Business hails win but debt a concern

Jackie Trad’s surprise payroll tax shake-up has been praised by small business groups and economists.

Jackie Trad’s surprise payroll tax shake-up has been praised by small business groups and economists, but critics say the Palaszczuk government’s ballooning public service bill has crippled further economy-boosting infrastructure investments.

Deloitte Access Economics Queensland leader Pradeep Philip praised the $885 million payroll tax reform package, saying it was a “clever” move to help alleviate the effects of a slowing Australian economy.

“It’s an unexpected pro-business move and will be well ­received, even though larger businesses will end up paying a bit more,” Dr Philip said.

“Also the regional payroll tax discount — a 1 per cent discount on payroll tax for businesses where 85 per cent of their staff are outside southeast Queensland — is a clever move.”

Small businesses celebrated the payroll tax overhaul, with the Chamber of Commerce and ­Industry Queensland saying the shifting of the threshold from $1.1 million to $1.3m was “absolutely critical” in boosting employment and lifting business confidence.

But CCIQ spokesman Dan Petrie said the government’s enormous public service bill was taking vital funding away from more beneficial investments.

“The government’s budgetary challenges are still significant, with funds for investment in the wider economy becoming harder to find with 40 per cent over the state’s ­recurrent expenditure allocated to public service expenses,” Mr Petrie said.