TCCI and Master Builders call on state government to waive payroll tax until restrictions end

The state’s commerce and building lobbyists want to put more cash in the pockets of Tassie businesses and save jobs by asking the government to waive payroll tax until the pandemic ends. SEE THEIR PLAN >>

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THERE are calls for the state government to waive payroll tax for Tasmanian businesses until coronavirus business-related restrictions are lifted.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the move would save jobs.

“Payroll tax is a tax on jobs. It hurts businesses, it is a massive disincentive to creating new jobs or filling vacant positions and it’s hurting business confidence when we can least afford it,” Mr Bailey said.

TCCI chief Michael Bailey said the plan will save jobs amid the COVID-19 crisis.

“With the COVID-related restrictions, businesses are fighting for survival with one-hand already tied behind their backs. Adding payroll tax on top of that will cost jobs.”

The state government’s previous payroll tax relief scheme ended at the start of July.

Mr Bailey’s calls were echoed by Master Builders executive director Matthew Pollock who said the economic shockwaves of coronavirus were hurting the state’s building sector.

“Already around a 1000 building jobs have been lost and what we need now is for the government to consider bold and decisive action to encourage businesses to create jobs,” he said.

“We need to support businesses to support their workforces, otherwise we will start to see skilled Tasmanians, especially in building and construction, leave the State to find work.

“That won’t just hurt us now, but risks the capacity of the industry to help build our way out of this crisis.”

Businesses are currently not required to pay payroll tax on JobKeeper payments.

Premier Peter Gutwein said the state government would look at additional support measures “if and when required.”

“We have provided the most generous payroll tax relief in the country. For those businesses in affected areas such as hotels and hospitality, we have provided payroll tax relief which has been a waiver of the 1920 Payroll Tax Bill,” he said.

“That is significant and no other state has done that.”