Small businesses in South Australia will no longer be subject to payroll tax, under proposed new laws hoped to deliver more jobs and lower costs.
The legislation exempts the state’s 3200 businesses with taxable payrolls of up to $1.5 million from the tax.
“At long last the economic handbrake is coming off small businesses in this state who will soon have more money in their pockets to reinvest into their operations to drive growth,” Premier Steven Marshall said on Wednesday.
Businesses with payrolls between $1.5 and $1.7 million are also set to benefit with a proposed reduction to the current regime.
Under the new plan businesses with a payroll of $1.6 million would pay $24,750 as opposed to the current $49,500.
“It is a further tax concession to small businesses in SA, the people that we want reinvesting in their business, creating further investment and most importantly employing more young people in this state,” Marshall said.
The proposed change which lifts the current payroll exemption from $600,000 to $1.5 million would come into effect on 1 January 2019.
Marshall was recently elected on a platform of business-friendly reforms promising to cut the emergency services levy, cap council rates and deregulate shop trading hours.
