Master Builders and Civil Contractors Federation survey reveals jobs could be created by waiving payroll tax

A vast majority of businesses said they would employ more Tasmanians if a state government tax was waived, according to a survey by the state’s two largest construction lobby groups. See their plan for more jobs >>

• Plan to waive payroll tax in Tasmania amid pandemic
• Payroll tax punishes Tasmanian business for hiring staff

HUNDREDS of Tasmanian jobs could be created if payroll tax is waived, a survey has ­revealed.

Master Builders Tasmania executive director Matthew Pollock said the results of the survey revealed 60 per cent of Tasmanian businesses ­surveyed said payroll tax ­implications were a significant negative factor when making decisions around employing more people or filling vacancies.

“Importantly, 76 per cent of businesses said they would employ more Tasmanians if payroll tax was waived, indicating that over 200 jobs could be created,” he said.

Executive director for Master Builders, Tasmania, Matthew Pollock. Picture: Zak Simmonds

“The survey covered a small sample of businesses, but if the results were extrapolated across the economy, a waiver of payroll tax while COVID lockdown restrictions are still in place could save as many as 1000 jobs.”

Civil Contractors Federation Tasmania CEO Rachael Matheson said many businesses had already needed to let people go.

“Our biggest concern is that skilled workers will be forced to look for work on the mainland. We won’t be able to build our way out of this crisis if a big chunk of our workforce is ­interstate,” she said.

She said waiving payroll tax would show the government was serious about creating and supporting jobs. “The relief that the government has offered tourism and hospitality has been welcomed by the entire business community, but the impacts of COVID are widespread,” she said.

“Private sector building and construction projects have been delayed or cancelled, which has really hit our members. The government’s stimulus plan provides a great platform for recovery, but without the private sector work many in the industry will struggle.”

Premier Peter Gutwein said the state government had already implemented the largest social and economic support package in the country, in proportion to our economy.

He said payroll tax had ­already been waived for businesses with payrolls up to $5 million and for businesses in the tourism, hospitality, and fishery industries.