CCIWA and the Chamber of Minerals and Energy WA (CME) have united with six other key industry groups to advocate for payroll tax relief for small and medium-sized businesses.
Together, CCIWA, CME, Australian Hotels Association WA, Australian Mining and Exploration Council, Australian Medical Association WA, Tourism Council WA, Housing Industry Association WA and National Retailers Association and Franchising Council of Australia, represent thousands of WA employers across every sector calling for reform to WA’s uncompetitive payroll tax system.
WA businesses have the highest payroll tax burden in the country, meaning WA businesses pay more than an identical business in any other state.
READ MORE ABOUT WA’S UNFAIR PAYROLL TAX
Small businesses need payroll tax change
Payroll tax is the number one issue businesses would like to see addressed at the March 2025 State Election, according to CCIWA’s June Business Confidence Survey of more than 800 businesses.
Since March 2023, the quarterly survey has consistently found rising operating costs to be the biggest challenge for businesses.
CCIWA Chief Executive Chris Rodwell says a 13% increase in wages since 2020 has 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 says.
“We know than some businesses choose to deliberately stay small to avoid having to pay this tax, which punishes job creation and success.”
Reform would bring relief to every sector
CME Chief Executive Rebecca Tomkinson says any reform to relieve the pressure from payroll tax would be welcome 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 says.
“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.”
Tomkinson says 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 says.
“It increases confidence in our economy, helps to attract investment and keeps more jobs in WA.”
To be part of WA’s peak business organisation, get in touch via 1300 422 492 or [email protected].
