Calls for payroll tax overhaul in ‘challenging’ time for NSW business

The NSW Business Chamber has called for the NSW government to increase the payroll tax threshold to a $1 million to stop businesses crossing the border.

Murray Riverina regional manager Andrew Cottrill said NSW had the third lowest threshold in the country.

He said Victoria has a lower threshold but the regional reductions counteracts that.

“The Victorian government has a significantly reduced regional payroll tax rate, making it very challenging for NSW border regions to attract job creating investments,” Mr Cottrill said. 

Albury member Greg Aplin said an Inquiry into Zonal Taxation, which he is a part of, was looking into the issue.

NSW Business Chamber submitted their case to the inquiry, which will prepare a report to in the first half of the parliamentary year. 

RELATED:

Mr Aplin said the submission would “absolutely” be considered.

“I don’t want to preempt the findings but we’re seriously considering the way in which we support the attraction of businesses to regional areas and make conditions conducive to increasing employment in regional areas,” he said.

Mr Cottrill said payroll tax was a tax on job creation.

“Regional NSW has a higher relative share of businesses, which due to employee numbers and associated annual payroll budgets sit just over the payroll tax threshold,” he said. 

“These are typically mum and dad businesses employing fewer than 15 staff, so we believe they shouldn’t be caught up in the complication of processing payroll tax or be penalised for hiring more staff.”