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VIC Cuts Payroll Tax in State Budget: NSW Must Follow - 30 May 2006

The pressure on the NSW Government to cut payroll tax in next week’s State Budget has intensified following the release of Victoria’s Budget today said the Illawarra’s leading business organisation the Illawarra Business Chamber.

The Victorian Budget cut business taxes across the board including:

• A cut in the rate of payroll tax from 5.25 to five per cent over two years
• Reductions in land tax - reducing rates and eliminating indexation
• A further 10 per cent cut in WorkCover premiums
• Measures to cut red tape for businesses and not-for-profit organisations
  
  “The Victorian Budget is a reminder to NSW that it must continue cutting business taxes", said Mark Grimson CEO of Illawarra Business Chamber.
  
  "NSW must be competitive. We have the highest payroll tax rates and costs in Australia. The NSW payroll tax rate is 6% compared to 5% in Victoria and 4.75% in Queensland”,
  
  “The Victorian Budget is a reminder to NSW that it cannot rest on its laurels. We have seen some positive initiatives over the past year with the end of the vendor duty, cuts to workers compensation premiums of 15% and work in reducing red tape, but our interstate competitors are also working hard.
  
  “Business has put forward a plan that responsibly cuts the NSW payroll tax rate from 6.00% to 5.25% over four years. The NSW Government must start to address this imbalance in payroll tax.
  
  “The NSW economy needs a kickstart. It is the slowest growing economy in Australia. The best way to encourage business to NSW is by lowering business costs and the Government must cut payroll tax.
  
  For Further Information: Mark Grimson at IBC 4229 4722 or 0409155240