Payroll tax will halt progress
Independent Member for Shepparton District Suzanna Sheed has called on the Victorian state government to look to increasing the payroll tax threshold with a view to eventually removing the regressive tax.
She made the statement as part of her budget response speech in Parliament this week.
“I note the Government is increasing the payroll tax threshold from $550,000 to $650,000 over four years.
This is barely keeping pace with inflation, and I have to say, as the former partner in a small business, this tax is very regressive, and mitigates against employment creation,” Ms Sheed said.
“The threshold is easily reached when the major input for practically all small businesses is the wage cost.
Ten staff on an average wage will easily see the threshold reached,” she said.
Ms Sheed has asked the Andrews Labor Government to consider using the significant revenue stream from stamp duty on property sales, to begin offsetting the tax.
“The higher the threshold, the more business we will attract to the state, and the more the expansion of existing small business will occur,” Ms Sheed said.
Sueanne McCumstie 0428 743 880 │ email@example.com