BUSINESSES across the state have given the NSW government a glowing mid-term report card, but want to see it do something about payroll tax, which is hindering the expansion of small businesses.
The NSW Business Chamber gave the government an overall score of eight out of 10, pointing to its strong budget management, reduction of red tape and delivery of more infrastructure.
Ask any [Glen Innes] business how they’re going, they’re going to tell you with a big smile that things are going quite well.Northern Tablelands MP, Adam Marshall
Tamworth MP Kevin Anderson said it was the government’s job to create an environment for businesses to thrive in.
He said when the government gave local businesses a helping hand, it had a huge flow on effect for the local economy.
“Take two of the major employers in Tamworth, the two abattoirs,” Mr Anderson said.
“We’ve given them significant funding, in the millions, to upgrade their facilities, which increases their production and increases the opportunities for local employment.”
Northern Tablelands MP Adam Marshall said the renewable energy boom was pumping millions into local businesses.
“If you walk down the street in Glen Innes and ask any business how they’re going, they’re going to tell you with a big smile that things are going quite well,” Mr Marshall said.
Both parliamentarians said payroll tax was a frequent thorn in the side of local businesses, particularly small ones looking to expand.
At the moment, any business that pays more that $750,000 a year in wages is slapped with a 5.45 per cent tax.
“It’s an incentive to grow – some businesses are splitting their operation, with half in Queensland so they avoid hitting that threshold,” Mr Marshall said.
The government is already looking at the issue through a parliamentary inquiry into zonal tax, which Mr Anderson is chairing, that could see regional areas receive exemptions or concessions on payroll tax.