The Nationals WA have today announced their commitment to deliver sweeping changes to the State’s payroll tax framework if elected to Government at the March 2017 State election.
In an address to The Nationals WA Annual State Conference, Leader Brendon Grylls unveiled the party’s plan to deliver significant payroll tax relief for businesses to encourage expansion, investment into new equipment and stimulate employment.
“Under our plan, The Nationals WA will increase the payroll tax exemption threshold from $850,000 to $5 million for a period of two financial years,” Mr Grylls said. “It will also see the diminishing threshold retained for businesses with a wage bill between $5 million and $7.5 million offering further tax relief.”
Mr Grylls said 10,000 of the 17,000 WA businesses that pay payroll tax would be exempt under the plan, which equated to more than 60 per cent of businesses.
“Industry lobby groups and small to medium businesses have been seeking reform to payroll tax for some time because it is often considered an inhibitor to business growth and development,” Mr Grylls said.
“Major payroll tax reductions will help stimulate employment and make it easier for employers to invest in equipment, infrastructure and hire new workers.”
Mr Grylls said the plan would also deliver the Small Business Kick-start Grant which would provide $5000 per employee for non-payroll taxable small businesses that create new jobs in their business and maintain the position for one year.
“Small businesses play an important role in employing local workers and providing training and skills development,” Mr Grylls said.
Mr Grylls said The Nationals payroll tax reform agenda would be funded by revenue raised by increasing the iron ore Special Lease Rental from 25 cents per tonne to $5 per tonne.
“It is our aim to deliver payroll tax reform over the long term, however this cannot happen unless the State’s finances are in order,” Mr Grylls said.
“The Nationals have announced our plan to return the budget to surplus whilst maintaining investment in critical infrastructure and services which are needed in a softening economy.
“The Nationals will deliver our long term vision to support small to medium business through payroll tax relief when the Federal Government either implements a floor on the GST relativity at 75 cents in the dollar or exempts the iron ore Special Lease Rental from GST calculations.”