Hospitality industry in WA calls for payroll tax relief
The hospitality industry in Western Australia is calling on the McGowan Government to prioritise reducing the payroll tax burden before next year’s Budget.
Hoteliers and restaurateurs want an overhaul on the “tax on jobs”, saying it needs to be cheaper for local businesses to employ extra staff quickly.
Companies in WA are subject to payroll tax when their total taxable wages exceed an annual threshold of $850,000, which is one of the lowest thresholds in the country. Other states and territories have either already increased or pledged to lift their payroll tax thresholds to boost businesses.
The Australian Hotels Association WA is lobbying the Government to make it cheaper for hospitality businesses to hire extra staff.
“We need to take a serious look at any tax that acts as a handbrake on job creation and WA’s payroll tax has long been identified as an area that is ripe for reform,” AHA (WA) chief executive Bradley Woods told The West Australian.
“With the second-lowest payroll threshold in the country, WA has a system in place that acts as a disincentive for small businesses in particular to hire extra workers and expand their operations,” he said.
“The AHA believes the time is right for both sides of politics to give consideration to reforming this tax by lifting the current threshold.”
But Premier Mark McGowan is holding form for the time being.
“It would be desirable to affordably lift the threshold so fewer smaller businesses were caught but that’s something we have to consider in the budget context to make sure it’s affordable and we don’t blow out debt,” McGowan said.
“We are the only State government in Australia that is driving debt down."
Sheridan Randall, 27th June 2019
