Payroll tax support to continue

The state government is introducing new laws to extend its payroll tax support for Western Australian businesses.

The current laws were introduced in April, as part of a $1 billion relief package that applied to WA businesses impacted by COVID-19.

It gave about 10,700 small businesses a four-month payroll tax waiver, as well as tax exemptions for payments made under the federal government’s JobKeeper scheme.

The state government will today introduce new legislation to continue its payroll tax support for WA businesses, ahead of next year’s election in March.

“It is vital that this Bill is passed so additional payroll tax support can be provided to WA small businesses, if it is needed,” Finance Minister Ben Wyatt said.

“If this is delayed until after the election it may well result in businesses missing out on the cash flow benefits that future payroll tax relief could bring.”

Mr Wyatt urged all members of Parliament to support the new laws.

Among the payroll tax relief was the recent threshold increase to $1 million, which the Chamber of Commerce and Industry of WA said was one of the state government's most significant initiatives.

"WA can build on this progress by continuing to reduce reliance on this tax on jobs," CCIWA chief executive Chris Rodwell said.

"The Reserve Bank Governor Philip Lowe recognised that structural reforms to drive economic growth 'need to remain on our national agenda'. 

"This should include tax reform that seeks to remove the burden of payroll tax and move to broad-based taxes.

"Driving greater investment and cultivating conditions that are more conducive to economic growth will ultimately mean fewer businesses need temporary emergency relief.

"This is also essential to reduce our fiscal burden."