The South Australian Business Chamber has called for the state government to work with them on tackling payroll tax ahead of the state budget.
In a formal recommendation submitted to Treasurer Stephen Mullighan MP earlier this month, the South Australian Business Chamber, which represents all industry sectors across the state, put forward six suggestions to make the levy work better for our state and business.
Andrew Kay, Chief Executive Officer of the South Australian Business Chamber stated that payroll tax is a tax on employment and an impediment to growth.
“Our surveys repeatedly demonstrate it is the most constraining state-based tax, and high wage growth in recent years has created a bracket creep scenario that has seen many businesses paying this tax for the first time,” he said.
“Despite our dislike of the tax, we recognise that no state government will walk away from this revenue grab, so we have presented a suite of recommendations to address some of the problems that this tax has created, while considering broader issues such as the jobs and skills shortage,” Mr Kay added.
The Chamber recommends:
“When the reward for creating jobs, saving a struggling business or adding to the complexity of the state’s economy is a large tax bill, the problems with this tax are clear,” Mr Kay added.
These are among a suite of recommendations made to the state government ahead of the 2024 – 2025 budget, designed to address economic complexity, productivity, and business growth in our state.
The South Australian Business Chamber’s full state budget submission is expected to be released in the coming weeks.
Download supplied interview footage with Andrew Kay here.
Journalist notes: