Starting in 2019, small businesses in South Australia are expected to cut corporate taxes, and the Liberal government's plan to cut payroll taxes has largely passed the state Congress. Peter Malinauskas, head of opposition party, said Labour was willing to work with government to raise the payroll tax threshold to A $1.5 million.
Treasury Secretary Treasurer Rob Lucas welcomed the move. Government's plan, he said, will also be supported by neutral lawmakers. This will make local enterprises more competitive.
Anthony Penney, a spokesman for the South Australian Chamber of Commerce, said on Thursday April 12: "if we want to see South Australian companies flourish and our South Australia growth, then raising the payroll tax threshold is essential. By raising the threshold to A $1.5 million, we will see that South Australia is no longer Australia's minimum wage state, which means that South Australia has an advantage over other states in trying to attract new businesses. "
However, Penney would like to see detailed new policies to ensure that all companies benefit from it, and that it is good for companies that are close to the payroll tax threshold and hire more employees.
Lucas said the government was aware of the problem and was working on a "phasing-out" plan, but still believed the tax cuts could reach A $45 million a year. "this will be an important step in job creation," he said.
As early as the state government elections in March, wage tax cuts led by the Liberal Party had already boosted jobs. Labour supports the current A $ six hundred thousand payroll tax threshold, but Mr Malinauskas says the party also supports the plan currently proposed by the Liberal Party. He said the, opposition party wanted to know the details of the tax reform and the sources of funding, but they also supported it.
"We support it, and I personally support wage tax cuts because it can create more jobs." "it's good news for everyone, especially working families," he said.