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Category: Tax / Government and Politics / Small Business

Nationals' payroll tax relief plan fails to garner business support

Sunday, 30 Oct 2016 07:35:22 | Hayley Roman

Deidre Willmott says payroll tax relief should be funded through government spending cuts. (ABC News: Andrew O'Connor)

The WA Nationals' plan to deliver payroll tax relief through a proposed mining tax increase has been described as the "wrong approach" by the state's Chamber of Commerce and Industry (CCI).

Nationals leader Brendon Grylls yesterday outlined his proposal to use revenue from a $5 per tonne tax on BHP Billiton and Rio Tinto to raise the payroll tax threshold for small to medium businesses from $850,000 to $5 million.

The measure would cost $880 million and would initially be in place for two years.

The CCI in WA has long called for payroll tax relief, and ultimately wants the impost abolished.

However chief executive Deidre Willmott said she did not support using proceeds of the proposed tax to fund a higher payroll tax threshold.

"In fact, [the mining tax] could itself cause damage to small business in the supply chain and employees through further job losses," she said.

"The proposal is only for two years so the question is, is this sustainable or is this going to be the start of a bumpy ride?

"We welcome any proposal to increase the threshold on payroll tax... but it has to be part of a sustainable proposal."

The CCI believed payroll tax relief should instead be funded through reduced government spending.

However Ms Willmott was pleased with the Nationals' overall focus on job creation.

Western Australia's payroll tax threshold was increased from $800,000 to $850,000 in July this year.

AustraliaPlus


 

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