Western Australia must change payroll tax arrangements
“The Western Australian Government needs to stimulate the economy and reform payroll tax,” said Simon Bennison, Chief Executive Officer, Association of Mining and Exploration Companies.
“Payroll tax is an insidious tax that is inefficient, a major business input cost, and a disincentive to investment.”
“The Government should stimulate additional economic activity and growth by immediately increasing the payroll tax threshold from $850,000 to $1.5 million, or at the least, over a 3-year period by 2019/20.”
“Such a threshold will begin drawing WA in line with other jurisdictions, but will still be lower than the $2 million threshold for the ACT.”
“The scale of the social and economic stimulus provided would also justify a rate reduction from 5.5% to 4.75%, over a similar 3-year transition period. Such a rate would be the same as Queensland.”
“The savings achieved at a small business level from both of these payroll tax reforms could be re-directed towards creating employment opportunities, or improved cash flow for operational purposes and business expansion, and other broader economic benefits,”
said Mr Bennison.