NSW LOSING OUT TO QLD DUE TO PAYROLL TAX

NSW LOSING OUT TO QLD DUE TO PAYROLL TAX

19 July 2010

It’s not just the State of Origin where Queensland has the leg up on New South Wales.

According to Nationals Member for Lismore Thomas George, the maroon state continues to be out in front on the business front thanks to the Labor Government and its token payroll tax cuts announced in the recent Budget.

“Even when the NSW reforms are fully phased in by January next year, our payroll tax will still be 5.5 per cent with a threshold of about $700,000 compared to today’s Queensland 4.75 per cent with a $1 million threshold,” Mr George said.

“That means a Northern Rivers business with a $900,000 wages bill will pay $54,000 this year and $49,500 in 2011, but a similar size business over the border pays nothing.

“Businesses in our region are losing out to Queensland competitors. We are hardly a state committed to encouraging small business. Labor’s payroll tax cuts are nowhere near enough to compete with Queensland.”

Mr George said it should be remembered that whilst many businesses don’t pay payroll tax, those that do, employ the majority.

“Ninety per cent of businesses don’t pay payroll tax, but the 10 per cent who do, employ 70 per cent of the workforce,” Mr George said. “So issues involving payroll tax are very important to our competitiveness.”

Mr George said the real problem was the threshold.

“It is very hard to compete when you have to factor a thousand dollar-a-week payroll tax bill into your quotes for work,” he said.

“The NSW Liberals & Nationals however aims to rectify this problem with their Jobs Action Plan. The plan is unashamedly targeted at bringing new jobs to this State.

“Our commitment to make the first 100,000 jobs payroll tax-free sends a clear message that NSW is open for business.”

Under the NSW Liberals & Nationals Jobs Action Plan businesses that increase employment levels will not pay any payroll tax on the additional employees for their first year of employment.

The Jobs Action Plan will work by:

Lismore Contact Details:

Office: 55 Carrington Street  LISMORE
Postal: PO Box 52  LISMORE  NSW  2480
Telephone: 02 6621 3624
Facsimile: 02 6622 1403
Email: lismore@parliament.nsw.gov.au

Murwillumbah Contact Details:

Telephone: 02 6672 7577