In the wake of the chamber’s latest business survey, which showed a sharp drop in sales for the first three months of 2018, regional manager Andrew Cottrill said more needed to be done to encourage growth in Albury and surrounding centres.

Currently in NSW, the threshold is $750,000 annually with a tax rate of 5.45 per cent. Victoria’s threshold will increase to $650,000 on July 1 this year but, significantly, the tax rate for regional employers is 3.65 per cent – well below the state’s 4.85 per cent figure.

Using the example of Seeley International’s decision to cross from Albury to Wodonga, Mr Cottrill said while it was good to see those jobs remain locally, it had negative impacts on the NSW side of the Border.

“The city loses rates revenue, flow-on economic expenditure and local customers. The state loses revenue and potential growth,” he said.

“(Lifting the threshold to $1 million) would provide a significant advantage to NSW employers, particularly those with less than 30 staff.

“Whilst I can appreciate the Two Cities One Community stance Albury and Wodonga are adopting will allow both cities to leverage their combined strength in attracting new investment, there are definitely impacts to the losing city when an existing business moves.”

Member for Albury Greg Aplin, who is deputy chair of a committee conducting an inquiry into zonal taxation, said earlier this year tax cuts were not necessarily the way to stop businesses leaving the state for a better deal, pointing to Bunnings’ decision to shift its trade centre from Wodonga to Albury.

NSW Treasurer Dominic Perrottet said the government had started a review of the administration of payroll tax in the state, on the back of cutting $1.6 billion in taxes for families, farmers and small business in the 2017-18 budget.

“Since 2011, the payroll tax threshold in NSW has been raised three times under the Liberals and Nationals,” he said.

“NSW has been ranked as the top performing economy for 14 straight quarters in CommSec’s State of the States report.

“We are always looking at ways to make business more competitive and earlier this year we announced the first task of the NSW Productivity Commission is to perform a comprehensive review of payroll tax administration.”

Mr Cottrill said it was crucial the government supported the region due to its proximity to Victoria. He lauded the NSW government’s $11 million for the ‘Murray River Regional Experiences’ but said “there are many other job-creating projects which still require funding”.

HIGH energy costs are a key factor in a drop in sales across the Murray Riverina region, according to NSW Business Chamber regional manager Andrew Cottrill.

Mr Cottrill said youth unemployment was “at a staggering 22 per cent” and that, coupled with surging energy prices, was hurting the business sector around Albury.

“We need to do more to provide our young people with better and more targeted training so that they can secure employment,” Mr Cottrill said after the chamber’s latest business survey, which takes in the first three months of 2018.

“Profitability and growth are being constrained by the continued decline in energy affordability, business operating costs and skill shortages.

“Energy costs, in particular, are a major concern with 50 per cent of businesses surveyed highlighting it as a key cost control priority.”