NSW is leading the country in business insolvencies, with more than 5,300 businesses going under last year as Labor’s high-tax, high-cost economy continues to put pressure on employers.
The latest data from the Australian Securities and Investments Commission (ASIC) underscores the need for The Nationals’ plan to cut payroll tax and make it easier to do business in NSW.
NSW accounted for almost 40 per cent of all insolvencies in Australia, well ahead of Victoria with almost 4,100 and Queensland with 2,700.
More than 15,600 businesses have entered insolvency in the past three years under the Minns Labor Government.
This follows a Business NSW survey which found confidence was lower than during the height of COVID and one in five businesses were considering shutting their doors for good.
Nationals Leader and Shadow Minister for Small Business Gurmesh Singh said businesses must be a priority.
“We cannot stand by and watch thousands of businesses close their doors. When businesses succeed, they create more jobs, strengthen communities, and the economy grows,” Mr Singh said.
“The Nationals have a plan to back businesses, help them succeed and return NSW to the top of the pack.”
Shadow Treasurer Scott Farlow said that’s why a Coalition Government would prioritise policies that back business.
“Under Labor more than 14 businesses a day are having to shut their doors because of higher costs, rising energy bills and taxes,” Mr Farlow said.
“The fact NSW is leading the country in insolvencies is why the Liberals and Nationals plan to cut payroll tax is so critical.”
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.
