Payroll Tax (Exemption for Small Business) Amendment Bill
The Hon. J.A. DARLEY (15:34): I rise in support of this bill. The bill will increase the payroll tax threshold from $600,000 to $1.5 million, with businesses with wages between $1.5 million and $1.7 million benefiting from a reduced rate. It is expected that payroll tax receipts will reduce by approximately $44.5 million to the benefit of approximately 3,600 businesses.
Payroll tax was a platform Advance SA ran with at the last election, as we believed it was a disincentive for South Australian businesses to grow. I have spoken to small businesses in South Australia who expressed their frustration over payroll tax and how they perceived it as a handbrake on expanding their businesses. They saw no point in increasing the size of their business as the increase in payroll taxes would have negated any benefit that was derived from the expansion. I am very happy to support this bill and commend the government for taking this step to reduce payroll tax for South Australian businesses.