SA Election 2018: SA Best plan to increase small business jobs by waiving payroll tax

SMALL businesses that take on more staff would avoid paying higher payroll tax as part of SA Best’s latest jobs plan.

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SMALL businesses that take on more staff would avoid paying higher payroll tax as part of SA Best’s latest jobs plan.

Employers with less than 20 staff would be eligible for the proposal, which would allow them to employ up to five additional full-time workers without being required to pay any additional payroll tax they would otherwise be subject to.

In cases where businesses take on more than five additional workers, the wages of the five employees would be discounted from the employer’s total payroll when calculating the tax owed.

“Under Labor, SA now has the worst payroll tax threshold of any other state in Australia,” SA Best leader Nick Xenophon said. Picture: AAP / Tracey Nearmy

SA Best predicts the plan could generate an extra 21,000 jobs, based on 3 per cent of eligible businesses taking on five additional employees.

It says 140,000 small businesses would be eligible for the incentive, which would become an “immediate priority” if it wins the balance of power in Saturday’s State Election.

“Under Labor, SA now has the worst payroll tax threshold of any other state in Australia,” SA Best leader Nick Xenophon said.

“We need to create jobs - not give small business a reason not to prosper and employ more people.”