Payroll tax impacting local businesses

March 26, 2024 9:23 am in by
Photo: Pixabay

SA’s leading business group are calling for payroll tax reforms, saying they are impacting many regional business operators.

The SA Business Chamber has put forward a plan to the state government, with the tax itself a state based tax calculated on wages employers pay to employees or deemed employees.

Businesses having a payroll under $1.5M are exempt, however the business chamber say due to wage increases more regional operators are now having to pay it.

Article continues after this ad

Andrew Kay, Chief Executive Officer of the South Australian Business Chamber stated that payroll tax is a tax on employment and an impediment to growth.

“Our surveys repeatedly demonstrate it is the most constraining state-based tax, and high wage growth in recent years has created a bracket creep scenario that has seen many businesses paying this tax for the first time,” he said.

One of the recommendations is to see regional operators who pay the tax receive a discount of 50%.