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A 15% payroll tax cut to help protect NSW jobs, support local businesses and boost the State’s economy in the face of global financial conditions is being proposed by the NSW Liberal/Nationals today.
“NSW businesses, their employees and their families need help in these challenging economic times,” NSW Opposition Leader Barry O’Farrell said.
“A 15% cut in payroll tax for 2009 is a practical way for State Government to help families and businesses,” Mr O’Farrell said.
“This initiative would help keep people in jobs by easing the financial pressures faced by some 30,000 NSW businesses.
“It would be a positive and responsible response to the economic conditions confronting the State.
“As I argued last week, cutting taxes is one way to make NSW more attractive for investment and help ease the pressures faced by existing businesses.
“A one-off, 15% across-the-board cut would reduce NSW’s effective payroll tax rate to 4.89% making it one of the lowest in the nation.”
Mr O’Farrell said the measure cut would keep almost $1 billion in the NSW business sector, the equivalent of almost 16,500 jobs.
“This measure would help protect jobs and the families that rely on them,” he said.
“Having a job will be critical to the financial well-being of families during these challenging times and it’s time NSW Labor did more than talk about ‘working families’.
“Instead of standing on the sidelines watching as families and businesses do it tough, it’s time Mr Rees offered some help.
“I urge the State Labor Government to adopt my responsible pro-jobs measure as one way to support families and business through these tough times.”
Shadow Treasurer Mike Baird said forecasts that up to 10,000 jobs could be lost this year in NSW required a change of attitude from the State Labor Government.
“At a time when governments all around the world are seeking to address the economic crisis with stimulus packages, Nathan Rees and NSW Labor did the opposite in the mini-Budget,” Mr Baird said.
“At 5.2%, the NSW unemployment rate is already the second highest in the country and higher than the national average of 4.4%.
“The State’s businesses already face the highest taxes in the country, with a typical NSW business facing payroll tax bills 13% higher than the national average.
“Nathan Rees and Eric Roonzendaal have tried to wash their hands of this problem, but the NSW Liberal/Nationals say today the State Government has a role to play in helping us through this crisis.
“A willingness by the State Government to make a high-profile billion-dollar investment in NSW business could also have a positive effect for NSW business’ overall outlook and confidence.
“These and other stimulus measures should be undertaken in close consultation with the rating agencies. It is our belief that the one-off nature of the tax cut would not effect the State’s Triple A credit rating,” Mr Baird said.
Budget Impact
|
2008/09 |
2009/2010 |
2010/2011 |
2011/2012 | |
Budget Position |
-917 |
138 |
573 |
900 | |
Payroll Initiative |
-471 |
-490 |
0 |
0 | |
Revised Budget Position |
-1388 |
-352 |
573 |
90 |
MEDIA: Lisa Harrington - 0406 726 880
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