“We strongly welcome the WA Opposition’s pledge to raise the payroll tax threshold to $1.5 million. Lifting the threshold is something CCIWA has been calling for since 2023.
“Payroll tax punishes success and prevents growth, and WA businesses are paying more than most other states, despite having the strongest economy in the nation.
“In the years since payroll tax was last adjusted in WA, we’ve seen wage costs spiral, which means more businesses are now hitting that $1 million threshold than ever before.
“These businesses aren’t big businesses. A small physiotherapy clinic would hit that with five or six staff. A suburban café would reach that limit with chefs and waitstaff.
“A business that paid out $800,000 in wages in 2020 would now be paying more than $1 million just through wage cost increases and would therefore be hit with payroll tax.
“Some small businesses have told us they are deliberately staying small to avoid being hit with a big tax bill.
“We believe the economic benefits of lifting the payroll tax threshold would offset the lost Government revenue by giving smaller businesses the freedom to expand, innovate and create new jobs.
“The current system stifles growth, slows innovation and sends WA jobs East and offshore.”
