The Chamber of Minerals and Energy of WA (CME) has joined CCIWA and other industry groups to call for payroll tax relief for small and medium-sized businesses in WA.
CME Chief Executive, Rebecca Tomkinson, said any reform to relieve the pressure from payroll tax would be welcomed by businesses across every sector.
“Payroll tax is having a significant impact on the small and medium-sized businesses in regional WA who support our mining communities and contribute to the vibrancy and liveability of local towns,” she said.
“It’s also a burden on the many smaller businesses along the mining supply chain, including manufacturers and service providers, as well as junior miners who are yet to make a profit but are still hit with payroll tax.”
Ms Tomkinson said providing payroll tax relief to small and medium sized businesses would have flow-on impacts across the whole of the economy.
“If smaller businesses are doing well, that’s good for every business in the state,” she said.
“It increases confidence in our economy, helps to attract investment and keeps more jobs in WA.”
WA businesses have the highest payroll tax burden in the country.
A recent CCIWA survey of more than 800 businesses identified payroll tax as the number one issue they would like to see addressed at the March state election.
CCIWA Chief Executive, Chris Rodwell, said a 13% increase in wages since 2020 had pushed more small businesses into the payroll tax liability threshold.
“When you consider the rising costs of everything from wages to insurance, utilities, rent, materials, to then be slugged with the nation’s highest payroll tax is really rubbing salt in the wound for small and family businesses,” he said.
“We know than some businesses choose to deliberately stay small to avoid having to pay this tax, which punishes job creation and success.”
CME joins CCIWA, Australian Hotels Association WA, Australian Mining and Exploration Council, Australian Medical Association WA, Tourism Council WA, Housing Industry Association WA, National Retailers Association and Franchising Council of Australia, in calling for reform to WA’s uncompetitive payroll tax system.
