Coalition proposes new payroll tax legislation

THE NSW Liberal and National parties have proposed reforms to existing payroll tax legislation that they say could provide relief for small and family businesses struggling with rising costs.

Coffs Harbour MP, Shadow Minister for Small Business and NSW Nationals Leader, Gurmesh Singh, says the legislation will put the Liberals and Nationals’ signature payroll tax policy before the Parliament, giving Labor the opportunity to support reforms that reduce the cost of doing business, encourage investment in NSW and grow the economy.

The Liberals and Nationals plan to back business includes:

• 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.

Mr Singh said business owners needed relief that made a difference to their bottom line.

“Behind every local business are people who have put their savings, their homes and years of hard work on the line and Labor should support them by backing this legislation,” Mr Singh said.

Shadow Treasurer Scott Farlow said payroll tax reform would strengthen NSW’s ability to compete for jobs and investment.

“Payroll tax makes it more expensive to employ people. Reducing that burden gives businesses more room to grow and NSW a stronger case to attract investment,” Mr Farlow said.