CME joins call for payroll tax cut for small and medium-sized businesses in regional WA

The resources industry’s peak body for WA has joined calls for a cut in payroll tax for small and medium-sized businesses in regional communities.

Chamber of Minerals and Energy WA chief executive Rebecca Tomkinson said payroll tax was having a significant impact on these businesses in regional WA that supported mining communities and contributed to the vibrancy and liveability of towns.

“It’s also a burden on the many smaller businesses along the mining supply chain, including manufacturers and service providers, as well as junior miners who are yet to make a profit but are still hit with payroll tax,” she said.

Ms Tomkinson said providing payroll tax relief to small and medium-sized businesses would have flow-on effects across the State’s economy.

“If smaller businesses are doing well, that’s good for every business in the State,” she said.

“It increases confidence in our economy, helps to attract investment and keeps more jobs in WA.”

WA businesses have the highest payroll tax burden in the country, with a recent Chamber of Commerce and Industry WA survey of more than 800 businesses identifying payroll tax as the number one issue they would like to see addressed at the March State election.

CCIWA chief executive Chris Rodwell said a 13 per cent increase in wages since 2020 had pushed more small businesses into the payroll tax liability threshold.

“When you consider the rising costs of everything from wages to insurance, utilities, rent, materials, to then be slugged with the nation’s highest payroll tax is really rubbing salt in the wound for small and family businesses,” he said.

“We know than some businesses choose to deliberately stay small to avoid having to pay this tax, which punishes job creation and success.”

CME joins CCIWA, Australian Hotels Association WA, Association of Mining and Exploration Companies, Australian Medical Association WA, Tourism Council WA, Housing Industry Association WA, National Retailers Association and Franchising Council of Australia, in calling for reform to WA’s “uncompetitive” payroll tax system.