Following a decade of growth, NSW is once again Australia’s leading economy and the only state economy worth more than half a trillion dollars.
But if we are to stay Number 1, this is not the time to take our economic success for granted or to become complacent. There are still a number of challenges and opportunities yet to be address and we need to tackle these to realise the full potential of our state.
The economic prosperity of NSW relies heavily on the success of small and medium size business. Business which not only provide consumers their services and products to live a lifestyle of their choice, but also employ 3.3 million valued staff (tax and rate payers in the eyes of Government).
Over the next 12 months, it is vital that our political leaders and the broader community fully appreciate the contribution that business makes to our society and how a stronger economy helps build our schools, hospitals and roads, as well as providing training for our young people and delivering important social services.
The business community, through the NSW Business Chamber, have already identified a number of priority areas, none of which need to become election issues if addressed early. These include:
1. A stronger local economy
2. Reductions in payroll tax
3. Affordable and reliable energy
4. More regional infrastructure
5. Red tape reductions
This week business owners across NSW will be mobilised to help boost local employment opportunities ahead of the state budget in May. We will write to our local members, asking for their support to address a major impediment to job creation – payroll tax!
For those unaware of payroll tax, it’s simply a tax on jobs and job creation. Presently your employer on top of paying you, pays an additional 5.45 per cent of your salary, commission, bonus and superannuation to the NSW Government – simply for creating local employment.
Queensland business don’t pay payroll tax till their combined staff salaries are $1.1 million, and even after the business grows to that size (approximately 12 staff) they are only taxed 4.75 per cent. The recently elected South Australian Government have committed to a payroll tax threshold of $1.5 million. Will NSW be left behind?
An increase in the payroll tax threshold for NSW to a minimum $1 million would provide assistance right across NSW. Importantly, this measure would support small and medium sized business in our region that currently have the complex and expensive task of processing payroll tax.
To keep momentum, and retain our states Number 1 spot, we need to maintain the right conditions to encourage business to grow.
The next NSW Government, elected by businesses 3.3 million valued staff, must continue to provide the economic and regulatory leadership to support and encourage the growth of business so that we build an even better NSW for all citizens and create a future for our youth.
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