Legislative Council - Fifty-First Parliament, Second Session (51-2)
2008-02-28 Daily Xml

Contents

PAYROLL TAX

The Hon. S.G. WADE (14:34): I seek leave to make a brief explanation before asking the Minister for Emergency Services a question about payroll tax exemption for emergency services workers.

Leave granted.

The Hon. S.G. WADE: In January the government announced that it intends to exempt employers of emergency service volunteers from payroll tax for the hours that their employees spend attending emergency incidents. The CFS annual report shows that more than half the incidents attended by volunteers occur outside business hours. In addition, many volunteers are self-employed or work for small businesses which do not incur payroll tax. On the opposition's calculations, the initiative will provide a benefit to businesses of less than $6 a year per volunteer on average–that is, $6 a year per volunteer.

A regional employer contacted me recently and told me that he has a standing arrangement with his employees who are CFS volunteers that they will receive full pay for the first four days while they attend emergency incidents. From day five onwards, he and his employees discuss the arrangements. The support of this employer and other similar employers is vital for the effective operation of our emergency services. This employer told me that he had looked at the payroll tax proposal and he thought it was so insignificant that he would not even bother to claim it. My questions are:

1. What is the estimated cost to government of the payroll tax exemption for emergency service volunteers?

2. Does this change merely reflect harmonisation of the payroll tax between the states?

3. When will the government go beyond token gestures and provide significant administrative support to lighten the administrative load on volunteers?

The Hon. CARMEL ZOLLO (Minister for Emergency Services, Minister for Correctional Services, Minister for Road Safety, Minister Assisting the Minister for Multicultural Affairs) (14:35): I thank the honourable member for his question.

The Hon. B.V. Finnigan: Does he think we should be doing it or not?

The Hon. CARMEL ZOLLO: Yes, it is a good question: does he think we should not be doing it? As to the figures quoted by the honourable member, clearly I have no way of checking them out, and he has been known to be fairly fanciful in quoting figures. I would like to think that the opposition welcomed the initiative. It will commence on 1 July and will bring us into line with other states. Several other states have already included it. It is a federal initiative. Because it is coming online on 1 July I do not have the kind of statistics that the honourable member is seeking from me today.

Of course, I am sure that employers will welcome this extra incentive. I recognise that our volunteers could not undertake the tremendous service they undertake to the community of South Australia without the support of their employers, and it is precisely for that reason that a number of initiatives are being rolled out in SAFECOM. A number of strategies have been put in place. One of the aspects will be to recognise the very important work and commitment of the employers to our volunteers and—

The Hon. S.G. Wade: Six dollars an hour.

The Hon. CARMEL ZOLLO: That is interesting—$6. Frankly, I do not accept that as I stand here; I have no way of checking it. Clearly, it would depend on the hours—

The Hon. R.P. Wortley interjecting:

The Hon. CARMEL ZOLLO: They probably do make it up as they go along—

The Hon. R.P. Wortley interjecting:

The Hon. CARMEL ZOLLO: Absolutely. I cannot confirm that at this time. The scheme will come online, as I said, on 1 July. The Treasurer is the lead minister in relation to payroll tax exemption but I thought it important to get it out there and to tell the community that we care, that employers also make a sacrifice and, as the honourable member said, many employers have ad hoc arrangements between their employees and themselves. Again, I commend them.