The NSW Payroll Tax Threshold is too low at $900k in 2020, and even when it increases to $1m in 2022.

It is stifling small business, and needs to be overhauled.

A Threshold of $2.5m is a more sensible and reasonable threshold that will encourage small business to hire and retain local staff.

How does the low Threshold stifle small business?

• Businesses getting close to the threshold will hold off on pay rises for staff
• Businesses can look to hire outsourced staff which do not count toward the threshold
• Businesses could choose to hire casual staff or contractors that they can easily disengage from, rather than taking on permanent staff
• It is yet another employment cost for small business that erodes profits for small businesses
• It is yet another administrative burden that small business can ill-afford
• It can lead to unscrupulous business owners setting up other entities and trying to avoid grouping, or employing staff from interstate to try to alleviate the burden

Both the NSW and Federal governments along with the Federal Reserve are trying to encourage wage and employment growth, along with encouraging business to take on permanent rather than casual staff. This is most likely to happen in the private sector, and often in small business.

We need to put real stimulus in place that will assist this to happen, and Payroll Tax, that tax on employing staff, MUST be adjusted to a level that actively encourages small business to have a red-hot go at growing their businesses.

Please sign the petition if you want to encourage small business growth, and please forward onto any and all small and family business owners who feel the way we do.