NT budget 2026 offers little for small business and startups

The Northern Territory’s 2026-27 budget delivered little direct support for small businesses and startups, with the Finocchiaro government prioritising a record $1.73 billion law and order package and $4.25 billion in infrastructure spending.

Despite posting a $95 million operating surplus, the NT government allocated just $4.4 million for business grants. And similar to yesterday’s Western Australian budget, the word “startup” did not appear at all in the budget papers.

The budget also included more than $130 million for flood recovery and disaster response measures following severe weather events across the Territory.

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Payroll tax changes for large employers

The Northern Territory continues to maintain the nation’s highest payroll tax-free threshold at $2.5 million, meaning most SMEs remain outside the payroll tax system.

According to the budget papers, 115 Territory employers have claimed exemptions on more than $27 million in wages since the government raised the payroll tax threshold and exempted apprentices and trainees. This has reportedly delivered an estimated $1.5 million in payroll tax savings.

However, from July 1, a new 6.5% payroll tax rate will apply to employers and payroll tax groups with Australia-wide wages of $100 million or greater. This is expected to raise an additional $25 million annually.

The government said the measure was designed to ensure “local and growing Territory employers are not asked to carry the same relative tax burden as large national businesses”.

Businesses below the $100 million threshold will continue paying the existing 5.5% rate after deductions.

$4.4 million in business grants

The budget’s primary direct business support measure is a $4.4 million allocation for ‘Safer Businesses, Stronger Economy and Better Lifestyle’ grants through the Department of Trade, Business and Asian Relations.

The government has not yet released details around eligibility requirements, grant sizes or application processes.

The budget papers show the department’s target is for 90% of recipients to report a positive business impact from the grants program.

An additional $4 million has also been allocated toward migration, trade and investment attraction initiatives.

How the NT budget compares with other states

Compared with other state budgets delivered this week, the Northern Territory offered relatively limited direct support for SMEs and startups.

Victoria announced a $19 million business support package including grants of between $5,000 and $100,000, along with procurement support programs. There was also a footnote regarding the merger of startup support bodies LaunchVic and Breakthrough Victoria.