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The economic development of northern Australia: A critical review of the taxation benefits and incentives both past and present and the potential taxation options for the future

McLaren, J 2017 , 'The economic development of northern Australia: A critical review of the taxation benefits and incentives both past and present and the potential taxation options for the future' , Journal of the Australasian Tax Teachers Association, vol. 12, no. 1 , pp. 1-22 .

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Abstract

In 2015, the Australian government (Commonwealth of Australia) produced a WhitePaper on the need to realise the full potential of northern Australia and for that region tobecome an economic powerhouse within Australia. The White Paper explicitly states thatthe government is not declaring the north a Special Economic Zone where tax concessionsare provided to businesses to reside and operate in the region. This paper will examinethe current government’s approach to developing the north and in particular theapproach to attracting economic activity and foreign investment. This paper will focus onthe current tax benefits for those living and working in the north, such as zone rebates,and in particular on what more that could be done by the Australian, state and territorygovernments to encourage economic activity. The paper will also examine the taxconcessions that existed in the past such as an exemption for income tax pursuant to thenow repealed s 23(m) of the Income Tax Assessment Act 1936 (Cth)for companies residentin the Northern Territory prior to 1947, and the Darwin Trade Development Zone thatwas abolished in 2003. The paper will then assess the merits of offering tax benefits in theform of tax credits for businesses operating in the north and greater tax deductions. Thepaper will explore the merits of a Special Economic Zone for the north as well as taxbenefits that could be offered by the states of Queensland and Western Australia and theNorthern Territory. The paper will also provide recommendations for a range of taxbenefits that could be offered by the various governments to businesses and individualsin order to assist in developing the north. If not, the north may fail to fulfil its truepotential.

Item Type: Article
Authors/Creators:McLaren, J
Keywords: tax reform, company taxation, superannuation
Journal or Publication Title: Journal of the Australasian Tax Teachers Association
Publisher: Australasian Tax Teachers Association
ISSN: 1832-911X
Copyright Information:

Copyright 2017 Australasian Tax Teachers Association

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