potential 5 star performer, page-48

PM Kevin Rudd pushes into Northern Territory with company tax cut pledge

By chief political correspondent Emma Griffiths

Updated Thu Aug 15, 2013 3:55pm AEST


Prime Minister Kevin Rudd says he wants to give businesses in the Northern Territory a "leg up" by cutting company tax rates in the state by as much as a third.

But Opposition Leader Tony Abbott, who has previously promised to review tax incentives in the north, has dismissed Labor's policy as "catch-up politics".

Mr Rudd has made his first visit to the NT this election campaign, targeting concerns about unemployment and infrastructure in the region and declaring "I love the Territory".

He has announced a "three pillar" economic strategy, hinging on an "objective" to cut the company tax rate for businesses there by up to one third - but not until 2018.

"I love the Territory," Mr Rudd said, explaining he thinks Northern Australia is "huge in terms of its economic potential".



Key points
Kevin Rudd wants to cut company tax in the NT by up to a third
PM says he is concerned about unemployment and infrastructure in the region
Tony Abbott says Kevin Rudd is playing 'catch-up politics'
Labor frontbencher previously criticised Coalition's plans to cut taxes in the region



"My personal objective for the Territory given its unique remoteness is for it to have a company tax rate one third lower than that of the rest of the country," he said.

"All we're talking about is giving people a bit of a leg up and I think most Australians when they come to Darwin say 'that's a fair thing'."

The company tax rate is currently 30 per cent and, under Labor's plan, could be reduced to 20 per cent.

Mr Rudd has not released any costings for the proposal, arguing that will have to wait for more detailed talks with the NT Government.

He said, a final plan - including costs - would be announced next year if Labor was re-elected.

The Constitution prohibits different tax rates between the states, but Mr Rudd has pointed out there are no restrictions regarding the territories