National tax reform provides for the fundamental reform of Commonwealth-State Financial Relations whereby all revenue from the GST is provided to the States and Territories.

  1. The principles of the new arrangements were set out in the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations. In addition to the GST, the following reform measures are set out in the Intergovernmental Agreement.
  2. The Commonwealth will cease to apply the wholesale sales tax from 1 July 2000.
  3. The temporary arrangements for the taxation of petrol, liquor and tobacco under the safety net arrangements will cease from 1 July 2000.
  4. The payment of financial assistance grants to the States and Territories will cease from 1 July 2000.
  5. The States and Territories will cease to apply:
    a. tourism marketing duty from 1 July 2000;
    b. financial institutions duty from 1 July 2001;
    c. stamp duty on quoted marketable securities from 1 July 2001; and
    d. debits tax by 1 July 2005, subject to review by the Ministerial Council.
  6. The States and Territories will provide a scheme to assist first homebuyers in offsetting the impact of the GST through the funding and administration of a first home owner grant scheme from 1 July 2000. 
  7. The Ministerial Council will by 2005 review the need for retention of stamp duty on non-residential conveyances, leases, hiring arrangements, electronic debits and unquoted marketable securities.
  8. The States and Territories will adjust their gambling tax arrangements to take account of the GST on gambling operators.

In fulfilling its obligations under the Intergovernmental Agreement, the Territory has enacted the following legislation.

  • The Financial Relations Agreement (Consequential Provisions) Act which contains the necessary provisions to enable the cessation of fuel subsidies, tourism marketing duty, financial institutions duty and stamp duty on quoted marketable securities. The Act also provides for reductions to the Territory’s gambling taxes to take account of the GST, transitional administrative provisions and provisions to clarify how the Territory’s existing taxes are affected by the GST.
  • The First Home Owner Grant Act provides for the once-only $7,000 maximum grant to eligible first home owners.

Access to the Acts and Second Reading Speeches.

The New Tax System Price Exploitation Code (Northern Territory) Act extends transitional price control measures to prohibit price exploitation during the transition period of 1 July 1999 to 30 June 2002.