Nationals pledge to cut payroll tax

Payroll tax would be reduced for small and medium businesses and the threshold increased to $1.3 million should the Nationals WA form government at the 2025 state election.

Unveiling his party’s first major election commitment on Friday, opposition leader Shane Love revealed the country party would lift the threshold from $1 million to $1.3 million and introduce a 15 per cent rebate for businesses with taxable wages below $4 million.

The rebate would taper off at $7.5 million.

Mr Love said about 11,400 Western Australian businesses would benefit from the reform.

“A business paying three million dollars in wages in WA would be slugged around $126,000 in payroll tax each year,” he said.

“A similar sized business in NSW would pay just $98,000, and businesses in Queensland, Tasmania and the ACT would pay even less.

“Under WA’s payroll tax arrangements, businesses in WA have less capacity to increase employment, invest in the day-to-day running of their business, or expand their operations compared to those in other states.”

The policy would cost the state $292 million per year, according to the Nationals, but would receive more than $850 million per year in economic returns.

Some 3,500 new jobs would be created under the reform, according to modelling by the party.

Payroll tax reform has long been central to advocacy by WA business groups, including the Chamber of Commerce and Industry of WA, which in December commissioned research that found raising the payroll tax threshold to $1.3 million would generate an extra $1.35 billion a year.

WA’s current payroll tax sits at 5.5 per cent for businesses with a wage bill above $1 milion.

The Nationals WA are expected to endorse candidates for the Warren-Blackwood and Geraldton electorates this weekend.

Warren-Blackwood was held by former Nationals WA leader Terry Redman until he lost the seat by about 640 votes to Labor’s Jane Kelsbie in the 2021 election wipeout.

It is likely the Nationals’ best chance of adding to its three lower house seats.

The Geraldton electorate has swung between the Liberals and Labor over the years and was briefly held by the Nationals when former MP Ian Blayney defected from the Liberals in 2019.

Former Geraldton mayor Shane Van Styn is the frontrunner to contest the seat currently held by Labor’s Lara Dalton on a 13 per cent margin.

Shire of Chapman Valley president Kirrilee Warr and Northampton Shire vice president Rob Horstman have also thrown their hats in the ring.

Pilbara and Kalgoorlie have been targets for the Nationals in the past few elections too.

Of intrigue this election will be the extent of the party’s foray into metropolitan seats as the party attempts to sure up votes to hold onto its upper house seats given the existing regional system will be abolished in favour of a single statewide ballot.