Push for payroll tax to be waived to help struggling NT businesses

The Territory Government has been urged to waive and defer payroll tax for the 2019-20 financial year to help Territory businesses keep their doors open during the coronavirus crisis.

CLP Opposition leader Lia Finocchiaro has urged the government to waive and defer payroll tax for the 2019-20 financial year to help Territory businesses keep their doors open during the coronavirus crisis. Picture: Glenn Campbell

THE Territory Government has been urged to waive and defer payroll tax for the 2019-20 financial year to help Territory businesses keep their doors open during the coronavirus crisis.

CLP Opposition Leader Lia Finocchiaro said NT’s small and medium sized businesses were struggling to deal with the COVID-19 crisis and needed as much support as possible to stay afloat.

“By refunding payroll tax for this financial year it will create immediate cash flow for small and medium businesses which will help keep people employed,” she said.

“Payroll tax is a tax on jobs and now more than ever the Territory needs people working and businesses to stay afloat.

“Further payroll tax relief is an effective way to allow businesses to keep the economy moving, as is action on power and water costs.”

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NT Chamber of Commerce president Greg Ireland agreed that scrapping payroll tax should be of critical importance right now.

“There are a number of businesses, particularly in tourism, who have laid off all of their employees and are closing the doors,” he said.

Territory Alliance leader Terry Mills has called for a UK-style wage subsidy of 75 per cent of Australians workers’ pay if they remain employed.

Prime Minister Scott Morrison has ruled out the idea, saying it would be slow to build and difficult to pull off.

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“Territory Alliance also propose that NT businesses that would otherwise close due to the COVID-19 pandemic be provided with a 75 per cent rental rebate by the Federal Government concomitant with landlords accepting 75 per cent of rents as full payment,” Mr Mills said.

“Territory Alliance also propose a loan facility, interest-free for 18 months, be made available to Territory based businesses in order to retain employees and maintain operations.

“After the initial 18 months interest-free period, an additional 18 month period with a 2.5 per cent interest rate would be offered.”