According to the Sydney Morning Frontier, the government will introduce tax cuts in its final budget before the state election, shifting people's focus away from the mountain of infrastructure projects.
Treasury Secretary Dominic Perrottet will cut payroll taxes on companies in his budget submission on Tuesday. Between 2021 and 2022, the threshold for new state payroll taxes rose from seven hundred and fifty thousand yuan to 1 million yuan, saving 881 million yuan in four years.
The government says nearly 40, 000 companies in the new state will benefit from the tax cuts. Sixty percent of them are based in Sydney. It is understood that 5000 enterprises will no longer pay payroll tax.
Perrottet said the budget will focus not only on the future of the city, but also on helping people, as part of the tax cuts.
"my idea of this Budget is to focus on the lives of all of us from the bottom of my heart. Cost of living is a problem, balancing life and work is also a problem, we want to meet everyone's needs. This budget will help us with the problems we are facing now. "
In an interview, Perrottett said the budget was a twofold focus, as it not only continued to fund long-term government infrastructure projects, but also focused on the current lives of residents.
The government has hinted that it will invest heavily in health and education. It has invested 6 billion yuan over four years to build and upgrade public schools. At the same time, the government will also increase the investment in mental health and first-line health workers.
Tuesday's budget is also the last before next March's new state elections.
The government raised its payroll revenue forecast for the next four years by 1.2 billion yuan when it updated its budget in December, thanks to strong employment growth in the new state.
According to the regulations, all new state enterprises that have reached the salary threshold set by the government are required to pay payroll tax. But according to changes in the budget, the threshold will reach 1 million yuan between 2021 and 2022.
It is reported that the payroll tax is the most stable and efficient new state tax category, but also the new state government direct collection of taxes the second largest source of tax. The government forecasts that payroll tax revenue will reach nearly 9 billion yuan this fiscal year.
Tuesday's payroll tax reform means the new state has cut taxes for the third year in a row, Perrottett said. "if you look at the economic situation in the new state, we have a lot of surplus, we have a record number of infrastructure projects, and we have introduced tax cuts twice before and in this Budget," he said.
Deputy Governor and small Business Director John Barilaro said the payroll tax reform would give many small business bosses the opportunity to "hire more employees or implement new plans to develop businesses".
"I used to be a small business operator, and I know how difficult it is to run a business. Now, I'm the head of a small business, and I want to make life as easy as possible for those who do business and create job opportunities for others. "
In the coming fiscal year, nearly 40, 000 companies will save 5450 yuan, and by 2021-2022, they will save 13625 yuan.
By 2018-2019, the payroll tax threshold will be raised to eight hundred and fifty thousand yuan, followed by an annual increase of 50, 000 yuan to 1 million yuan.