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small business

Payroll Tax Cuts to Help Business and Create Jobs

15 February 2017

Western Australian businesses will save more than $55 million over the next three years under a re-elected Liberal Government commitment to cut payroll tax.

  • More than 11,000 business to get payroll tax cuts

Premier Colin Barnett said a Liberal Government would raise the payroll tax threshold from the current $850,000 to $900,000 from 1 January 2018.

“This will see more than 400 employers become exempt from payroll tax altogether and more than 11,000 businesses would have their payroll tax liability reduced,” Mr Barnett said.

“A Liberal Government will not introduce any new taxes or raise existing taxes. What we will do is provide a tax cut for the business community. This will create jobs and enable small business in this State to employ more people.

“We are committed to creating jobs and implementing policies which will expand the State’s economy,” the Premier said.

Treasurer Mike Nahan said since 2008 the Liberal-led Government had put in place a number of measures to support small business.

In the 2012-13 State Budget a $135 million payroll tax rebate package helped to reduce the tax burden on small businesses and advance employment opportunities for people with a disability and Aboriginal people.

In 2014-15 the payroll tax threshold was increased from $750,000 to $800,000 and in 2016-17 it was increased to $850,000.

“These two previous payroll tax threshold increases saw more than 16,000 WA businesses save $121 million,” Dr Nahan said.

Small Business and Finance Minister Sean L’Estrange said since 2008 the Liberal-led Government had worked hard to help small business by introducing real and significant reforms, including late-night and Sunday trading.

““The success of small business is crucial to the economic and social well-being of all West Australians. While the resources sector might be the engine of the economy, small business is its heart and soul, creating job opportunities for people in their local communities,” Mr L’Estrange said.

“This policy highlights that there is a large point of difference between the support for the business community between the Liberal Party and the Labor party.”

The Premier also announced a Liberal Government would raise the current land tax exemption threshold from $300,001 to $360,000 from 1 July 2018.

This was expected to benefit more than 20,000 land tax payers, saving them up to $7 million a year.

“Financial constraints limit the changes we can make right now but our intention is to make the land tax system fairer and more equitable. This change is a small first step that demonstrates our commitment to easing the tax burden on West Australians,” Mr Barnett said.

Fact File
In 2009-10 the Liberals brought in a $140 million package that included:

  • workers’ compensation premium rebates for first year apprentices and trainees to boost apprenticeship and trainee numbers; 
  • a business resilience package; 
  • and a $100 million payroll tax rebate which focused on small and medium enterprises