An exodus of businesses from NSW has again highlighted the need for important reforms to payroll tax proposed by The Nationals.
Analysis of Bureau of Statistics data by Business NSW has found NSW lost more than 3,000 businesses in the last three years, attributed to high operational costs and tax settings.
Queensland welcomed more than 4,000 businesses in the same period.
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.
Industry groups including Business NSW, the Pharmacy Guild, the Housing Industry Association, Australian Industry Group and Motor Trades Association of Australia have applauded the proposed reform.
NSW Nationals Leader and Shadow Minister for Small Business Gurmesh Singh said businesses should be rewarded for hiring and encouraged to expand.
“When businesses are leaving the state in record numbers, that’s not just a statistic, it’s a warning that NSW needs reforms and businesses need us to back them.
“Businesses are leaving, confidence is at record lows and Labor still has no plan to make NSW competitive again, but the NSW Nationals do.”
