DR JOE GOES INTO BAT FOR SMALL BUSINESS
The NSW Parliament has been told the government must reform payroll tax to remove a tax on job creation and to free small businesses from a heavy cost that is stifling growth and employment.
In a private member’s statement to parliament last night, the Independent Member for Wagga Wagga, Dr Joe McGirr, called on the government to increase the threshold at which payroll tax applies from $1.2m to $4m.
Dr McGirr also called for NSW to follow Victoria’s lead by introducing a special payroll tax reduction for small businesses in regional areas,
In the statement, Dr McGirr referred to the situation facing the owners of Kitson’s Property in Wagga who will next year face a payroll tax bill of about $7,000, removing profit from the business without any benefit to the employers who create jobs for local people.
“A threshold of $1.2 million is too low,” Dr McGirr said.
“It snares many small businesses in a cycle of costs that restricts their ability to become medium-sized businesses and, at the same time, acts as a disincentive to job creation.
“At the same time, the Government should follow Victoria's lead by introducing a special payroll tax reduction specifically for small businesses in the regions.
“Victoria's regional small businesses pay just over 1.2 per cent of their wages in payroll tax, compared with 5.45 per cent across the board in New South Wales.
“The time to act is now, and I urge the Government to do so without delay.”
Dr McGirr welcomed today’s announcement that the Coalition would cut payroll taxes for small and medium businesses, and lift the tax-free threshold to $1.5 million, but said it should go further, especially for regional areas.
Business NSW, which has warned that 39 per cent of Riverina businesses plan to reduce staff numbers because of multiple challenges to the sector, continues to support payroll tax reform.
Dr McGirr’s statement can be read at https://www.parliament.nsw.gov.au/Hansard/Pages/HansardResult.aspx#/docid/HANSARD-1323879322-167067/link/2237