CAMPAIGN TO EASE THE ‘TAX ON JOBS’
Business leaders are calling on the McGowan Government to slash payroll tax, estimating the move would create an extra 900 jobs Statewide within a year.
Michael Chaney, the former boss of Wesfarmers, said small business was struggling with the tax and it was dampening the economy.
Treasurer Ben Wyatt conceded the tax was unpopular.
Payroll tax is always in the back of the mind of Skindeep Medi-Spas founder Helen Golisano, who describes the measure as a “punishment for employing people”.
With 26 staff on the books across four spas in Perth, she — like many business owners — is on the lookout for ways not to get stung by too much tax. Mrs Golisano said the tax was antiquated and a WA Chamber of Commerce and Industry pitch for the threshold to be raised from $850,000 to $950,000 should happen as the minimum level of reform.
“Our wages have gone up significantly in the last five years in our industry but the payroll tax threshold hasn’t,” she said. “(The threshold has) got to go up, it has to go up.”
The pressure of payroll tax was a factor in Mrs Golisano selling off the licence for one of her shopfronts last year.
“It helped drop us down significantly,” she said. “It’s always in the back of my mind.” Another way of keeping on more staff has been the opportunity for Mrs Golisano to offset tax payments by training and upskilling her employees. The training provider she works with, however, told her last week the exemption was being removed from July 1.
Employee Sari Golisano.