NSW Budget payroll tax relief for SMEs welcomed
Small businesses will welcome the NSW government’s budget move today to provide payroll tax relief, as this is one of the biggest growth-blockers for the sector according to Australasia’s largest specialist funder of SMEs.
ScotPac CEO Jon Sutton welcomed New South Wales’ move to increase the payroll tax threshold to $1.2m, up from $1m, and encouraged other states to look at their payroll tax regimes.
Mr Sutton said coordinated action by all states to reduce or remove payroll tax would have a big impact in aiding a 2021 recovery for small businesses across Australia.
“Simplifying the complex national tax system, getting rid of state payroll taxes and cutting red tape nationally would have the biggest daily impact for Australia’s small to medium business sector,” he said.
“Our SME Growth Index surveys the small business sector across Australia twice a year, and business owners always list high taxes and confusing, multiple taxes as a significant barrier to growth.”
The NSW payroll tax move has been touted by NSW treasurer Dominic Perrottet as a tax cut for thousands of businesses to encourage job creation, and includes a decrease in the payroll tax rate. It follows their already-announced initiative to provide a four-year payroll tax-free period for businesses that create at least 30 new net jobs.
