Shadow Minister Media Releases
Payroll Tax Cuts Not Enough To Make NSW Competitive ( 05/06/2008)
Shadow Minister for Small Business & Regulatory Reform, Don Page MP says the payroll tax cuts announced in this weeks State Budget are not nearly enough to make NSW businesses competitive with States like Queensland.
“NSW businesses will still pay much higher payroll tax in terms of the rate paid and have lower exemption thresholds,” he said.
“NSW remains extremely uncompetitive with other States on payroll tax,” Mr Page said.
“Reducing the payroll tax rate by 2011, to 5.5% still puts NSW a long way short of Queensland’s current rate of 4.75% and Victoria’s rate of 4.95% from July 1 this year,” Mr Page said.
The State Government also announced that they would index the payroll tax threshold to the CPI, which raises the threshold this year to $623,000.
“Again, this measure is a long way short of what is needed,” Mr Page said.
In Queensland, for example, the threshold before payroll tax is payable is $1million.
“The Coalition policy at the last election was to raise the payroll tax threshold to $1million. This would bring NSW into line with the current payroll tax threshold in Queensland.
“If the NSW Labor Government wants NSW business to become competitive it will need to get serious about cutting the payroll tax rate and increasing the payroll tax threshold,” Mr Page said.
It also needs to reduce the number of taxes it imposes on small businesses. There are currently around 23 State taxes that small business could pay.
“The Iemma Government is the highest taxing Government in Australia. It also burdens NSW business with the most red tape. A recent survey revealed small business in NSW spend 20 hours per week on red tape compared to 15 hours in Queensland.
“NSW businesses need a lot more pain relief than the latest budget has given them.
“I urge the NSW State Government to take further steps to ease the tax and red tape burden on NSW business so they can become competitive with other states.”
