SMALL and medium businesses across the region are now considering expansion plans, as the NSW government announces plans to roll back payroll tax.
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The current $750,000 threshold will rise to $850,000 in 2018-19, and then in $50,000 increments until it reaches $1 million.
Tamworth Laser Electrical owner Mike Wilks says with his business sitting right on the $750,000 threshold, the tax was hindering his company’s growth.
“The only reason we haven’t paid it yet is because we get credit on our apprentices,” Mr Wilks said.
“It’s been a real hindrance to growth. Every time there is something we can pursue or an avenue for us to grow in a particular area, we’ve had to say ‘hang on a minute, this will push us over’.
“We have to factor in that extra expense, and it makes it harder to make those good business decisions.”
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Now that the payroll threshold is being rolled back, Mr Wilks said he would consider expanding his business.
“It will definitely play a role in the decisions we make from here,” he said.
The government also announced measures to encourage more apprentices in to the workforce, a move applauded by NSW Business Chamber regional manager Joe Townsend.
“The government is looking to close the gap on the skills shortage in regional NSW through the provision of 100,000 free apprenticeships, and a mandate that new government infrastructure projects must have a workforce of at least 20 per cent apprentices,” he said.
Mr Townsend said across the board, there wasn’t a huge amount of spending on regional infrastructure in the budget – with the $259m received by Northern Tablelands one of the few exceptions. However, he expects that to change as the March state election grows closer.
“I’m hoping for announcements soon given we’re only nine months away,” he said.
“I think they’ll make some of these big projects election items.”