REDUCING business taxes is the focus of a new push in the hopes of seeing more expansion in towns such as Leeton.
The NSW Business Chamber has put together a pre-budget submission it hopes the state government will pay close attention to, particularly in relation to payroll tax.
With more than 11,000 small and medium enterprises in the Riverina Murray, the chamber believes it is critical for the payroll tax threshold to be increased.
NSW Business Chamber Murray-Riverina regional manager Andrew Cottrill said the organisation had found one of the biggest impediments to business growth is incurring a payroll tax liability once a payroll exceeds $750,000 per annum.
“Once a business in NSW reaches that threshold they are having to pay this tax … it’s hurting businesses in the region,” he said.
“We would like to see something more like what the ACT has – it is $2 million there, or even Queensland, whose threshold is $1.1 million.
“What we know is businesses have told us this payroll tax is preventing them from expanding or doing more with their business.
“Locally we are losing business investment across the Victorian border, due in part to the payroll tax advantages in that state.”
In practice, the current threshold means the typical business employing fewer than 10 employees (at the average full time wage in NSW) must pay a 5.45 per cent premium on the wages of additional employees (or employee hours).
These businesses also incur tax administration costs associated with payroll tax, which the chamber estimates to be over $10,000 for businesses that cross the existing payroll tax threshold.
“This is something we want the state government to really pay attention to and bring NSW in line with other states,” Mr Cottrill said.
“It’s about being competitive.
“We need our local businesses to be thriving.”
The NSW state budget is due to be handed down by the government in June.