In Business

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 p.a. 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.” Ms. Redmond said.

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 p.a. 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.

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