Premier Steven Marshall reveals final detail of plan to eliminate payroll tax for SA small business with wage bills up to $1.5m

PREMIER Steven Marshall has revealed details of his plans to abolish payroll tax for South Australian small businesses, including a new tweak to counter claims it could accidentally cost jobs — SEE WHAT IT MEANS FOR YOUR BUSINESS.

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PREMIER Steven Marshall has revealed details of his plans to abolish payroll tax for small business, including a new tweak to counter claims it could accidentally cost jobs.

The promise to eliminate payroll tax for businesses with a total wage bill of $1.5 million or lower was a major campaign pledge, which the State Government says will take SA from having the most punishing regime in Australia to the most competitive in the nation.

Currently, employers must start paying the tax when their wage bill exceeds $600,000.

Mr Marshall’s final plan includes a scale up of charges for payrolls between $1.5 million and $1.7 million.

Before the election, Labor warned firms with payrolls of just above around $1.5 million may shed staff in a bid to fall back under the threshold to avoid a large tax hit.

Mr Marshall said the Government had “under promised and over delivered”.

How the Government's plan to abolish payroll tax will impact your business. Picture: Supplied

“We made a payroll tax promise in the lead-up to the election. We’re extending that,” he said.

“What we are doing now is providing further concessions beyond that $1.5 million threshold so that we have transitional arrangements. “If businesses have more money in their pocket, they invest in more stock, they invest in better plant and equipment to grow.

“This is a massive benefit to all of the small and family businesses in SA.”

He said the Emergency Services Levy for households would come down this year, with a land tax cut planned in 2020 and further cost reductions after that “as the Budget allows”.

“This is the start of the relief that we want to provide to taxpayers,” Mr Marshall said.

The total cost of the payroll tax cuts will be $45 million per year.

Labor says it supports to principle of a payroll tax cut, but wants to examine the details.

The legislation will be introduced to Parliament today.

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