Coalition proposes new payroll tax legislation

THE NSW Liberal and National parties have proposed reforms to existing payroll tax legislation that they say could provide relief for small and family businesses struggling with rising costs.

Member for Myall Lakes Tanya Thompson MP said that the proposed reforms would reduce the payroll tax burden on eligible businesses, making it easier for them to invest, employ more people and continue operating in regional communities.

Mrs Thompson said local businesses were doing it tough, with many facing increasing costs at a time when they could least afford it.

“Our small and family businesses are the backbone of our communities. From our cafes and retail stores to our tradies and local employers, they play such an important role in keeping our towns going,” Mrs Thompson said.

“These are the people who employ our locals, support our sporting clubs and community groups, and put so much back into the places we call home.

“I know firsthand what it takes to run a small business, and I know just how difficult it can be when costs keep going up and there is very little room to move.”

The proposed legislation would deliver significant payroll tax reforms, including:

• Increasing the payroll tax threshold from $1.2 million to $1.5 million.
• Reducing the payroll tax rate from 5.45 per cent to 4.75 per cent for businesses with a total Australian payroll below $10 million.
• Introducing CPI indexation to payroll tax thresholds to prevent businesses being pushed into higher tax obligations simply because of inflation.

Mrs Thompson said the reforms would provide much-needed breathing room for eligible businesses throughout the Myall Lakes.

“When a local business succeeds, the benefits flow throughout our entire community,” Mrs Thompson said.

“Our business owners are hardworking, resilient people who are already navigating significant challenges. They shouldn’t be held back by a tax system that makes it harder to grow and employ people.”

The legislation comes amid growing concerns about business confidence across NSW, with 6,200 businesses reportedly closing their doors last year.

NSW Liberal Leader Kellie Sloane said supporting businesses was essential to restoring economic growth, while NSW Nationals Leader and Shadow Minister for Small Business Gurmesh Singh highlighted the impact of rising taxes, fees and charges on already stretched businesses.

“This is about giving businesses some breathing room and making sure they have every opportunity to succeed,” Mrs Thompson said.