Thousands of South Australian small businesses are being forced to pay payroll tax while similar businesses in all other states are payroll tax-free, according to Shadow Treasurer Rob Lucas.
“The payroll threshold in South Australia below which small businesses pay no payroll tax is the lowest of all states and territories in Australia,” Mr Lucas said today.
State Payroll Tax Threshold (2005-06)
“This table shows that even if the Rann Government announces an increase in the threshold in tomorrow’s budget it is unlikely to be anywhere near the average of the threshold in all other states and territories.
“The Rann Government has not increased the threshold at all in its three budgets since 2002 even though it did make a small cut in the tax rate in 2004. This inaction contrasts with the action of the former Liberal Government in its last budget of 2001 when it announced cuts in the rate from 6.00% to 5.67% and an increase in the threshold by more than 10% to $504,000.
“Whilst any changes in the threshold in this year’s budget would be welcomed, small businesses will be very cynical that Premier Rann has ignored their concerns for so long and at the last budget before an election finally takes action.
“Small businesses in South Australia have rightly complained for three years that they could have employed thousands more South Australians if the Rann Government had listened to their concerns earlier.”