NSW Continues to Have Highest Payroll Tax Burden, Despite Token Cut
Monday, 07 June 2010
Despite the Keneally Labor Government’s payroll tax announcement today, NSW will still carry the highest payroll tax burden of any State, Shadow Treasurer Mike Baird said today.
“In a Budget desperate for vision, pursuing token cuts that do nothing more than tread water is not going to fix the problems in NSW,” Mr Baird said.
“Even after the cut comes into effect on 1 January next year, methodology used by the Institute of Public Affairs** shows NSW businesses will still pay the highest payroll tax of any State.
“Medium sized Victorian businesses will pay significantly less than equivalent businesses in NSW.
“Today’s announcement simply matches Victoria’s recent cut so our lack of competition with our key competitor will remain entrenched.
“After 15 years of Labor in NSW it is clear there is a strong correlation between economic growth – or lack thereof – unemployment and our tax competitiveness.
“Unfortunately today’s announcement by the Keneally Labor Government provides no hope for the future and very little stimulus for new jobs.
“Families across NSW will continue to suffer poor job prospects under a Keneally Labor Government that favours spin over substance.
“The NSW Liberals & Nationals’ Jobs Action Plan is unashamedly targeted at bringing new jobs to this State.
“Our commitment to make the first 100,000 jobs payroll tax free sends a clear message that NSW is open for business.
“NSW needs an immediate jump-start to the economy – we cannot afford to continue to tread water.
“Today’s token cut by the Keneally Labor Government is more about a mirage of action than any meaningful reform,” Mr Baird said.
Payroll tax comparison*
Rate
Threshold
Tax Paid
NSW current rate
5.650%
$638,000
$171,849
NSW rate as at 1 Jan 2011
5.450%
$658,000
$164,676
Tasmania
6.100%
$1,010,000
$162,844
WA
5.500%
$750,000
$161,127
Queensland
4.750%
$1,000,000
$159,100
Victoria
4.900%
$550,000
$153,349
SA
4.950%
$600,000
$152,439
* Based on a medium-sized 60 employee business as per the Institute of Public Affairs methodology
MEDIA: Lisa Harrington - 0406 726 880
** Institute of Public Affairs’ comparison of payroll tax is based on a medium-sized 60 employee business
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