NSW Liberals and Nationals to Deliver the Most Competitive Payroll Tax Regime in Australia

Member for Manly, James Griffin MP said a strong economy was essential to creating opportunities for local families and businesses.

“Small businesses across our area of Manly are doing it tough, facing higher costs, weaker confidence and growing uncertainty about the future,” Mr Griffin said.

“They want to invest, hire more people and grow their business and by extension our local economy, but the Mins Labor Government is making it harder for them to get ahead.”

A Sloane Liberal and Nationals Government will create the most competitive payroll tax regime in Australia by:

• Raising the payroll tax threshold from $1.2 million to $1.5 million.
• Reducing the payroll tax rate from 5.45 per cent to 4.75 per cent for businesses with a total Australian payroll below $10 million.
• Introducing CPI indexation to payroll tax thresholds to eliminate bracket creep.

These reforms will remove around 4,000 businesses from the payroll tax system altogether and ensure a further 25,000 businesses receive the lowest payroll tax rate of any Australian state.

For many businesses, this will mean annual savings of up to $75,850.

The NSW Liberals and Nationals will also restore certainty for business by:

• Repealing Labor’s union spy powers laws.
• Doubling the funding for Business Connect.
• Putting downward pressure on business power bills by increasing energy supply, improving energy security and generating more power closer to where it is used, reducing reliance on costly transmission infrastructure.
• Developing five sector strategies covering agriculture, financial and insurance services, health care, construction and manufacturing, and retail, hospitality and tourism.

Leader of the Opposition Kellie Sloane said growing the economy starts with creating the conditions for new and better paid jobs.

“Payroll tax is a tax on jobs, investment and growth. If we want more businesses to invest, employ more people and expand, we need a more competitive tax system.”

Leader of the Nationals and Shadow Minister for Small Business said the reforms reflected the NSW Liberals and Nationals’ belief that economic growth comes from hardworking families, small businesses and the private sector, not bigger government. 

This is part of the Liberal and Nationals practical plan to help families get ahead and stay ahead, support businesses to grow and create jobs, and build a stronger future for NSW.