If elected a Marshall Liberal Government will scrap payroll tax for all small businesses in South Australia to create more jobs.
Under the State Liberals’ plan businesses with taxable payrolls of up to $1.5 million will be exempt from paying any payroll tax from 1 January 2019.
“Payroll tax is a tax on jobs and it prevents small and medium businesses from creating more jobs for South Australians,” said State Liberal Leader Steven Marshall.
“That’s why we will cut the payroll tax burden for small businesses by $44.5 million a year to help create more job opportunities for South Australians.
“There are around 135,000 South Australians who are either unemployed or wanting more work.
“This major tax reform will cut the cost of doing business in South Australia by $155 million over the forward estimates for thousands of small businesses, incentivising them to create thousands of new jobs.
“South Australian businesses are drowning under the burden of red tape and skyrocketing business costs such as electricity bills and council rates, as well as taxes like the ESL and payroll tax.
“That’s why we will cut this harmful tax on jobs, helping small businesses grow into medium businesses and employ more South Australians.
“This reform will deliver broad-based change to the state’s economic settings by improving our competitiveness and investment attractiveness, rather than attempting to pick winners amongst individual businesses.
“Our state is already a great place to live and this reform will make South Australia an attractive place to invest and run a business.
“This reform is part of our plan to take to handbrake off the South Australian economy and create more jobs, lower costs and deliver better services.”
The Liberal payroll tax reform package will also give confidence to the more than 130,000 micro-businesses and sole traders who can create more jobs knowing that they won’t be hit with an extra tax as soon as they employ more South Australians.
The legislative change required will be to exempt businesses with payrolls between the existing threshold of $600,000 and $1,500,000 from paying any payroll tax.