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Business tax relief for South Australia

Business tax relief for South Australia

CANBERRA: A bipartisan approach to cutting payroll tax in South Australia will make small businesses more competitive, Business SA says.

Opposition Leader Peter Malinauskas has indicated Labor is willing to work with the Liberal government to eliminate payroll tax for companies with a wages bill of up to $1.5 million.

“Lifting the payroll tax threshold is essential if we want to see South Australian businesses prosper and our state grow,” Business SA spokesman Anthony Penney said on Thursday.

“Increasing the threshold to $1.5 million would see South Australia no longer have the nation’s lowest rate at which it is introduced, which has meant the state has not been able to compete on a level playing field when trying to attract new business.”

However, Mr Penney said there was a need to see the details of the new policy being proposed to ensure all businesses would benefit and there would be no disincentives for businesses operating near the threshold to employ additional staff.

The tax cut was proposed by the Liberals ahead of the March state election as a major boost to jobs.

Labor went to the poll supporting the existing threshold of $600,000 but Mr Malinauskas said the party would now back the change.