A lift in the Payroll Tax threshold to $1 million over the next four years will be celebrated by businesses across NSW, particularly those who were approaching or are just over the current threshold, says the State’s peak business organisation, the NSW Business Chamber.
Premier Gladys Berejiklian has announced the change as part of the State Budget, to be delivered on Tuesday.
“This is a very positive step and something that the NSW Business Chamber has been campaigning for over a long period,” said Kellon Beard Regional Manager Mid North Coast NSW Business Chamber.
“Payroll tax, and the very low threshold in NSW, has discouraged small businesses from hiring additional staff, and worse still it costs many small businesses thousands of dollars each year in administration costs for relatively little additional state revenue,” Mr Beard said.
“Lifting the payroll tax threshold was a central plank of our Keeping NSW Number One campaign which was launched in March, and of our pre-budget submission, which was released in April.
“Payroll tax is a tax on jobs and job creation and serves as a disincentive to employ more people.
“An increase from $750,000 to $850,000 in the first year, and then by $50,000 per year for the next 3 years means a business with an annual payroll of around $750,000 can hire two extra young job seekers without being slugged by a tax penalty and extra administrative costs.
“Being penalised for creating new jobs is just ridiculous.
“As cost pressures on doing business in NSW increase, especially energy prices, the State Government has heard the message loud and clear from the business community that they need relief if they are going to employ more of their fellow Australians.
“What’s important about this announcement is that it’s not just Sydney centric – in fact, regional NSW has a higher relative share of businesses just over the payroll tax threshold, and these are “mum and dad” businesses that shouldn’t be caught up in the complication of processing and remitting payroll tax.
“With a State Election in March next year, the NSW Business Chamber will continue to advocate for both major parties to develop and articulate policies that drive business confidence, investment and more jobs in this state,” Mr Beard said.