Payroll tax reductions for regional companies ought to be included within the upcoming South Australian price range, the state’s peak business group says.
In a submission forward of SA’s newest monetary blueprint, the organisation mentioned regional corporations ought to get a 50 per cent low cost to ease prices and assist them compete.
Business SA’s General Manager of Policy and Advocacy Kendall Crowe mentioned payroll tax was probably the most constraining state-based taxes.
“We want to see our state’s regional businesses flourish. Payroll tax is a significant hindrance to growing and operating a small business,” he mentioned.
While SA adjusted payroll tax thresholds in 2019, companies with a turnover of greater than $1.7m nonetheless pay the identical fee they did in 2009.
Since then Victoria, NSW, the Northern Territory, and Tasmania have all lowered their common payroll tax charges, and each Victoria and Queensland launched regional reductions.
Mr Crowe mentioned that meant a business working in Mount Gambier, in SA’s southeast, might pay greater than 3 times the quantity of payroll tax than a competitor positioned 20 kilometres away and throughout the Victorian border.
“Such a difference in payroll tax rates means regional South Australian businesses, particularly along the Victorian border are significantly less competitive,” he mentioned.
“Introducing a 50 per cent discount on regional payroll tax would reduce this disparity and not only help these businesses to grow, but also attract new businesses and investment in the regions.”
Under the Business SA proposal, an organization would qualify for the low cost if the principal place of business was in a regional space and if at the least 85 per cent of its employees lived and labored within the space.
It estimated the reductions might assist greater than 700 regional enterprises.
The SA price range shall be handed down subsequent month.
Source: www.perthnow.com.au
