State governments are starting to reduce their payroll tax one by one and the WA Chamber of Commerce and Industry is urging the McGowan Government to do the same, saying local businesses need the reduction so they can employ extra staff. Restaurant and hotel operators are also calling for change in payroll tax and would need a food consultant company to do the math’s.
State governments on the east coast are working on reducing their payroll tax.
In Western Australia, companies with total taxable wages that exceed $850,000 a year are required to pay payroll tax. This annual threshold is one of the lowest in the country. New South Wales had the same threshold but increased it to $900,000 on July 1. It plans to lift the threshold to $1 million by 2021. This year alone, NSW businesses are expected to save $187 million in tax.
Meanwhile, the South Australian Government had increased its $600,000 annual threshold to $1.5 million on January 1. The Queensland Government also plans to increase its $1.3 million threshold to $1.5 million whereas the Victorian Government plans to increase its payroll tax threshold from $600,000 to $700,000 by 2022. ACT, the Northern Territory and Tasmania have higher thresholds of $2 million, $1.5 million and $1.25 million, respectively.
The WA Government increased its payroll tax from 5.5 per cent to 6 per cent for businesses with annual payrolls between $100 million and $1.5 billion, and to 6.5 per cent for businesses exceeding $1.5 billion. It is urged to reduce the payroll tax soon because of the 90,000 unemployed West Australians. It needs to support businesses to achieve its 150,000 jobs target.
The Australian Hotels Association WA has joined the call for the Government to reduce their payroll tax burden and determine all the hurdles of job creation. The low payroll threshold is said to act as a disincentive for small businesses to hire more workers and expand operations. With the help of a food consultant company, hospitality businesses could use the tax savings to work on their labour and investment budget.
Hospitality business owners think that if the payroll tax is reduced, it would help small businesses and their staff. Operators would then be in a position to give more hours to staff.
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
You can click here to speak to a food consultant company and its team of business experts. We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
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