Western Australia Minister Assisting The Treasurer Bill Marmion

State Says No to National Red Tape

Victor P Taffa

The Western Australian Government’s Decision not to adopt some of the Council of Australian Government’s (COAG) Recommendations for Payroll Tax minimises Red Tape in the Housing Sector.

Minister Assisting the Treasurer Bill Marmion said there was strong support from WA industry, including small business contractors, for the State Government’s Decision.

“I have responded to concerns raised by the Housing Industry Association and others that the measures, if adopted, could have forced new house prices up.” Mr. Marmion said.

“The Government was also concerned this measure would have increased the red tape burden for many local businesses.”

“COAG’s aim to have a more uniformed system meant that, in some cases, the best features of our own State system were being compromised.”

The Minister said while the State Government was committed to uniform regulations, this would only occur where it resulted in a better outcome for West Australians.

“For example, additional compliance costs would have included the need for building companies to track how many days each contractor worked for them in a year and who else the contractor may have employed to complete the work.” the Minister said.

“We could not discount the fact that additional compliance costs would ultimately be passed on to customers through increased building costs.” Mr. Marmion said.

Editor Victor P Taffa does not support Payroll Tax and the Problem it is that it exists at all. Payroll Tax was introduced by Whitlam Labor Government Minister Clyde Cameron in 1973 during a time of full employment. At the time Australia had a Manufacturing Industry to speak of and a Tariff Regime that protected our Industries. On both accounts Australia has gone backwards ever since. Countries such as The United States, France and India still maintain a Tariff Regime.

South Australia Opposition Leader Isobel Redmond

Liberals cut payroll tax to help businesses grow

Victor P Taffa

A Redmond Liberal Government will raise the payroll tax threshold to $700,000 over the next two years – furthering its commitment to reform South Australia’s uncompetitive tax regime.

Over 600 South Australian small businesses will no longer pay payroll tax, with others saving up to $4,950 per annum because of the initiative and is part of a raft of reforms announced today by Opposition Leader Isobel Redmond.

Ms. Redmond said small businesses were being punished by the Rann Government’s unfair tax regime that penalises business operators for being successful, wanting to grow and employ more people.

“Why on earth would you penalise a business for expanding and employing more people.” Ms. Redmond said.

“Small businesses account for over 96 % of businesses in South Australia and employ about 55 % of the private sector’s workforce – more than 400,000 people.”

“But the Rann Government has punished small business by imposing an unfair tax regime that makes South Australian businesses uncompetitive and the highest taxed in the nation.”

“The Liberals are committed to meaningful reform to support such a fundamental part of the state’s economy – it’s vital to the future growth of South Australia.”

The Liberals’ initiatives for small businesses include:

• Raising the payroll tax threshold from its current level of $600,000 to $650,000 from 1 July 2011 and then $700,000 from 1 July 2012;

• Providing a 100 % payroll tax exemption for the wages of trainees and apprentices who are employed under an initial approved training contract, regardless of age;

The estimated cost to the budget of the threshold change and apprentice exemption is $31 Million per annum once fully implemented.

These initiatives are in addition to those already made by the Liberals to reform WorkCover to rein in its unfunded liability and reduce levy rates for employees and to reduce the burden of land tax for investors and first home buyers.

Payroll Tax was introduced by Hindmarsh MP and Whitlam Government Minister for Labour Clyde Cameron in 1973.

Under the provisions of the relevant Electoral Act responsibility for all election comment is assumed by Editor Victor P Taffa. The Registered office of The Southern Thunderer is at 4/69a Darvall Road, West Ryde NSW 2114.