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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2016-02-09 Daily Xml
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Payroll Tax

The Hon. D.G.E. HOOD (16:08): I seek leave to make a brief explanation before asking the Minister for Employment questions about payroll tax in South Australia.

Leave granted.

The Hon. D.G.E. HOOD: South Australian businesses have long identified payroll tax as an impediment to business and economic growth in this state. When one compares South Australia's rate of payroll tax to other states, it is not difficult to see why many businesses oppose this ongoing impost. The highest payroll tax threshold in the country is found in the ACT and it is $1.85 million and yet in South Australia the rate at which companies or small businesses actually are required to pay payroll tax is only $600,000. The rate in the ACT is some three times the level in South Australia.

This is a problem that has been reported to me by a number of small businesses which have suggested that a change in the threshold at which the payroll tax level cuts in in South Australia would be a substantial boost to their business. I've even had one constituent inform me that he has decided to maintain the hours worked by employees of his business at a level which therefore keeps his payroll under the $600,000 threshold so that he doesn't have to pay payroll tax. He was quite explicit, and he said that if the threshold was higher he would provide more hours for his employees. My questions to the minister are:

1. Will the government commit to reintroducing payroll tax exemptions for wages paid to apprentices and trainees to bolster the flailing number of apprenticeships in South Australia?

2. Will the government commit to increase the threshold for which payroll tax becomes due, in keeping with other states and territories? As I have said, it is some three times higher in the Australian Capital Territory.

3. In light of the current jobs or unemployment situation in South Australia, will the government commit to extend the small business payroll rebate beyond 2015-16, when it is due to end?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (16:10): I thank the honourable member for his question. Yes, these are matters that fall within the Treasurer's portfolio in terms of state taxation, and I will be happy to take all of those questions on notice and seek a reply from the Treasurer. I do note the Hon. David Ridgway previously interjecting, 'It's not all about Malcolm Turnbull,' and he's right: it's not all about Malcolm Turnbull. It is largely—there is a large part about Malcolm Turnbull.

The only person at the moment talking about payroll tax is Malcolm Turnbull, about suggesting putting it up. I do know that there have been significant tax concessions in last year's budget in terms of particularly non-residential stamp duty that will help businesses, and other stamp duty relief for businesses, and I do note that once these are implemented it will take South Australia to the lowest tax burden jurisdiction in the whole country of any state.

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