Business tells leaders how to create 900 jobs

Western Australia’s peak business advocate has penned a plan for jobs and sent it to Premier Colin Barnett and WA Labor leader Mark McGowan.

In a government how-to guide sent by the Chamber of Commerce and Industry of Western Australia (CCI), business has called on the leaders of both major parties to commit to real, permanent payroll tax reform to create nearly 900 jobs for West Australian workers.

Independent modelling has found that lifting the payroll tax threshold by $100,000 would see 278 direct jobs and 602 indirect jobs created across the economy. A $100,000 threshold lift would directly benefit between 10,000 and 12,000 small and medium sized businesses.

CCI Chief Executive Officer Deidre Willmott said if either party was serious about jobs and helping Mum-and-Dad businesses, they would commit to meaningful payroll tax reform as a priority for the next term of government.

“All parties contesting the state election need to know that its business that creates jobs – not governments,” Ms Willmott said.

“The WA public sector employed approximately 200,000 people over the past five years, while the private sector put wages in the pockets of more than 1.1 million West Australians – if you want to put West Australians back to work, you need to help business work and that means lifting the payroll tax threshold as a matter of urgency.

“Small and medium businesses are tearing their hair out and telling CCI that they want to be able to give jobs to workers, but their business simply cannot withstand hitting the $850,000 payroll tax threshold and being crushed by the extra tax burden – Mum-and-Dad businesses need money back in their pocket so they can grow their business and create jobs for young people, unemployed workers and the rest of the community.

“CCI has a plan for job creation – whichever party forms the next State Government should permanently lift the payroll tax threshold to help businesses grow and create 900 jobs for West Australian workers. At a minimum, payroll tax should be immediately indexed to CPI to prevent further bracket creep and over the next term of government, the threshold should begin increasing incrementally to eventually reach $1.5 million, before the tax is abolished completely.

“However –the WA Nationals’ proposal to fund temporary payroll tax relief by slugging mining companies with a tax hike is not the way West Australians should aspire to do business. This toxic proposal will harm local businesses throughout the resources supply chain, damage business confidence and deter investment, all the while sending 90 per cent of the proceeds to other states through the GST.

“WA business doesn’t want Brendon Grylls to rob Peter to pay Paul – what WA business needs is a permanent lift in the payroll tax threshold, not a two year break that simply wreaks havoc on our resources industry.

“This election, CCI calls on both leaders to stand up for business and commit to permanent payroll tax reform, to show the community they are serious about bringing down the jobless rate and putting West Australians back to work.”

To read the full brief for an incoming government, please click here.

Media contact: Kate Hodges – 0448 928 227

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