School Counsellors Mission
Darwin
25 May 2017
Greg Bicknell,
Chief Executive Officer
Chamber of Commerce NT
The VOICE of Territory Business
THE NORTHERN TERRITORY
BUSINESS ENVIRONMENT
The VOICE of Territory Business
• Chamber is largest employer association in
NT – 1250 members, 85% small business
• Private law Chamber, funded by members
• Offices in Darwin, Katherine, Alice Springs
and Gove
• Key services include workplace relations,
international trade, manufacturers council,
events, training, networking, advocacy
• Founding member of ACCI
The VOICE of Territory Business
Financial
Australia’s lowest tax environment for small to
medium businesses. Initiatives include:
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one of the highest payroll tax thresholds
no land taxes (excluding council rates)
fast-tracked business operation approvals
Australia’s lowest developer contributions fees
defined planning and environmental processes
no fire service levy.
The VOICE of Territory Business
TERRITORY ECONOMY
Gross State Product
Strong growth 2010-11 to 2013-14.
In 2013-14 GSP stood at $21 205 million
In 2014-15 GSP increased to $23 032 million
In 2015-16 GSP is estimated to be $23 648million
Territory growth rate of 2.7%
National GDP grew by 3.3% in the same period.
Estimated growth in 2016-17 is 1.9%
Estimated growth in 2017-18 is 3.2%
Forward estimates range around 3.0% till 2020-21
Chart 1: Economic Growth
(year on year percentage change)
%
18
Northern Territory
16
14
12
10
8
6
4
2
Australia
0
-2
-4
07
09
11
13
15
17e
19f
21f
Year ended June
Source: Australian Bureau of Statistics and Deloitte Access Economics
Business Outlook
The VOICE of Territory Business
TERRITORY ECONOMY
Territory Employment
March 31 unemployment rate stood at 3.5%.
Urban unemployment rates around 2%
National unemployment rate is 5.8%
Territory participation rate stood at 78.5%
National participation rate is 65%
Resident employment has been increasing for a decade
Estimated to have grown 1.3% in 2015-16
Forecast to grow 1.3% in 2016-17.
Full time employed estimated at 115,000
Total employed estimated at 141,500
The VOICE of Territory Business
TERRITORY ECONOMY
Territory Population
Steady increase in population 2002-12.
Growth moderated from 1.7 in 2013 to 0.3% in 2016
Chart 3: Territory Population Components
Forecast 5 year growth rate 0.8%
(moving annual total)
Number
National 5 year forecast 1.4%
Estimated to be approaching 245,000 total
population
Average age of population is 31 years
Lowest of all the States and Territories
National average of 37 years
6 000
Net overseas migration
5 000
4 000
Natural increase
3 000
2 000
1 000
0
Net interstate migration
-1 000
-2 000
-3 000
-4 000
07
08
09
10 11 12 13
Year ended June
14
15
16
Source: ABS Cat. No. 3101.0
The VOICE of Territory Business
17
TERRITORY ECONOMY
Territory CPI
Darwin CPI has fallen below national average
March 2017 annual increase of 0.1%
recreation and culture, health and alcohol and tobacco group
costs increased
Decreases in housing, food and non-alcoholic beverages and
transport costs
Darwin increase was lowest (Perth 2.0%)
National increase for the same period is 2.1%
The VOICE of Territory Business
TERRITORY ECONOMY
Territory Exports and Imports
Net surplus of exports to imports is $3.1 billion
Annual exports fell by 24.9% in March 2017 to $3.13 billion
Annual imports at March 2017 decreased to $1.6 billion
Data is strongly influenced by Ichthys project cargoes
Total value of exports expected to be $4.7 billion in 2016-17
 International goods exports are forecast to increase
13.6 per cent per annum over the period to 2020/21.
Estimated value of imports are $3 210 million in 2016-17*
* Import figure excludes feedstock gas from JPDA ~ $1 billion
The VOICE of Territory Business
TERRITORY ECONOMY
Major Players
Mining & Energy sector accounts for 12.9% of GSP
Manufacturing sector accounts for only 4.1% of GSP
National average is closer to 10%
Government and Community Services contribute18.3%
Construction sector accounts for 17.7% of GSP
Defence accounts for 6.9% of GSP
Retail and Wholesale trades accounts for 4.9% of GSP
Tourism sector contributes about 4% of GSP
Rural Industry and Fisheries 2.1% of GSP
Other Services a further 29.1% of GSP
Transport, hiring, warehousing, professional services etc.
The VOICE of Territory Business
Resources Sector
Minerals
Gold, uranium, zinc,
bauxite, manganese, etc
Oil & gas
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Offshore
Bayu Undan,
Blacktip, Ichthys,
Prelude
Onshore
Beetaloo, Mereenie*
* Current Moratorium on hydraulic fracturing
The VOICE of Territory Business
Defence
•11%
ADF combat personnel
•Over
15,000 Defence personnel and families
•Over
2,000 DHA-managed properties
•Military
Exercises – Pitch Black $10 Million p.a.
•Defence
Support Hub – 53ha
•1250 Marines stationed in the NT on a 6 month
rotation, will grow to 2500 in coming years
•$10billion infrastructure spend over next decade
The VOICE of Territory Business
Tourism
The VOICE of Territory Business
TERRITORY ECONOMY
Major Projects committed to or currently underway
INPEX Ichthys LNG Project – first gas first half 2018
Total Value approximately US$37 billion
 Shell Prelude – Floating LNG
Total Value approximately USD$12.6 billion
Palmerston Regional Hospital
Total Value approximately A$120 million
Tindal Air Base upgrade
Total Value approximately A$400 million
NPARIH (incorporating SIHIP)
Total Value approximately A$2 billion
• Aust. Defence construction estimated at A$8 billion over 10 years
The VOICE of Territory Business
TERRITORY POLITICS
Northern Territory Election was held on 27 August 2016
Labour Party regained power with 17 seats, 2 CLP, 5 independent
Previous Legislative Assemblies since self government
1978-2001
Country Liberal Party
2001-2012
Australian Labour Party
2012-2016
Country Liberal Party
2016 Australian Labour Party
New Chief Minister, Michael Gunner, one previous minister
ALP campaigned on stable government, fracking moratorium,
increased social welfare spending
ALP face a challenging time, GST receipts to fall by 188 million,
Ichthys project construction to finish, low commodity prices
constraining growth, increasingly important “bush vote”
The VOICE of Territory Business
THANK YOU
The VOICE of Territory Business