The Liberal Party’s pledge to lift the payroll tax threshold by $50,000 if elected will create around 450 jobs for Western Australian workers, says WA’s peak business advocate.
Speaking at a CCI breakfast today, Treasurer Mike Nahan said a Liberal Government would lift the payroll tax threshold from $850,000 to $900,000 from January 1, 2018, which would provide tax relief for around 11,000 small and medium sized businesses.
The reform measure would see approximately 400 businesses newly exempt from paying payroll tax altogether.
Chamber of Commerce and Industry of Western Australia (CCI) Chief Executive Officer Deidre Willmott said CCI had long called for payroll tax reform and today’s announcement was a significant win for Mum-and-Dad businesses across the state, which would now have the extra funds they need to create more jobs for workers.
“CCI has long called for payroll tax reform to be a priority, so the WA business community is delighted by the Liberal Party’s pledge to lift the payroll tax threshold by $50,000 if they are returned to government next month,” Ms Willmott said.
“Lifting the payroll tax threshold by $50,000 will see around 400 businesses exempt from paying the tax altogether – a terrific win for those impacted. A further estimated 11,000 businesses will see their tax burden reduced, meaning they now have more cash to invest in the business, grow their operations and create jobs for young people, the unemployed and the community.
“Independent modelling shows that lifting the threshold by $100,000 would create nearly 900 jobs for workers across the economy, so this measure is likely to create around 450 jobs state-wide. As Treasurer Nahan said himself, it is business that creates jobs, not governments – four out of five jobs in WA are created by the private sector, so business is extremely pleased the Liberal Party has recognised this and committed to putting more cash back in the hands of small and medium sized businesses – where it belongs – so they can do what business does best, which is create jobs.
“CCI and the business community thank the Liberal Party for their payroll tax pledge and now call on WA Labor to do the same – the Opposition say they care about jobs, so its time for Mark McGowan to commit to payroll tax reform should Labor form the next State Government.”
Treasurer Nahan also announced at the CCI breakfast that if elected, the Liberal Party was committed to raising the current land tax exemption threshold from $300,001 to $360,000, to benefit around 20,000 land tax payers.
“CCI has also long called for the review of land tax, so this is another commitment that would have a positive impact on the business community,” Ms Willmott said.
“High land tax rates particularly disadvantage businesses that may have multiple sites, such as warehouses and shops – if enacted, the Liberal Party’s commitment is estimated to save 20,000 land tax payers up to $7 million a year, which will again have a positive flow-on effect to job creation and business growth.”