Strong signs but payroll tax help needed

OWNERS of the statewide hospitality industry supplier, Tasmanian Hotels and Catering Supplies, are pleased with the positive signs in the State Budget but would like to see more payroll tax support.

The tourism boom has been good for the business owned by Robert Dutton, Craig O’ Brien and Brad Dutton.

“It is pleasing that the government is continuing to invest in the industry,” Hobart manager Brad Dutton said.

“The $21 million for Cradle Mountain will be good for our business and it is good to see emphasis on the unique, iconic attractions that they don’t have anywhere else in the world.”

The company supplies hotels, restaurants, cafes, hospitals and bakeries with up to 30,000 lines of product from teaspoons and glassware to crockery and equipment.

“The government investment of $11 million in tourism marketing brings more tourists, which means more hospitality establishments need to cater for them,” he said.

“So there will be more competition among them to present a good product and attract customers.”

Since buying the business in 2010 the owners have expanded from 23 employees to the present level of 55 and opened a new branch in Devonport.

Before the Budget, Mr Dutton was hoping for payroll tax relief and help with Bass Strait freight costs.

Mr Dutton said a policy to provide payroll tax relief for businesses that employed apprentices would help in a small way.

“It’s a start but they really need to get more aggressive on payroll tax,” he said.

Mr Dutton said he would like to have seen a significant increase to the payroll tax threshold from $1.25 million a year to $3 million or $4 million to help small and mediumsized businesses.

Mr Dutton said the company has doubled its turnover since 2010 mainly as a result of increased tourism numbers.

The investment of $11 million in marketing brings more people which all means more people visiting the businesses that we supply