Business SA consistently advocates on tax reform, particularly payroll tax, to ensure business is incentivised to grow and create jobs, while ensuring that Australia attracts foreign investment to enable opportunities for small businesses here to grow.
We are currently active in the Federal debate on reducing company tax and ensuring a consistent threshold for small business tax concessions. We are a staunch advocate for reducing the company tax rate to 25%, but are concerned that the current 10 year plan will leave Australia even further behind other developed economies, particularly the likes of the UK which now has a broad rate of 20%, after starting the GFC at 30%. We are also concerned that by introducing a threshold rate into our corporate tax system for say, businesses with $50 million turnover, we are both reducing incentives for businesses to grow and limiting our capacity to attract foreign capital, particularly from multi-nationals.
Business SA has also been active in reducing the payroll tax burden in South Australia and successfully argued for a four-year extension of the 50% payroll tax rebate for businesses up to $1 million in wages (reducing to $1.2 million) in the 2016/17 State Budget. We are continuing to look at all options to improve the competitiveness of South Australia’s payroll tax arrangements, particularly in the light of increasing competition from interstate.
For further information please contact: Andrew Mckenna on (08) 8300 0000.