The NSW Nationals will introduce legislation to deliver payroll tax relief, challenging the Minns Labor Government to back small and family businesses struggling with rising costs and taxes.
The legislation will put The 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.
Accountant Belinda Raso said this week that businesses have had “a year from hell,” with confidence falling to record lows – lower than during the pandemic – while 6,200 businesses closed their doors last year.
The Nationals plan to back business will create the most competitive payroll tax regime in the country which 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.
Shadow Minister for Small Business and NSW Nationals Leader Gurmesh Singh said business owners needed relief that made a difference to their bottom line.
“Small businesses are fighting to stay afloat as extra taxes, fees and charges eat into already thin margins, yet the Minns and Albanese Labor governments keep asking more of the people who can least afford it,” Mr Singh said.
“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.”
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.
“Labor can support payroll tax relief or explain to employers why it wants to keep the burden in place.”
