Tuesday, 17 November 2020
NORTHERN Tablelands MP Adam Marshall has welcomed two significant changes to the State’s Payroll Tax system announced in today’s 2020-21 NSW Budget, with the tax threshold set to be lifted to $1.2 million dollars and the rate cut to 4.85 per cent, the lowest in the nation.
Mr Marshall said no matter the size of the business, today’s changes would put much needed cash back into the pockets of the region’s hard-working business operators.
“Payroll Tax is by far one of the biggest inhibitors preventing businesses in the Northern Tablelands putting on new staff or expanding their operations,” Mr Marshall said.
“Today’s Budget announcement changes that, with the threshold to be lifted to $1.2 million
“This increase comes off the back of last year’s Budget announcement which saw the threshold rise from $850,000 to $1million over a three-year period.
“With an increase of just $200,000, an extra 3,500 NSW businesses will be released from the burden of Payroll Tax, injecting thousands of dollars back into their bottom lines and allowing them to reinvest in new plant and machinery, new stuff and new opportunities.
“The good news doesn’t stop there with the current Payroll Tax rate of 5.45 per cent to slashed by more than half-a-percent, freeing up capital for the region’s biggest employers, like Bindaree Beef, to explore future market opportunities and expand their enterprises.
“As we continue along the path of economic recovery from COVID-19 the Government must continue to make these bold tax reforms creating an environment where businesses are encouraged to dream big and prosper.”
Mr Marshall said when it came to Payroll Tax the fight was not over.
“While year-on-year we are continuing to see shifts to the Payroll Tax threshold, I will continue to advocate for regional businesses to be exempt from this growth-stifling tax,” he said.
“The last thing we need in the current climate is a successful, innovative business holding-off from expanding its operation out of fear of hitting the payroll tax threshold.
“Furthermore, I would like to see further breaks offered to entice businesses to relocate from city to country, creating new opportunities for regional communities.
“Today’s announcement is fantastic news for local business owners – our region is growing with towns such as Inverell showing strong growth, tourism dollars starting to pour in, services industries taking off and the strong commodities sector supporting new agricultural endeavours over the past few years.”