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Bob Carr wants a second payroll tax on small business.

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Media Release The Hon Joe Hockey MP Minister for Small Business and Tourism

9 September 2003 03/175


Not content with slugging small businesses in New South Wales with one payroll tax, Premier Bob Carr wants to introduce a second one.

It has now been revealed that the NSW Labor Government is looking to introduce a “CBD employer tax” which would be slugged on all small businesses located in the CBD with more than 10 employees.

This would hit small business like Integrated Asset Management, a small business with 10 employees in their George Street office. All of their employees travel from outer suburbs on public transport. Integrated Asset Management are very concerned about the impact of this disastrous proposal on their business.

It beggars belief that the Carr Government would be talking about new taxes on small business during ‘Small Business September,’ an event funded by the NSW Government.

The tax they’re talking about, payroll tax is a tax on jobs, as it reduces the incentive to hire more staff and penalises businesses that aim to grow.

According to the NSW Chamber of Commerce, a small company with 12 employees and a payroll of $560,000 p/a (including superannuation, fringe benefits and employee entitlements) hires a new employee and then incurs a tax charge of $36, 360. So with payroll tax, to hire one extra worker you need to almost pay for two.

In the May 2002 State Chamber of Commerce and NRMA Local Business and Regional Affairs Survey, 43 per cent of businesses surveyed ranked payroll tax as the tax they would most like to see removed.

So once again Bob Carr is ignoring small business concerns. Small businesses across NSW are sick and tired of Bob Carr breaking his promises to remove taxes and charges like payroll tax. Bob Carr needs to spend more time helping small businesses in NSW and less time with book launches and media interviews.

Media contact: Sasha Grebe, 02 6277 7450

CMR 03-212