Victorian payroll tax cut shows NSW still has further to go

4 May 2010

NSW’s largest business organisation, NSW Business Chamber, said that the Victorian Government’s decision to cut payroll tax in their budget today was further reason for the NSW Government to continue their campaign to cut payroll tax beyond 2011.

The Victorian Government has announced it will cut its payroll tax rate from 4.95% to 4.9% from 1 July.  NSW’s current payroll tax rate is 5.65% with a further cut to 5.5% on 1 January 2011.

“We have warmly welcomed the NSW Government’s campaign to cut payroll tax from 6% to 5.5% by 1 January 2011, but today’s Victorian Budget shows that other states are not standing still when it comes to creating a competitive business environment,” said Stephen Cartwright, CEO of NSW Business Chamber.

“The $1.9 billion cuts to payroll tax will be fully implemented on 1 January 2011 and the NSW Government in the Budget needs to set further direction after this period.”

Mr Cartwright said NSW Business Chamber outlined a strategy to cut NSW’s payroll tax rate to 5% in the 10 Big Ideas to Grow NSW (www.10bigideas.com.au) to help NSW be more competitive and the number one destination in Australia to do business.

“We cannot stop on 1 January 2011 with the last scheduled cut to payroll tax and pat ourselves on the back, we need to keep going and the State Budget in June is the perfect opportunity for the NSW Government to continue its campaign to cut payroll tax.

“Payroll tax is a tax on jobs and that has been acknowledged by the NSW Opposition through their proposal to rebate payroll tax on the first 100,000 jobs created.  This is a good step in the right direction but cuts to the rate of payroll tax would be even better.

“We will be encouraging both political parties to outline their plans to make sure that NSW businesses remain competitive with the other Australian States.”