The Northern Territory Government is committed to increasing and supporting investment. There are a range of programs and incentives available to help develop and advanced projects.
Investor friendly
Through the work of the Department of Trade, Business and Asian Relations, the Northern Territory is focused on driving investment and trade opportunities as well as workforce development. We deliver strong returns for investors with a range of tax incentives and business concessions alongside competitive legislative frameworks.
Our key advantages include:
- the most generous payroll tax-free threshold in the country
- robust economy with clear vision for growth
- streamlined processes to reduce ‘red tape’ and business costs.
Tax incentives and concessions
We offer the most generous payroll tax-free threshold that no other state or territory in Australia can match, delivering a boost to your bottom line.
Australia has one of the lowest overall tax rates in the developing world. Our tax revenue is equal to just 29% of GDP, which is 5 percentage points lower than the 34% average for OECD countries.
Australian taxes on goods and services are equivalent to 7% of Australia’s GDP, compared to 11% across OECD countries. Australia’s corporate tax rate is typically lower due to various deductions, credits and incentives.
Research and development (R&D) tax incentives significantly reduce rates for innovative companies. For example, a company that invests AU$100,000 in R&D may be eligible to receive a cash refund of over AU$40,000.
Overall, Australia’s corporate tax laws are stable and predictable. This helps to reduce costs, like tax agreements with other countries that prevent tax duplication.
Australia’s payroll tax threshold, as of 1 January 2025 by state/territory:
State/territory | Tax rate | Annual threshold |
|---|---|---|
Northern Territory | 5.5% | AU$2.5 million |
Australian Capital Territory | 6.85% | AU$2 million |
South Australia | 4.95% | AU$1.5 million |
Queensland | 4.75% 1.95% (for businesses > AU$10 million) | AU$1.3 million |
New South Wales | 5.45% | AU$1.2 million |
Western Australia | 5.5% | AU$1 million |
Tasmania | 4.0% (for businesses with payroll < AU$5 million) 6.1% (for businesses >AU$5 million) | AU$1.2 million |
Victoria | 4.8% (Metro) 1.2125% (Regional) | AU$700,000 |
Migration pathways
Australia is shaped and invigorated by the diverse cultures and talents of migrants. Coupled with the profound history of our First Nations people, multiculturalism is key to our nation’s productivity and growth. Building a skilled workforce will enable us and our strategic partners to transition to a net zero economy.
Skilled migration
In the Northern Territory, attracting, retaining and growing a skilled, diverse workforce is a priority for the government, and skilled migration is a key plank of its workforce development strategy. The Northern Territory Government advocates for changes to skilled migration programs and visa schemes with the Australian Government to better meet our workforce needs.
Through initiatives like the Global Worker Attraction campaign and the WorkerConnect platform, which links people from interstate and overseas to job opportunities, the government aims to raise the Northern Territory’s profile as a desirable place to live and work and connects Northern Territory employers with job seeker interstate and overseas.
Migrate for work
The Northern Territory offers a range of migration programs designed to help employers sponsor overseas skilled workers, including:
- Northern Territory Designated Area Migration Agreement (NT DAMA): through the NT DAMA, employers can sponsor workers in occupations not covered by standard national visa programs and access concessions on certain criteria.
- Temporary Skill Shortage (Medium-term) visa (subclass 482): this visa allows employers to address labour shortages by bringing in skilled workers when they cannot source appropriately skilled Australian workers.
- Skilled Employer-Sponsored Regional (Provisional) visa (subclass 494): this visa allows regional employers to address identified labour shortages within their region by sponsoring skilled workers when they cannot source appropriately skilled Australian workers.
- Temporary Work (Short Stay Specialist) visa (subclass 400): this visa allows short-term, highly specialised, non-ongoing work in limited circumstances.
- Training visa (subclass 407): this visa allows individuals to take part in workplace-based training to enhance skills in a specific area of tertiary study, field of expertise, or professional development.
- Temporary Work (International Relations) visa (subclass 403): there are 5 streams under this visa, including the Pacific Australia Labour Mobility (PALM) scheme.
Individuals can also migrate to work in the Northern Territory without employer sponsorship through the General Skilled Migration with Northern Territory Government nomination.
The Northern Territory Government can nominate individuals for a skilled visa if they meet the Australian Government’s standard requirements and the Northern Territory Government’s nomination eligibility criteria.
Individuals must also commit to living and working in the Territory within their skilled occupation for at least 3 years after their visa is granted.
Financial solutions
Territory Growth Initiative
The Territory Growth Initiative (TGI) provides access to financial support for eligible high-growth potential businesses, to help establish or expand operations and for projects that may not otherwise be able to readily access capital in the Northern Territory.
The TGI aims to:
- build a skilled workforce
- support business growth
- unlock economic activity
- accelerate enabling infrastructure-led projects.
The initiative is responsible for administering:
- Collaborative Investment Program
- Territory Infrastructure Loans
- Paspalis Co-Investment Fund.
Northern Australian Infrastructure Facility
The Northern Australian Infrastructure Facility (NAIF) investments can be used to develop new or materially enhance existing infrastructure. NAIF can lend up to 100% of the debt, provided there is appropriate risk sharing.
Loans can be on concessional terms, relative to private sector financing arrangements, if the infrastructure generates public benefit and there is an ability to repay or refinance.
As of June 2024, NAIF has:
- committed AU$4.4 billion to projects across Northern Australia
- AU$33.8 billion public benefit forecast
- 33 projects funded
- 18,300+ total forecast jobs.
Clean Energy Finance Corporation
The Clean Energy Finance Corporation (CEFC) is a specialist investor at the centre of efforts to help deliver on Australia’s ambitions for a net zero future.
With a strong investment track record, the CEFC invests to fill market gaps by collaborating with investors, innovators, and industry leaders to spur substantial new investment where it will have the greatest impact. The CEFC invests on behalf of the Australian Government, with a strong commitment to deliver a positive return for taxpayers across its portfolio.