PAYROLL tax relief will be delivered to up to 12,000 WA businesses in a bid to stimulate the State’s economy and support new jobs.
As part of the $170 million payroll tax package from the State government, the payroll tax exemption threshold will be increased by $150,000 over the next two years.
WA businesses with Australia-wide payrolls of up to $850,000 are currently exempt from payroll tax.
The annual threshold will be increased to $950,000 from January 1 next year and again to $1 million from January 1, 2021.
Raising the payroll tax threshold is predicted to result in about 1000 businesses in WA no longer being liable for any payroll tax, while also cutting payroll tax liability for an additional 11,000 businesses.
Reducing the payroll tax burden on WA small and medium businesses aims to lower the costs associated with the hiring of additional staff, and provide an opportunity for those businesses to reinvest.
Premier Mark McGowan said the package would deliver real incentives for thousands of local businesses to hire additional staff in a latest of series of measures to stimulate WA’s economy.
“We’ve listened to requests from WA businesses to help reduce costs and because of our responsible budget management we can now deliver this payroll tax reform package,” he said.
“By getting the finances under control, we can continue to deliver for Western Australians and get things done.”
Treasurer Ben Wyatt said about 70 per cent of all payroll tax paying employers in WA would receive a reduction in their payroll tax bill with the reforms.
“Once these reforms are fully implemented, some businesses in WA stand to be around $9300 better off per annum than under the current thresholds,” he said.
“Together with the Employer Incentive Scheme that was introduced in July, these reforms will offer significant support to small businesses taking on additional staff in Western Australia.”
Small Business Minister Paul Papalia said more than 491,000 Western Australians were employed by small businesses, contributing in excess of $48 billion to the State’s economy.
“Raising the payroll tax threshold will reduce the financial barrier for small businesses considering expansion of their operations and employing more staff, which will help grow jobs and further boost the economy,” he said.