CCIWA has joined forces with some of WA’s peak business and industry groups to call on the State Government to deliver payroll tax relief in the upcoming budget. 

Joining CCIWA is the Association of Mining and Exploration Companies, the Australian Hotels Association WA, the Housing Industry Association WA, the Tourism Council of WA, the National Retail Association, the Franchise Council of Australia and the Australian Medical Association (WA).

The groups, which say the tax punishes success and job creation, represent thousands of employers across every sector in the WA economy. 

READ MORE ABOUT WA’S UNFAIR PAYROLL TAX 

WA has the highest payroll tax burden in the country, with an average WA business paying more than an identical business in another state, despite our nation-leading economy. 

The unfair payroll tax system is threatening WA’s reputation as a place to invest and do business.  

Industry groups have proposed a sensible reform model aimed at offering much-needed relief to small and family businesses, while protecting the budget bottom line. 

Preferred payroll tax model 

The model would raise the threshold for the tax kicking in from $1 million in payroll to $1.3 million.

Once payroll tax does kick in at $1.3 million, there would be a 15% rebate for businesses that tapers downward to reach zero for larger employing businesses. 

Independent research commissioned by CCIWA in 2023 revealed the reform proposal would create $1.35 billion in economic benefit each year, including through interstate and overseas investment and reinvestment by businesses

WA businesses across every industry have consistently highlighted rising costs as the number one barrier to growth over the past 12-18 months, surpassing skills shortages, weak demand and supply chain challenges.  

The industry groups backing the campaign for payroll tax reform have co-signed a letter to WA Treasurer Rita Saffioti, urging her to consider tax relief for businesses as she prepares to hand down her first budget as Treasurer, and the last before the next State Election in March 2025. 

“We’ve seen from our quarterly Business Confidence survey that it’s a tough time to own a business in WA, with soaring costs driven by high inflation,” says CCIWA Chief Economist Aaron Morey. 

“There’s not much a State Government can do about that but payroll tax is one lever they can pull to give small and family businesses a break.  

“It’s not fair that a business in WA is paying more payroll tax than an identical business in another state. We think now is the right time to reform this unfair tax.” 

 

To be part of WA’s peak business organisation, get in touch via 1300 422 492 or [email protected].