The NSW 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 for small and medium businesses as part of a comprehensive plan to grow the economy and create more jobs.
A strong NSW starts with a strong economy, but under Labor our state has fallen to the back of the pack. Last year the NSW economy grew by just 0.9 per cent – the lowest growth rate of any state in Australia.
When the economy slows, families pay the price. Wages stagnate, jobs become harder to find, and businesses struggle to survive and grow.
Business confidence has fallen to record lows – lower than during the pandemic – and more than 6,200 businesses closed their doors in NSW last year alone.
When the NSW Nationals were in government, NSW had the strongest economy in the nation.
We want to restore that record so families can get ahead and stay ahead.
A 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.
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,” Ms Sloane said.
“We must do more to address economic growth because at the moment it’s lagging behind population growth which means families are working harder than ever but are going backwards.”
Nationals Leader and Shadow Minister for Small Business Gurmesh Singh said the reforms reflected The Nationals’ belief that economic growth comes from hardworking families, small businesses and the private sector, not bigger government.
“We should be doing everything we can to help small businesses succeed because when they thrive, they create jobs, strengthen local communities and drive economic growth across NSW,” Mr Singh said.
“Small businesses don’t want more red tape or higher costs, they want a government that wants them to succeed.”
The 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 a comprehensive industry strategy to drive jobs growth across major sectors.
This is part of The Nationals’ practical plan to help families get ahead and stay ahead, support businesses to grow and create jobs, and build a stronger future for NSW.
