Libs to Cut Payroll Tax

Australian MoneyThe Liberal Party have announced that if they are to win Government, they will raise the payroll tax threshold over the next two years from $600 000 to $700 000.

Under this plan, over 600 small business will no longer have to pay payroll tax, with other business set to save $4 950 per annum on their already hefty tax liabilities.

Ms Redmond said that small businesses were already being “punished” by the Rann Government and their “unfair” tax regime that penalizes business for being successful and wanting to grow and employ more people.

“Why on earth would you penalize a business for expanding and employing more people…small business account for over 96% of businesses in South Australia and employ about 55% of the private sector’s workforce – more than 400 000 people.”

The Liberals believe that the current system of payroll tax makes South Australian businesses uncompetitive and leaves them as the highest taxed in the nation.

Ms Redmond’s initiative involve raising the tax threshold from $600 000 to $650 000 from July 1 2011 and then to $700 000 from 1 July 2012.  The estimated cost to the budget is $31 million per annum once fully implemented.

For those interested in reading the full details of the Liberal’s Small Business policy they can follow this link – more info

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