Businesses in Western Australia with payroll bills below $1.6 million will be able to claim a special payroll tax rebate for the 2009-10 year, with about half of all businesses in the state likely to benefit.
Businesses with payroll bills between $1.6 million and $3.2 million will receive a portion of the rebate. The maximum rebate payment available is $46,750. About 6700 SMEs are estimated to apply for a refund.
The $100 million initiative was announced in the state’s budget yesterday, with Treasurer Troy Buswell also announcing measures for businesses to be exempt from payroll tax on parental leave.
The payroll rebate is part of the State Government’s “jobs protection package” that will cost $155 million, including $10.6 million to refund compensation payments for first-year apprentices and trainees.
Buswell’s budget also contained $8.3 billion in spending for infrastructure. The state’s economic growth is expected to fall from 8% in 2008-09 to -1.25% in 2009-10, with net debt forecast to be at $7 billion. Next year’s surplus is tipped to be just $23 million.
James Pearson, chief executive of the WA Chamber of Commerce and Industry, told The Australian Financial Review that payroll tax was an unnecessary burden on jobs.
“The decision to provide payroll tax relief in this year’s budget will ease the financial burden on thousands of small businesses during these challenging economic times,” he said.
“However, CCI will continue to advocate for permanent cuts to payroll tax to remove a major barrier to job creation.”
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Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
