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The government announced last week that exemptions will be limited.

Byrnecut slams payroll changes

Byrnecut executive chairman Steve Coughlan has slammed the state government’s decision to crack down on payroll tax exemptions, saying his company will no longer receive the exemption for courses being undertaken by 1,200 employees.

The government announced last week that exemptions will be limited to all apprenticeships and to traineeships undertaken by new employees earning less than $100,000 per annum.

In an email to all employees Mr Coughlan said the contractor could no longer use the exemption for employees undertaking certificates in a metalliferous mining course.

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Comments

South Perth
I agree with Byrnecut's view 100 per cent. This change was without warning, draconian in approach and immediate in effect (announced/proclaimed on November 30 effective from December 1). An audit with a view to developing more focused criteria would have been sensible to retain the purpose of the exemption. This belies the Labor mantra of being the party of education and consultation.

Mt Richon
I have always struggled with the concept that an employer should be taxed for providing jobs and prosperity to the state. But this payroll tax decision can be described as nothing more than a corporate tax grab to pay for the $5 billion in unfunded promises at the last election. The government needs to understand that penalising those who generate the economic wealth for WA only leads to fewer jobs, less wealth, less tax revenue - in short, a self-fulfilling prophesy of economic diminishment.

What I find disappointing is that the government is attacking the aspect of the training sector where it provides no capital input. The incentive was designed to encourage companies to use their facilities and resources to train employees in national qualifications. The result will be these companies will still do training but the employees won't get national qualifications, only internal recognition. National statistics show 25 per cent of VET training in WA is undertaken by public providers (i.e. Tafe) yet they receive 80 per cent of the funding. Now, this is where real savings can be made.

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Mining contracting employees

1st↑DownerNFP
2nd↑Byrnecut1,250
3rd↑Barminco1,233
4th↓MACANFP
5th↑BGC Contracting792
22 mining contractors ranked by no. of mining contracting staff: in WA

WA revenue

3rd↑Competitive Foods Australia$1.23bn
4th-ABN Group$1.02bn
5th↑Byrnecut$979.0m
6th-Wilson Parking$1.14bn
7th↑Bis$587.9m
104 private companies - large ranked by revenue most recent financial year

Number of Employees

Private Companies - Large

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