Hon Mark McGowan BA LLB MLA

Hon Mark McGowan BA LLB MLA

Premier; Minister for Public Sector Management; State Development, Jobs and Trade; Federal-State Relations

Hon Ben Wyatt LLB MSc MLA

Hon Ben Wyatt LLB MSc MLA

Treasurer; Minister for Finance; Aboriginal Affairs; Lands

Hon Paul Papalia CSC MLA

Hon Paul Papalia CSC MLA

Minister for Tourism; Racing and Gaming; Small Business; Defence Issues; Citizenship and Multicultural Interests

    McGowan Government delivers payroll tax relief for WA businesses

    31/10/2019 9:00 AM
     
    • Payroll tax cut for nearly 12,000 small and medium businesses in WA
    • Exemption threshold lifted by $150,000 over two years
    • Changes will provide $170 million in tax relief over four years
    • Reduced costs for business to expand and create more jobs
    • Tax relief only possible due to McGowan Government's careful budget management
    • $535 million invested by McGowan Government in recent weeks to help stimulate the WA economy and create jobs for Western Australians 

    The McGowan Labor Government will deliver payroll tax relief to up to 12,000 WA businesses, providing a stimulus to the State's economy and supporting new jobs for Western Australians.

     

    As part of the $170 million payroll tax package, the payroll tax exemption threshold will be increased by $150,000 over the next two years.

     

    Currently, WA businesses with Australia-wide payrolls of up to $850,000 are exempt from payroll tax. The annual threshold will be increased to $950,000 from January 1, 2020, and again to $1 million from January 1, 2021.

     

    Raising the payroll tax threshold will result in around 1,000 businesses in Western Australia no longer being liable for any payroll tax, while also cutting payroll tax liability for an additional 11,000 businesses.

     

    Reducing the payroll tax burden on Western Australian small and medium businesses will lower the costs associated with the hiring of additional staff, and provide an opportunity for those businesses to reinvest.

     

    Importantly, these changes will also bring Western Australia's payroll tax regime more into line with those in other States.

     

    Comments attributed to Premier Mark McGowan:

     

    "This payroll tax cut reflects my Government's commitment to growing our State's economy, supporting small business and creating more jobs for Western Australians.

     

    "This package will deliver real incentives for thousands of local businesses to hire additional staff, and is the latest in a series of measures announced to stimulate WA's economy.

     

    "We've listened to requests from WA businesses to help reduce costs and because of our responsible budget management we can now deliver this payroll tax reform package.

     

    "By getting the finances under control, we can continue to deliver for Western Australians and get things done."

     

    Comments attributed to Treasurer Ben Wyatt:

     

    "With these reforms, around 70 per cent of all payroll tax paying employers in Western Australia will receive a reduction in their payroll tax bill.

     

    "Once these reforms are fully implemented, some businesses in Western Australia stand to be around $9,300 better off per annum than under the current thresholds.

     

    "Together with the Employer Incentive Scheme that was introduced in July, these reforms will offer significant support to small businesses taking on additional staff in Western Australia.

     

    "It is a matter of record that the previous Liberal National Government introduced a diminishing exemption threshold for payroll tax in July 2015, which cost WA businesses $118 million.

     

    "Despite the financial mess that was left to us by the Liberals and Nationals, the McGowan Government's disciplined financial management has turned the State's finances around, allowing us to fund important economic reforms such as reducing costs for small and medium business in Western Australia."

     

    Comments attributed to Small Business Minister Paul Papalia:

     

    "Small businesses are the big winners from the McGowan Government's payroll tax reform.

     

    "Small businesses employ more than 491,000 Western Australians, contribute in excess of $48 billion to the State's economy and help sustain the social fabric of local communities.

     

    "Raising the payroll tax threshold will reduce the financial barrier for small businesses considering expansion of their operations and employing more staff, which will help grow jobs and further boost the economy."

     

    Premier's office - 6552 5000

    Treasurer's office - 6552 5900

    Small Business Minister's office - 6552 5600

     

    Taxable payrollCurrent liabilitySavings under $950,000 thresholdTotal savings under $1m threshold
    $900,000$3,102$3,102$3,102
    $950,000$6,203$6,203$6,203
    $1,000,000$9,305$6,156$9,305
    $1,500,000$40,320$5,682$8,589
    $2,000,000$71,335$5,209$7,873
    $2,500,000$102,350$4,735$7,157
    $3,000,000$133,365$4,262$6,442
    $3,500,000$164,380$3,788$5,726
    $4,000,000$195,395$3,315$5,011
    $4,500,000$226,410$2,841$4,294
    $5,000,000$257,425$2,368$3,579
    $5,500,000$288,440$1,894$2,863
    $6,000,000$319,455$1,421$2,147