The WA Opposition has responded to CCIWA’s proposal to reduce the payroll tax burden, promising a 100 per cent rebate on payroll tax liability for businesses with payrolls up to $1.5 million if elected.
The WA Liberal Party also committed to providing a partial rebate, tapering down for businesses with payrolls up to $3m.
Sunday’s announcement follows a sustained CCIWA-led campaign to resolve WA’s payroll tax burden.
WA’s payroll tax burden is a primary concern for CCIWA Members and the decision by the WA Liberal Party is the first signals by one of the major parties during the State election campaign in support of change.
CCIWA Chief Economist Aaron Morey says that, despite the WA Government recently lifting the payroll tax threshold to $1m, businesses in the State still face a much higher payroll tax burden than in other states.
“[Payroll tax rates] puts WA businesses at a competitive disadvantage, stifling the growth of key sectors of the economy important for diversification, including manufacturing.
“With the recent fix to the GST system, there is now no reason why WA businesses should face higher taxes for creating jobs.
“Faced with a higher tax burden, the WA business community is fighting with one arm tied behind their back.”
Opposition Small Business spokesperson Alyssa Hayden says any reduction on payroll tax will help small businesses.
“We are aware of the financial challenges that many small businesses are facing through COVID and we need to help as many of them as possible to survive, recover and thrive.
“This will be particularly important once JobKeeper payments stop, as we already have too many West Australian’s out of work.”
Read the full statement by CCIWA here.
