South Australia Premier Steven Marshall
Premier Spruiks State Government’s Payroll Tax Cuts
Victor P Taffa
Premier Steven Marshall has toured family-owned dairy producer and exporter, Moo Premium Foods, in Adelaide’s eastern suburbs this morning as he continues to sell the State Government’s major payroll tax relief reforms.
Glynde company which employs 22 people and produces more than 100,000 tubs of yoghurt each week is one of thousands of small businesses across South Australia to benefit from the payroll tax cuts to come into effect on January 1.
“Small businesses like Moo Premium Foods underpin our state’s economy and this government is committed to helping ease their cost base so they can grow, thrive and ultimately employ more South Australians.” Premier Marshall said.
“This is a significant kick-starter for our economy and will make South Australia a far more attractive place in which to invest.”
“By cutting payroll tax for all small businesses we not only deliver on a key election promise within our first 100 days, we help stimulate real jobs growth. Businesses have been crying out for this type of reform for years.”
Payroll Tax (Exemption for Small Business) Amendment Bill 2018, introduced to State Parliament, lifts the existing tax-exempt threshold from $600,000 to $1.5 Million saving companies up to $44,550 a year.
In an added boost, a further 400 businesses with payrolls between $1.5 Million-$1.7 Million will receive a reduction in the amount of payroll tax they are required to pay.
Premier Marshall said the change would give greater confidence to small businesses wanting to expand.
“This significant reform will put around $44 Million a year back into the pockets of small businesses to reinvest into their operations to drive growth.” Premier Marshall said.
“Marshall Government is sending a clear signal that South Australia is open for business.”
Introduction Of Payroll Tax
Payroll Tax was introduced by Federal Labor Minister for Labour Clyde Cameron in 1973 at a time when unemployment was 1%.
At the time Australia had a large manufacturing base that included 5 car companies producing vehicles for Australia and also exporting overseas.
Coal Fired Power production of electricity was not seen as dirty which also kept a lid on electricity prices.
Lower Electricity Prices also drove an increase in employment.
Introduction of Payroll Tax was seen as a harmless measure at the time however in 2018 with no car companies producing vehicles for Australia or exporting overseas it is time that every government abolished Payroll Tax.
Unemployment in Australia as at May 2018 was 5.4%.
Clyde Cameron was Federal Member for Hindmarsh in South Australia from 1949-80.
When Queensland National Party Premier Sir Joh Bjelke-Petersen abolished Death Duties in 1979 this led to people moving to Queensland. As soon as Death Duties were abolished Queensland government revenues improved at the expense of other states.
Subsequently every government abolished Death Duties within a short space of time.
Should one government abolish Payroll Tax the same positive impact on government revenues will be felt and every other government will follow suit within a short space of time.
Payroll Tax is an insidious tax on employment.