff
• Parap Primary School – further
redevelopment works
• Stokes Hill Wharf – dedicated jetty
for Customs small craft
• Darwin High School – further
redevelopment works
• Shopping centre upgrades at
Jingili, Nightcliff and Wulagi
Palmerston and Litchfield
• East Arm – continuing works on fuel
pipelines and terminal, bulk loading
facility, quarantine and hazardous
waste incinerator and Darwin
Business Park
• Continue undergrounding of
powerlines
• Darwin Correctional Centre –
new program
and living unit
Katherine
facilities
• Upgrade the Pigeon Hole aerodrome
• Works at Territory
• Remote Schools Program – complete works at Manyallaluk
Wildlife Park
Homelands Centre
Darwin
Palmerston
and Litchfield
Top E
Rural
• Victoria Highway – floodplain upgrade of Victoria River, Joe
Creek, Lost Creek and Sandy Creek
• Upgrading beef roads – selected sections of Buntine Highway
• Road upgrade – Lajamanu to Tennant Creek via Warrego Road
• Cyclone Ingrid restoration works to Buntine Highway
Alice Springs
• Desert Knowledge Precinct Business and
Innovation Centre and Desert People’s Centre
Learning Themes buildings
• West MacDonnells National Park – upgrade and
expand existing visitor facilities
• Alice Springs Drag Strip – capital grant for new
raceway
• Continued development of the Mereenie Loop
• Beef road upgrade – Maryvale Road
• Headworks to the Larapinta residential
subdivision
• Pastoral research facility at Owen Springs Station
• Establish community-based residential mental
health facilities
• Upgrade Stuart Lodge for Community Harmony
Strategy
• Alice Springs Hospital – fire safety compliance
and remediation
• Refurbish Centrelink building in Alice Springs
to improve occupational health and safety for
Health and Community Services staff
• Sandover Highway – upgrades to sections to
improve accessibility to region
• Airconditioning upgrade – Ross Park Primary
and Pre-school
• New renal facilities at Flynn Drive and Alice
Springs Hospital
10
Regional Highlights
Kather
• General purpose public housing in Alice Springs
• Alice Springs Hospital staff accommodation
upgrade
• Areyonga – new bores and rising main
• Alice Springs Desert Park – exhibit
improvements
Alice
Highlights
Top End Rural
• Six new teacher residences at Wadeye
• Continued development of the Litchfield Loop
• Upgrades to rural arterials including the Arnhem
Highway
• Upgrade Gunbalanya Community Education Centre
• Beef road upgrade – Point Stuart Road
• Cyclone Ingrid restoration works including
construction of new Mamaruni School on Croker
Island and health centre at Minjilang
• A new science block and classrooms at Wadeye
• Litchfield National Park visitor and commercial
facilities upgrade
• Mary River Wetlands desalination work
• Ranger accommodation, visitor facilities and road
access at the new Channel Point Reserve
• Complete new health centres at Milikapiti and
Daly River
• Indigenous essential services works on infrastructure
works at Peppimenarti, Belyuen, Daly River, Nguiu,
Palumpa and Minjilang
East Arnhem
• Cyclone Ingrid restoration works in
Nhulunbuy and other communities
• Government employee housing
in Alyangula – construction of
21 accommodation units
End
East Arnhem
• Work on Donyddji and Mapurru
Homeland Centres
• Galiwinku, Umbakumba and Ramingining
– upgrade existing remote health centres
• Central Arnhem Road – upgrade selected
sections from Beswick to Gove
rine
• Urban enhancement renewal and
landscaping works
• National highways – overtaking
lanes between Darwin and Katherine
and upgrades to Stuart, Victoria and
Barkly Highways to AusLink Network
Standards
• Upgrade Bulman aerodrome
• Upgrade and expand renal facilities in
remote communities
• Causeway at Rose River and upgrade
road between Ngukurr and Numbulwar
• Minor new works on air strips and
barge landings
• Complete sewerage infrastructure works
at Milingimbi and Gapuwiyak
• Indigenous housing construction and
upgrades
• Essential services infrastructure work at
Numbulwar
• Public housing renewal in urban
centres and further work to improve
safety and security of tenants
Barkly
e Springs
Territory Wide
• Construction, replacement and land
servicing for government employee
housing in remote localities
Barkly
• Upgrade Alpurrurulam aerodrome to all-weather
standard and provide shade structure and ablutions block
• Borroloola power station – extension
• Elliott power station – upgrade power generation and
fuel storage facilities
• Improved landing and
boat launching facilities
for recreational fishing
• Blackspot roads program
– improve known danger
areas and reduce road toll
• Cabbage Gum – new water pump station
• Borroloola – new water treatment plant
• Robinson River school – new transportable building
• Tennant Creek power station – upgrade fuel bunding
Regional Highlights
11
A Safer
Police
The Police, Fire and Emergency Services 2005-06 Budget is a record
$189 million and includes:
• $103 million for general policing, crime detection, investigation and
prosecution;
• an additional $8.2 million for the third year of Building Our Police
Force in 2005-06 for the continued implementation of the O’Sullivan
Review recommendations. Further police recruitment will provide
more police for core policing duties, and living and working
conditions for police will be improved. Funding will also provide
educational road safety programs;
• $0.44 million in 2005-06 to provide Aboriginal Community Police
Officers working in remote communities with police-owned vehicles
to carry out their duties;
• $0.2 million in 2005-06 for mobile police stations in Darwin and
Alice Springs to increase police rapid response capabilities to crime
hotspots and community needs;
• $0.16 million to purchase a 7.4 metre coastal vessel for Wadeye; and
• an additional $0.55 million in 2005-06 for counter-terrorism
initiatives, $0.14 million for urban search and rescue equipment and
$0.1 million for first responder equipment.
The 2005-06 Budget also includes $6.9 million for police, fire and
emergency services infrastructure.
Fire and Emergency Services
The 2005-06 Budget continues to support improvements in urban and
remote fire and emergency services and includes:
• $24.7 million for fire prevention and response management;
• $3.6 million to build a new fire station and to upgrade and expand
fire fighting equipment at Marrara;
• $2.2 million for emergency services;
• $1.7 million for better pay and retention initiatives for
firefighters;
• $0.75 million to continue implementing the Northern
Territory Fire and Rescue Services Review recommendations
to address management and workplace issues, industrial
relations and staff development;
• $0.23 million for expanded fire and emergency services at
Yulara in conjunction with Voyages Hotel group;
• $0.21 million for an emergency services presence at Kings
Canyon; and
12
A Safer Community
Community
• total funding and grants for volunteer bush fire brigades of over
$0.9 million, and about $2.6 million in 2005-06 for strategic bush fire
management, training and community awareness.
Community Safety
$50.03 million for community safety and crime prevention. Associated
initiatives include:
• $0.35 million in 2005-06 for Community Safety Plans implementation
grants and $0.4 million for crime prevention grants;
• $9.29 million for road safety services;
• $1.15 million to support Safer Territory Communities road safety
programs and interventions;
• $1.12 million to implement Alcohol Framework recommendations,
including establishing the Office of Alcohol Policy and a full review of
the Liquor Act;
• $0.11 million per year for Neighbourhood Watch;
• $3.5 million for the Office of Crime Prevention; and
• $1.7 million for the Community Harmony Strategy Stuart Lodge
upgrade in Alice Springs.
Justice Services
• $5.2 million in 2005-06 for the second year of implementing the
recommendations of the Review of Adult Custodial Services: A Path
to Good Corrections.
• $1 million for further improvements to Darwin Correctional Centre, in
addition to completing the $8 million new low security facility.
• An additional $0.72 million from 2005-06 for the Legal Aid
Commission to provide legal assistance in matters arising from
Territory law.
• Additional $0.35 million for enhanced mental health and disability
services for clients at Darwin Correctional Centre.
• Additional $0.33 million ongoing for the Community
Justice Centre to provide for quicker dispute resolution
as a possible alternative to legal action.
• Additional $0.1 million per year for the Domestic
Violence Legal and Advocacy Services for Darwin and
Alice Springs.
• Additional $0.2 million from 2005-06 for two prosecutors
to prosecute sexual assault matters under the Sexual
Assault Prevention Plan.
A Safer Community
13
Building Healthier
The 2005-06 Budget includes:
• total expenditure on health and community services of $687 million,
an increase of $25.8 million over 2004-05;
• $392 million for hospitals and acute services;
• $157 million for community health, family and children’s services;
• $87 million for aged, disability and mental health care services;
• $50 million for public health services and research; and
• $33.2 million for 2005-06 health capital infrastructure and $8.3 million
for repairs and maintenance.
Health Services
There are many improvements to the quality and range of health
services in 2005-06 across the Territory, including:
• additional ongoing $1.94 million for Alice Springs Hospital intensive
care unit staffing and support;
• $1.87 million to operate the Royal Darwin Hospital 12 bed hospice;
• $0.5 million per year to improve care and support services for
Territorians requiring interstate radiotherapy treatment;
• $2.5 million for the Birthing Centre at Royal Darwin Hospital and
$0.3 million for staff training;
• $2 million additional recurrent funding for renal services closer to
patients’ homes in regional and remote areas across the Territory;
• extra ongoing $1.5 million per year for essential mental health
services including $0.2 million to strengthen 24-hour emergency
response and $0.35 million to establish four additional child and
adolescent psychiatrist positions in rural centres;
• a further $0.6 million a year for community-based residential mental
health care services in Darwin and Alice Springs;
• Life Promotion Program expanded, with $0.25 million a year for
suicide prevention work in regional and remote communities;
• $0.3 million to support new youth services in Alice Springs, Gove,
Gunbalanya, Willowra, Belyuen, Timber Creek and Groote Eylandt;
• additional $0.5 million to enhance the HIV/STI treatment and
prevention program;
• $2.0 million to implement network, rehabilitation and treatment
services for people with volatile substance misuse problems; and
• $0.9 million for computing equipment at all remote clinics.
14
Building Healthier Communities
Communities
Community Services
Community services will be improved in 2005-06, through:
• additional $1.13 million in 2005-06 for indexation of payments to
non-government organisations;
• $0.2 million per year for nurses to study locally as midwives and
$0.5 million to improve maternal and child health services;
• $0.34 million to enhance services for people with chronic pain;
• $0.4 million per year for home birth care services and outreach
ante-natal services to remote communities;
• additional $0.6 million for oral health equipment and services;
• extra $1 million for tailored services for high need children in care;
• $0.5 million for the new NT Health Direct, a telephone-based health
service for fast access to health advice;
• $0.5 million to employ Indigenous cadets, foster care support
workers and new community resource staff to work exclusively with
Indigenous communities;
• $0.5 million to develop an intensive family support service providing
specialised, short term, intensive therapeutic and practical support
for families the subject of repeat child protection notifications or
investigations or both; and
• additional $0.43 million for the Nhulunbuy Special Care Centre,
$0.15 million for a community patrol. A $0.39 million contribution has
been made to a 12 bed sobering-up facility in Nhulunbuy.
Health Infrastructure
• Total of $33.2 million for capital works in 2005-06 and $8.3 million for
repairs and maintenance.
• $9.27 million for Alice Springs Hospital fire safety upgrade works.
• $0.65 million to upgrade health staff accommodation in Alice Springs.
• $1.8 million to complete the Yuendumu Health Centre and
$0.38 million to complete other Central Australian health centres.
• Refurbish offices in Casuarina Plaza in Darwin and Centrepoint
building in Alice Springs to improve occupational health and safety
for Health and Community Services staff.
• $1.0 million each for upgrades to Flynn Drive and Alice Springs
Hospital renal facilities, providing additional renal stations and
services for acute patients.
• $1.2 million for community-based residential facilities in Darwin and
Alice Springs for 24 hour support for people with mental illness.
Building Healthier Communities
15
Lifestyle and
The Territory lifestyle remains a high priority with the Territory
Government in 2005-06:
• $2.9 million will support major events;
• $22.6 million for sport and recreation;
• Over $34.4 million for arts, museums and libraries;
• $94 million for conservation, natural resource management, the
environment and heritage;
• $6.7 million for passenger transport services; and
• $68 million for public housing services.
Sport and Recreation
Events
• A capital grant of $5 million will be provided in 2005-06 for stage 1
of the Palmerston Recreation Centre for construction of a two-court
multi-purpose indoor recreation and leisure centre.
• $0.29 million for the 2005
V8 Supercars Championships
• $5.8 million for Darwin soccer stadium.
• $0.27 million for Australian Football
League matches and players’ and
coaches’ camps
• $3.8 million over four years for Hidden Valley Raceway upgrade which
includes eight additional pit garages for the V8 Supercars event.
• $0.07 million in 2005-06 for national
basketball fixtures in Darwin
• $0.3 million from 2005-06 to assist elite Territory athletes to compete
at national and international levels.
• Ongoing $0.5 million to support the staging events in the Territory.
•
Sports grants of $5.9 million to assist the development of
sporting facilities.
•
$0.08 million to establish Sportsbiz – an advisory unit to
strengthen management and governance capacity of
sporting organisations.
•
$0.8 million capital grant for the Alice Springs drag strip.
•
$0.5 million for improved recreational fishing
infrastructure.
Lifestyle and Environment
16
Lifestyle and Environment
•
Upgrade of facilities at Territory Wildlife and Alice Springs
Desert Parks.
•
$1.2 million additional recurrent funding for management
of Territory parks, including the new Channel Point
recreation reserve.
•
$1.02 million for Channel Point Reserve ranger
accommodation, camping and boat launch facilities, roads
and signage.
•
$1.95 million for Litchfield National Park facilities.
Environment
• $1 million for West MacDonnells National Park facilities.
• $0.48 million for continued community education and campaigns
against cane toads.
• $0.5 million for Mary River Wetlands desalination works.
• Funding of $4 million in 2005-06 to continue women’s, youth,
multicultural and seniors’ advancement within the community.
• continuation of $0.5 million in grants to improve multicultural
community facilities.
• $1.1 million per year for the Northern Territory Indigenous Arts
Strategy.
• Additional $0.75 million a year from 2005-06 for the Bullocky Point
museum and art gallery for ongoing development.
• Additional $0.4 million per annum will be provided from 2005-06
to expand the grants program for festivals, particularly in rural and
remote areas of the Territory.
• Northern Territory Film Office grants program to increase by
$0.05 million in 2005-06, $0.1 million in 2006-07 and $0.15 million
in 2007-08 to enhance the film, television and digital media
industries in the Territory.
• $0.3 million will be provided in 2005-06
for a Public Art Strategy, which aims to
enhance the quality of the built environment
and public facilities, and support the
arts community through economic and
professional opportunities.
Keeping the Cost of Living Down
The Territory’s population is small and widely dispersed and this
can drive up the cost of living compared to the rest of Australia. The
2005-06 Budget funds a range of initiatives designed to counteract
this influence and keep these costs of living down. For 2005-06
these programs total $153 million:
• $1.0 million to maintain heritage properties
across the Territory.
• $43 million so that all Territorians pay the same household water,
electricity and sewerage charges, regardless of where they live;
• Additional funding of $0.15 million in 2005-06
to implement the repatriation of Indigenous
human skeletal remains.
• $3.6 million in fuel subsidies to reduce the price of fuel, flowing
through to lower prices for goods supplied in the Territory;
• $1.79 million per annum to continue the
Community Harmony Strategy, which aims to
address the health, wellbeing and antisocial
behaviours of itinerant groups, and provide
opportunities and pathways for itinerants to
move away from destructive lifestyles and
return to their home communities or lead
more productive lifestyles in town.
• $3.7 million in childcare subsidies ($27 for under 2 year olds and
$20 for over 2 year olds, per child care place, per week);
• $1.8 million for renovation projects for older
public housing stock.
• $9.5 million for first home owner grants;
• $10.9 million in stamp duty concessions for home buyers;
• $7.2 million for aged and disabled pensioner concessions to assist
with the costs of electricity, water, public transport, spectacles,
council rates, motor vehicle registration and drivers’ licences;
• $1.14 million for student bus passes;
• $82 000 for the Seniors’ Card scheme, which entitles Territorians
aged over 60 to discounts from participating business; and
• $74 million for HomeNorth housing assistance measures for low
income earners.
Lifestyle and Environment
17
Fiscal and
General Government Cash Targets
2004-05 2005-06 2006-07 2007-08 2008-09
$M
$M
$M
$M
$M
May 2004
0
-16
-9
-6
0
May 2005*
46
-68
-53
-21
0
Source: Northern Territory Treasury
*Includes Darwin City Waterfront payments
surplus (+) / deficit (-)
The surplus of $46 million in 2004-05 is due to
higher revenues due to improved economic and
population growth and delays in commencement
of new programs. It will be used to offset the
Territory’s contribution to the Darwin City Waterfront
Redevelopment project. Higher deficits will now be
recorded in 2005-06 to 2007-08 as the community
infrastructure and the Darwin Convention and
Exhibition Centre are constructed. The Budget is still
expected to return to balance in 2008-09.
Change in Net Debt*
(%)
15
10
5
0
-5
-10
2002
2003
2004
2005
2006
2007
2008
2009
Year End June
Source: Northern Territory Treasury
* Non financial public sector
Net Debt and Interest Payments*
Year Ended 30 June
Net Debt
Interest Payments
2002 2003 2004 2005 2006 2007
$M
$M
$M
$M
$M
$M
1 753 1 723 1 656 1 653 1 718 1 761
196 193 188 174 167 163
Source: Northern Territory Treasury
*Non financial public sector
2005-06 Territory Own-Source Revenue
Taxes on Employers
$109.5M
In 2004, the Territory’s fiscal strategy targets were
reset to boost service delivery and provide economic
stimulus. The updated targets are for the Budget to
be in surplus in 2004-05, to record deficits between
2005-06 and 2007-08, and to return to balance by
2008-09.
Mining Royalties
$48.1M
Gambling
$50.6M
Between 2001-02 and 2004-05, net debt has reduced
by $100 million. Over the next four years, net debt
is estimated to increase by $128 million, returning
to a level consistent with 2001-02, notwithstanding
significant investment in service delivery
and infrastructure, including the
Territory’s investment in the Waterfront
project. Interest payments continued to
2008 2009
$M
$M
decrease from 2001-02 and are projected
1 787 1 781
to decline steadily until 2008-09, when
168 173
there is a small increase due to the effect
of the Waterfront project.
2005-06 General Government Expenses by Function
General Public Services
$170M
Health and Welfare
$667M
Education
$557M
Public Order
and Safety $285M
Taxes on
Insurance $23.0M
Motor Vehicles
$36.2M
Taxes on Property
$80.6M
Source: Northern Territory Treasury
Own-source revenue comprises about 20 per cent of the
Territory’s total revenue. The largest component is stamp duty
at 34.5 per cent, followed by payroll tax at 31.5 per cent.
18
Fiscal and Economic Outlook
Other Economic
Affairs $74M
Recreation, Culture
and Housing $277M
Other Industry Services
$689M
Source: Northern Territory Treasury
Key functions of health, education and public order and safety
comprise 55.5 per cent of Government expenses.
Economic Outlook
Total infrastructure spending
is expected to be $476 million
in 2005-06, with repairs and
maintenance and minor new works
both increasing by $8 million.
These figures exclude the Territory’s
payments to the Darwin Cove
Consortium for community
infrastructure, estimated to be
$8 million in 2004-05 and $48 million
in 2005-06.
Infrastructure Expenditure
2004-05
Cash
$M
2005-06
Cash
$M
Capital Works
263
255
Capital Grants
46
43
162
170
8
8
479
476
Repairs and Maintenance
Infrastructure-related
Total Infrastructure Expenditure
Note: Figures include Power and Water Corporation.
Economic Outlook
Northern Territory output growth is forecast at 6.2 per cent in 2005-06.
Continued growth reflects the improving employment outlook,
population growth maintaining a solid pace and the continuation of
the cyclical recovery across a range of industries. Output will also be
boosted by the start of LNG production.
Employment is forecast to increase by 2 per cent in 2005-06,
boosted by major projects, defence infrastructure development and
construction for the Darwin City Waterfront Redevelopment project.
Stronger prospects for residential construction and the tourism sector
will also support jobs growth.
Solid interstate inflows will underpin forecast population growth of
1.1 per cent in 2005, supported by initiatives to attract skilled workers.
Year on year inflation is forecast to increase to 2 per cent in 2005,
compared to 2.3 per cent nationally.
The economic base of the Territory is expected to expand significantly
over the next decade, with offshore gas and mining developments,
opportunities associated with the railway as well as a recovery in
tourism and further opportunities arising from the defence presence.
Summary of Territory Economic Indicators
Year on Year Percentage Change
Estimate Forecast
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Real GSP
5.7
2.3
0.2
0.4
7.3
6.2
Employment
1.1
5.4
-0.1
-2.2
-1.3
2.0
Population*
1.0
0.9
0.1
0.4
1.2
1.1
Darwin CPI#
3.9
3.6
2.2
2.1
1.6
2.0
* Based on middle of the financial year, December estimates, annual percentage change
#
Based on middle of the financial year, December estimates, year on year percentage change
Fiscal and Economic Outlook
19
Darwin City Waterfront
The $1.1 billion Darwin City Waterfront redevelopment project will
establish substantial community ‘lifestyle’ infrastructure, the Darwin
Convention and Exhibition Centre, a serviced hotel and residential
accommodation developments, and deliver significant long term
economic and social benefits to the Territory.
A 25-year commercial relationship is currently being negotiated
between the Territory Government and Darwin Cove Consortium
(which comprises ABN AMRO Australia Limited, the Sitzler Bros Barclay
Mowlem joint venture, MacMahons NT and Toga Pty Ltd).
Darwin Convention and Exhibition Centre
Through a public private partnership, the Centre will be designed and
constructed by the Sitzler Bros Barclay Mowlem joint venture, and over
25 years, Honeywell Inc will maintain and Ogden Australia Pty Ltd will
operate the Centre.
The Territory will make operational and incentive payments over
25 years after which ownership of the Centre will transfer to the
Territory. Government incentives (in addition to capital and operating
assistance) will encourage the consortium to attract national and
international delegates, creating potential new stimulus for Territory
tourism.
Community Infrastructure
The community infrastructure is designed for the tropical lifestyle
and public amenity, including a seawall, extensive boardwalks,
children’s playground, wave pool, a new cruise ship terminal at Fort
Hill Wharf and an Avenue of Honour that connects Darwin’s central
business district to the Waterfront facilities. MacMahons NT will shortly
commence work on stage 1, with completion targeted for April 2007.
Although the consortium is responsible for design and construction,
the Territory will pay for and own the stage 1 community infrastructure
when it is completed. Further community infrastructure will be
provided by the consortium as the remaining property is developed.
Property Development
The commercial aspects of the site will be
developed by the consortium over time in
accordance with market demand. Stage 1 of the
property development will include an apartment
hotel to complement the Convention and
Exhibition Centre, residential units, and commercial
and retail space. Full development of the site may
take up to 15 years. The Territory will receive a
portion of the revenue from future property sales,
sharing in the increased value of the land.
20
Darwin City Waterfront