Cuts to small business payroll tax

Riverland to benefit from cuts to small business payroll tax

The Riverland economy will benefit from a State Liberal plan to cut the payroll tax burden for small businesses by $44.5 million a year if elected in March.

Under the State Liberals’ plan, businesses with taxable payrolls of up to $1.5 million will be exempt from paying any payroll tax from 1 January 2019.

Member for Chaffey Tim Whetstone said small businesses are the backbone of the Riverland economy and this policy would be a game changer for the region.

"Riverland small businesses have been bogged down by sky rocketing taxes and utility bills and the State Liberals recognise the need to ease that burden after 16 years of Labor," said Mr Whetstone.

"This policy really is a game changer for regional areas such as the Riverland, as these small businesses can invest the money they have been allocating on payroll tax to employ more staff and put these important dollars back into the business.

"The Riverland has so many small businesses who stand to benefit from this tax relief such as those in the citrus and agriculture sector more broadly, tourism operators and even local restaurants and pubs.

"Many of these small businesses are family owned and run, and their livelihoods depend on running a successful business and we want to support them by cutting taxable payrolls of up to $1.5 million."

State Liberal Leader Steven Marshall said payroll tax is a tax on jobs and it prevents small and medium businesses from creating more jobs for South Australians.

"That’s why we will cut the payroll tax burden for small businesses by $44.5 million a year to help create more job opportunities for South Australians," said Mr Marshall.

"There are around 135,000 South Australians who are either unemployed or wanting more work.

"This major tax reform will cut the cost of doing business in South Australia by $155 million over the forward estimates for thousands of small businesses, incentivising them to create thousands of new jobs.

"South Australian businesses are drowning under the burden of red tape and skyrocketing business costs such as electricity bills and council rates, as well as taxes like the ESL and payroll tax.

"That’s why we will cut this harmful tax on jobs, helping small businesses grow into medium businesses and employ more South Australians. Contact: Tim Whetstone 0428 617 800

"This reform is part of our plan to take to handbrake off the South Australian economy and create more jobs, lower costs and deliver better services."

The Liberal payroll tax reform package will also give confidence to the more than 130,000 micro-businesses and sole traders who can create more jobs knowing that they won’t be hit with an extra tax as soon as they employ more South Australians.

The legislative change required will be to exempt businesses with payrolls between the existing threshold of $600,000 and $1,500,000 from paying any payroll tax.

 

media release