Payroll Tax Relief

The Hon. C. BONAROS (17:48): I move:

That this council—

1. Expresses its disapproval of the absence of any genuine and meaningful payroll tax relief measures within the 2024-25 state budget.

2. Recognises South Australian businesses continue to call for payroll tax reform, including:

(a) an increase in the $1.5 million threshold;

(b) a recalibration of payroll tax rates;

(c) incentives to stimulate regional employment and investment;

(d) sector-specific incentives to fill critical gaps; and

(e) the return of incentives for the hiring of apprentices and trainees.

3. Notes the current $1.5 million payroll tax threshold has remained stagnant for five years despite escalating wage and superannuation costs.

4. Recognises the current payroll tax system disincentivises businesses from employing additional staff, including in the critical allied health sector.

5. Recognises the impact of recent payroll tax decisions on the allied health sector will ultimately lead to increased pressure on emergency departments, thereby exacerbating wait times and ambulance ramping.

6. Calls on the Malinauskas Labor government to provide meaningful payroll tax relief to South Australian businesses.

I rise once again in this place to talk about payroll tax. This motion calls on the Malinauskas government to provide meaningful payroll tax relief to South Australian businesses. In the 2024-25 State Budget Overview, the relief for businesses page barely filled a page, and that includes a photo of a seemingly cheerful barista taking up practically half the space.

The only mention of payroll tax was the previously announced bulk-billed exemption for general practitioners, which is hardly a comprehensive plan for supporting our businesses and, frankly, one that has divided general practitioners themselves. It is increasingly evident that the government does not prioritise business.

Let us look at where its focus has shone through. We saw lots about golf and car races and all things sport. We saw things about preschool for kids—fantastic. We saw things about building bigger presence—fantastic. We did not see so much about rehabilitation services for the people who are going to prison—not so fantastic. Creating jobs? Nothing. Supporting business? Nothing. Stimulating regional investment? Nothing. Reducing pressure on emergency departments? Nothing.

This government has failed to recognise the struggles many businesses face, or perhaps they are simply unwilling to relinquish some of the almost $5 million a day—that is what we are talking about here: $5 million a day—they collect in payroll taxes, the penalty businesses pay just for employing people, regardless of whether they are making a profit, regardless of whether they are breaking even, regardless of whether they are operating at a loss. The one thing they will be guaranteed is that they will pay their payroll tax bill.

Businesses with payrolls exceeding $1.5 million are burdened with what the Premier has so aptly termed 'a tax on jobs'. The South Australian Business Chamber has described the latest budget as safe and criticised it for not addressing the needs of South Australian businesses, many of which are subject to payroll tax. The South Australian Business Chamber has suggested raising the $1.5 million threshold to $2.1 million and implementing a payroll tax scale.

There have been repeated calls for a 50 per cent discount for businesses operating in regional South Australia, particularly near the border where businesses face the choice of relocating for a lower rate. I will say I was really genuinely hopeful that that was one of the measures that this government would actually seriously contemplate this time around, given the success that it has had in Victoria and the precedent that has been set there. But, again, nothing from this government.

The government has chosen to overlook the various tools at its disposal to stimulate business growth, investment and employment in regions and sectors that need it the most. The allied health sector is a prime example, given the ongoing issues of ambulance ramping. We have heard in the press from former SA President of the AMA Dr Chris Moy, who suggested, as a result of the payroll tax issues, we might need to build bigger, longer ramps. That is the impact that this is having on our health crisis.

The opposition introduced the 50 per cent exemption for apprentice and trainee wages while in government, a scheme the Malinauskas government has not extended. I am confident that my colleagues opposite will speak to the success of this initiative, and I commend them for doing that at that time and the measures that they did implement in their time in government. The South Australian Business Chamber has also proposed targeted discounts to boost employment for the long-term unemployed and individuals' existing corrections as well as a relaxation of small business grouping rules in the first year of operations.

Each proposal holds merit but has been met with deafening silence from this payroll tax dependent government. They have become addicted to the $5 million a day they are getting for absolutely nothing. It is money for jam for the government, that is what it is. It has become an absolute cash cow. As we approach the end of the financial year, remember that many businesses are now scrutinising their payroll tax summaries to stay under the $1.5 million threshold or the $1.7 million mark, which triggers the maximum 4.95 per cent rate that applies to payroll tax.

So how are some of them trying to do this? Let me tell you: by cutting the shifts of casual workers for a start and by reducing the hours that people are working. So we are not doing anything to create more hours or to create more work, we are actually reducing shifts of individuals. Businesses are doing this. The restaurant trade is known for doing this. We reduce hours so we can just stay under that threshold and get us over the line until the next financial year.

Next year will bring even more challenges for businesses with the minimum wage and superannuation set to rise in a few weeks, and we know super is slated to increase again to a minimum of 12 per cent on 1 July next year. Let us not forget that the $450 monthly minimum wage threshold was scrapped on 1 July 2022, further adding to superannuation totals.

I am certainly not arguing against wages or superannuation increases—that is something we all support—but we cannot have a government that is not combating the creep effect that those issues are having and instead see businesses shut their doors. Mark my words, we have seen, every so often in the newspaper, headline after headline: hospitality venues closing their doors.

There is no doubt—zero, absolutely none—that payroll tax, when it comes to general practitioners, is going to have a crippling impact on our already crippled health system, on our health crisis. There is no doubt that the groupings the government is insisting on for everybody other than those who have a concession—bearing in mind that many of them are not happy either—is going to have a further compounding impact on businesses in this state, particularly on that allied health sector when it comes to groupings.

There is no doubt that this government has ignored every shred of advice given to them from every business sector in this state to say that unless you do something with payroll tax we are facing yet another crisis in this state. Let me remind the council again: the warning from the former AMA president is, 'You'd better build a longer ramp,' because that is where this is going to lead when it comes to the health sector.

I will be bringing this motion to a vote at the next opportunity, and look forward to hearing other addresses about the inflexible money-grabbing policy by this government—$1.7 billion projected to increase to $1.97 billion a year, $5 million a day, money that they cannot wean themselves off for the benefit of businesses in this state.

Debate adjourned on motion of Hon. D.G.E. Hood.