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Small businesses do pay payroll tax



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Media Release Geoff Prosser M.P. FEDERAL MEMBER FOR FORREST

Shadow M inister for Small Business, Housing a n d Customs.

26 November 1992

SMALL BUSINESSES DO PAY PAYROLL TAX

The small business sector should be flattered by all the attention it has received from the Government in 'Question Time' in recent weeks- in fact 'Question Time' appears to be the only time in which the Labor Party gives any consideration to small business at all.

In Question Time today, the Treasurer continued along his track of misinformation by stating that small businesses will not get any benefit from the abolition of payroll tax. This is a blatant untruth.

Firstly, given that the payroll tax threshold is between 9 and 11 employees, many small firms do pay payroll tax. These businesses will benefit directly from its abolition. *

Secondly, small businesses will gain indirectly from the abolition of payroll tax because all of their large suppliers do pay this tax and build the cost into their prices. Accordingly, the abolition of payroll tax will mean lower input costs for small business.

Moreover, the abolition of payroll tax will encourage the growth and expansion of small business. The fear of yet another tax - and higher costs - acts as a severe disincentive to the expansion of small firms. "Of course, this is reflected in fewer job opportunities.

Conveniently, in all of their tirades about small business, the government has not pointed out any of the many benefits of Fightback! for small business, including:

. more generous Capital Gains Tax exemptions, including the introduction of a roll-over; . lower business costs brought about by the abolition of 7 taxes on business; . more sales as a result of a massive increase in consumers' disposable

income; and

. an improved cash-flow,

ends Canberra

For further information contact Karen Kuschert on (06) 277 4717.

COMMONWEALTH PARLIAMENTARY LIBRARY MICAH