Western Australian businesses have identified payroll tax relief as a top priority for the upcoming election, a Chamber of Commerce and Industry WA survey shows.
Western Australian businesses have identified payroll tax relief as a top priority for the upcoming election, a Chamber of Commerce and Industry WA survey shows.
CCIWA today released its latest Business Confidence Survey, with 59 per cent of the 567 businesses surveyed calling for the state government to commit to payroll tax relief.
In its survey results, CCIWA found the growing calls for relief came after insolvency rates in WA surged towards pre-pandemic levels and an increasing number of businesses reported a decline in their profit margins
CCIWA chief economist Aaron Morey said payroll tax relief was one of the ways to ease pressure with many small and medium sized businesses in the state feeling in distress.
“WA really has a two-speed economy as we head into 2025” he said.
“Overall, it’s in good shape because of the strength of larger businesses, particularly those in mining and construction.
“But it’s a vastly different story for many small and family businesses who have been battered by rising costs over the past two years.
“In many cases, these businesses are also being hit with the highest payroll tax in the nation.”
Mr Morey said a growing number of small and medium sized businesses were close to the $1 million threshold for payroll tax because of wage increases.
“Aside from those unfortunate businesses that have found themselves hit with payroll tax because their wages costs have pushed them into the liability bracket, there’s a large number who are sitting just below the liability threshold,” he said.
“Those businesses have told us they’re deeply concerned about having to pay this regressive tax, so they’re staying small – not expanding their services, hiring new staff or chasing new innovation.”
WA businesses named stamp duty as the second most important priority ahead of the March election, the CCIWA survey revealed.
