Labor Leader Peter Malinauskas backs State Government plan to abolish small business payroll tax

PAYROLL tax is set be abolished for all small businesses in SA, as a new-look Labor Party swings support behind a State Government plan it says can deliver a major new jobs boost.

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PAYROLL tax is set to be abolished for all small businesses in SA, as a new-look Labor Party swings its support behind a State Government plan it says can deliver a major new jobs boost.

Opposition Leader Peter Malinauskas met formally with his new frontbench for the first time on Wednesday, where it can be revealed they backed a dramatic payroll tax threshold increase.

Currently, SA has the lowest cut-off point in the nation for payroll tax and businesses are forced to begin paying the charge when their total wages bill tops $600,000.

Leader of the Opposition Peter Malinauskas chairing the first meeting of the shadow cabinet at Parliament House on Wednesday. AAP Image/Kelly Barnes

Under State Government plans, that would rise to $1.5 million and be the nation’s most competitive.

Mr Malinauskas, pictured, told The Advertiser Labor had a long record of reducing the “tax on jobs” and would put “mums and dads and working families” above political games in Opposition.

SA currently has the nation’s highest unemployment rate, at 6.3 per cent, with expert predictions it could continue to rise as the full impact of Holden’s closure is felt.

Mr Malinauskas said he would hold the Government to account on details of implementing the tax cut and properly funding it, but strongly backed a reform he expected would create jobs.

“In Labor, we believe in jobs,” he said. “Small to medium business is the engine room of our economy. We support, and I support, payroll tax reductions because it should result in more jobs. That’s good for everybody, but particularly good for working families.”

Labor’s support means that Premier Steven Marshall won’t be forced to negotiate with a complicated Upper House crossbench that includes an independent, the Greens and SA Best.

Treasurer Rob Lucas intends to deliver the cut as part of the new Government’s first State Budget, due in September. It would start from January 1 and cost $45 million per year.

Announcing the policy in the election campaign, Mr Marshall said: “This major tax reform will cut the cost of doing business ... incentivising them to create thousands of new jobs”.

In government, Labor offered concessions to reduce the payroll tax burden on small business and Mr Malinauskas has previously called for cuts as head of the shop assistants’ union.

“When we were in government, we delivered payroll tax cuts,” he said on Wednesday.

“I’m not going to oppose something that I think is good for people, so we’ll support it.

“If there are policies that result in everyday mums and dads and working families having a job, that means they can have a decent standard of living and provide for their families. It’s all upside. It’s important economically, it’s important socially.”

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