The South Australian Business Chamber, South Australia’s Chamber of Commerce and Industry, has voiced its support for a motion presented by SA BEST MLC Connie Bonaros in the state parliament today. The motion seeks to establish a Select Committee to thoroughly examine the impact of payroll tax in South Australia.
Highlighting the significance of payroll tax as a substantial barrier to business growth in the state, the South Australian Business Chamber CEO Andrew Kay emphasised the Chamber’s longstanding advocacy for reforms or the elimination of payroll tax.
“Many of our members have expressed concerns about the burden of payroll tax, making it imperative for us to address the challenges posed by this levy,” said Mr Kay.
A recent survey conducted by the South Australian Business Chamber of South Australian businesses revealed a concerning 7.5% increase in the number of businesses subject to payroll tax in the 2022/2023 financial year, attributed to a rapid rise in wages.
The survey respondents cited the negative impact of payroll tax on hiring and growth prospects.
According to Mr Kay, “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. The levy threshold, the rules around business grouping, and the regional disadvantages are all ripe for review and reform..”
The South Australian Business Chamber urges the establishment of a Select Committee to comprehensively investigate the implications of payroll tax and explore avenues for reform.
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Anthony Caldwell, Manager – Marketing, Media, Communications
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Email – anthony.caldwell@business-sa.com
