The West Australian : 2019-06-12

NEWS : 4 : 4

NEWS

NEWS 4 Wednesday, June 12, 2019 Campaign to ease burden on small business gerry weber open mon-thurs 9-5.30 fri 9-6 sat 9-5 sun 11-4 was holding WA back, payroll tax is holding WA jobs back,” he said. The 2010 Henry Tax Review noted payroll tax thresholds could “arguably” be a barrier for business growth because compliance and payroll tax costs created “an incentive to remain small.” However, it also noted most businesses were exempted from payroll tax because they fell below the threshold, and the narrower tax base meant the payroll tax rate had to be higher on larger businesses to raise a given amount of revenue. According to WA Treasury, about 8 per cent of companies in WA are subject to payroll tax. The McGowan Government is forecast to raise $3.7 billion from payroll tax in 2019-20. Mr Chaney added: “We support the Chamber of million) have higher thresholds. Only Victoria has a lower threshold ($650,000). The Chamber of Commerce and Industry WA said if the threshold was lifted $100,000 to $950,000 it would create almost 900 jobs within 12 months and boost the State’s economy by $283 million. “WA has the highest payroll tax burden — a literal tax on jobs — of any State in the nation,” CCI WA chief executive Chris Rodwell said. “It is more expensive to create a job here than anywhere else in Australia because of this State Government jobs tax. “Just like the GST distributi­on Wesfarmers can’t survive without small businesses — we depend on them in our supply chain and as customers.” WA has the secondhigh­est unemployme­nt rate in Australia, at 6.1 per cent, behind Tasmania’s 6.7 per cent. Companies in WA are subject to payroll tax when their total taxable wages exceed an annual threshold of $850,000, which is one of the lowest thresholds in Australia. New South Wales ($900,000), Queensland ($1.1 million), Tasmania ($1.25 million), South Australia ($1.5 million), the Northern Territory ($1.5 million) and the ACT ($2 EXCLUSIVE GARETH HUTCHENS Economics Editor german fashion One of Australia’s most respected businessme­n is calling on the McGowan Government to slash payroll tax, saying it needs to be cheaper to employ workers. Michael Chaney, the chairman of Wesfarmers, which owns Bunnings, Kmart and Target, said small businesses were struggling under WA’s payroll tax burden and it was dampening the economy. “Payroll tax is a burden on small businesses who want to create new jobs in WA and we all depend on small businesses to be successful,” Mr Chaney said. “Reducing payroll tax for small businesses will help create jobs in WA and support the State’s economic recovery. “Even a business as big as 20-25% off all winter exceptiona­l knitwear, tops jeans, jackets dresses & pants sizes 8-20 sorry, personal shoppers only free red catch c.a.t. bus from city to our door stop 17 main pic: luxury knit long cardi, sizes 10-16, was $219 now $159 left: beautiful soft handle tee sizes 10-16, was $119 now $89 starts today! ends june18th thompsons of west perth 1267 hay st great parking at rear 93218007 ph 20-25% off can’t be used with any other offers

© PressReader. All rights reserved.