The tax change that will give small businesses a big break
SMALL businesses on the Northern Rivers will be able to employ more workers, thanks to a tax change that will be announced as part of tomorrow's State Budget.
The payroll tax threshold will be increased to $1 million - a move that has been welcomed by the Northern Rivers branch of the NSW Business Chamber.
Regional manager Jane Laverty said the news would have a positive impact on small businesses that were approaching or just over the current $750,000 threshold.
"This is a very positive step and something that the NSW Business Chamber has been campaigning for over a long period,” she said.
"Payroll tax, and the very low threshold in NSW, has discouraged small businesses from hiring additional staff, and worse still it costs many small businesses thousands of dollars each year in administration costs for relatively little additional state revenue.
"Lifting the payroll tax threshold was a central plank of our Keeping NSW Number One campaign which was launched in March, and of our pre-budget submission, which was released in April.
"Payroll tax is a tax on jobs and job creation and serves as a disincentive to employ more people.
"An increase from $750,000 to $850,000 in the first year, and then by $50,000 per year for the next three years means a business with an annual payroll of around $750,000 can hire two extra young job seekers without being slugged by a tax penalty and extra administrative costs.
"Being penalised for creating new jobs is just ridiculous.”