Media Release: NSW Liberals and Nationals to deliver the most Competitive Payroll Tax Regime in Australia

NSW LIBERALS AND NATIONALS TO DELIVER THE MOST COMPETITIVE PAYROLL TAX REGIME IN AUSTRALIA

The NSW Liberals and Nationals have a plan to support families, back jobs and get NSW back to the top of the pack by delivering the most competitive payroll tax regime in Australia as part of a comprehensive plan to grow the economy and create more jobs. 

Member for Albury, Justin Clancy said a strong economy was essential to creating opportunities for local families and businesses.

"Small businesses across the Albury Electorate are doing it tough, facing higher costs, weaker confidence and growing uncertainty about the future," Mr Clancy said.

"Businesses want to invest, hire more people and grow our local economy, but Labor is making it harder for them to get ahead.

A Sloane Liberal and Nationals Government will create the most competitive payroll tax regime in Australia by:

• Raising the payroll tax threshold from $1.2 million to $1.5 million.
• Reducing the payroll tax rate from 5.45 per cent to 4.75 per cent for businesses with a total Australian payroll below $10 million.
• Introducing CPI indexation to payroll tax thresholds to eliminate bracket creep.

These reforms will remove around 4,000 businesses from the payroll tax system altogether and ensure a further 25,000 businesses receive the lowest payroll tax rate of any Australian state.

For many businesses, this will mean annual savings of up to $75,850.

The NSW Liberals and Nationals will also restore certainty for business by:

• Repealing Labor's union spy powers laws.
• Doubling the funding for Business Connect.
• Putting downward pressure on business power bills by increasing energy supply, improving energy security and generating more power closer to where it is used, reducing reliance on costly transmission infrastructure.
• Developing five sector strategies covering agriculture, financial and insurance services, health care, construction and manufacturing, and retail, hospitality and tourism.

Amanda Ward Director of Gardens Compounding Pharmacy and Priceline Pharmacy Albury said as a small business owner for more than 20 years, employing local people with an annual payroll of around $3 million, I’ve seen the cost of employing people rise dramatically.

“At the same time, governments have increasingly asked small businesses to absorb the cost of important social and economic reforms. From paying merchant EFTPOS fees, to providing paid family and domestic violence leave, small businesses have stepped up because they’re the backbone of their communities.”

“If we want thriving regional communities, we need thriving small businesses.”

“Payroll tax relief such as increasing the threshold, reducing the rate and indexing it to CPI would provide meaningful support, allowing businesses like ours to continue employing local people, investing in our communities and remaining viable for the long term.”

Robert Boschetti, director of Boschetti said payroll tax is, in effect, a tax on employment.

“It places an additional financial burden on businesses that take on the responsibility, risk and cost of creating jobs and supporting economic growth. Rather than encouraging investment in people and workforce expansion, it can act as a disincentive to employment.”

“The regulatory and taxation burden on employers is already significant, and there is a strong case for reducing these costs to support business confidence, job creation and productivity across the economy.”

Leader of the Opposition Kellie Sloane said growing the economy starts with creating the conditions for new and better paid jobs.

"Payroll tax is a tax on jobs, investment and growth. If we want more businesses to invest, employ more people and expand, we need a more competitive tax system."

Leader of the Nationals and Shadow Minister for Small Business said the reforms reflected the NSW Liberals and Nationals' belief that economic growth comes from hardworking families, small businesses and the private sector, not bigger government. 

This is part of the Liberal and Nationals practical plan to help families get ahead and stay ahead, support businesses to grow and create jobs, and build a stronger future