The NSW Nationals recently made removing payroll tax for regional businesses a part of their policy platform, a move Tamworth MP Kevin Anderson and Northern Tablelands MP Adam Marshall both applauded.

Tamworth MP Anderson he'd been a long-time champion of zonal payroll tax.

"The further you get away from metro areas like Sydney, Wollongong, Newcastle, then the less payroll tax you should have to pay," he said.

"That way it provides an incentive for businesses if they relocate lock, stock and barrel.

"But it also gives large organisations the opportunities to move segments of their business to regional NSW, saving them money off their payroll tax bill, and helping us by creating jobs."

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Mr Marshall said payroll tax was "without a doubt the very worst tax".

"It's a tax on business and jobs - it's literally punishment for growing, expanding and offering more employment," Mr Marshall said.

Mr Marshall said that, given payroll tax was a big money generator for the NSW government, removing it was a "catch-22".

"If the government removes that tax or part of it, how does the financial hole get filled? I think the commonwealth government has a role to play there," Mr Marshall said.

"If all the state governments came together and said, 'We'll get rid of this awful tax if you increase GST', that extra money can fill the gap."

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Shooters, Fishers and Farmers Tamworth spokesman Jeff Bacon wrote the party's policy on zonal taxation.

"In particular, I focused on payroll tax," Mr Bacon said.

"This policy would see regional NSW businesses exempted and new businesses wishing to relocate into the regions also exempt.

"Payroll tax is an unpopular state tax that is punishment for having a successful business that employs many staff."

It was "humbling" to see parts of the policy he penned adopted by the Nationals, Mr Bacon said, tongue in cheek.

"But they should have gone further and adopted the entire position," he said.

"Our policy did go further and include state stamp duty exemptions for commercial property and vehicle purchases.

"Regional NSW has been in decline for many years, and will continue without such measures being introduced. There can be no delay in the implementation of permanent regional payroll tax exemptions."