CCIWA Chief Economist
The Chamber of Commerce and Industry WA (CCIWA) today kicks off a new campaign for the State Government to ease the payroll tax burden faced by WA businesses, revealing they bear the stiffest penalties for employing people of any State in Australia. Accompanying the release of our Pre-Budget Submission 2023-24, CCIWA has launched a new website and online tool to show WA businesses how their payroll tax burden compares.
For example, a business with around 35 staff would pay around $39,000 more in tax in WA, than if they operated in Queensland.
CCIWA’s new recommendations include raising the payroll tax threshold to $1.3m and a 15% rebate on liabilities up to $4m and tapering down to zero at $7.5m.
For WA businesses to face the biggest burden in the country is not only unfair, but works directly against efforts to diversify our economy. WA businesses face the same rising cost pressure as households. This is on top of supply chain disruptions, workforce shortages and global uncertainty. Without relief, we’re asking our local small and family businesses to compete with one arm tied behind their backs.
National data collected for CCIWA in 2021 showed WA’s high payroll tax put businesses and investors off. Among large businesses, 81% said WA’s rate of payroll tax affected their view of our state as a place to expand. Amid workforce, inflation, energy and geopolitical crises, WA’s enviable fiscal position should be used to make our economy more competitive, diverse and resilient.
CCIWA’s Pre-Budget Submission also emphasised the need to keep the cost of doing business down, secure a skilled workforce, strengthen emerging industries and attract investment. In particular, reflecting the need for a low-carbon, diversified economy, we urge the State Government to support small and medium businesses to reduce their emissions.
Our payroll tax campaign: