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Chamber Welcomes Payroll Tax Cut

Illawarra’s largest business organisation, Illawarra Business Chamber, has welcomed the NSW Government’s announcement to cut NSW’s payroll tax rate by a further 0.05% in tomorrow’s budget.

NSW’s payroll tax rate will be cut from the current rate of 5.65% to 5.5% from 1 July, six months earlier than originally planned, and then cut again by a further 0.05% to 5.45% from 1 January 2011.

“These cuts represent a $300 million reduction in the cost of doing business in NSW,” said Greg Fisher, CEO of Illawarra Business Chamber.

“NSW is in competition with the other states to be an attractive place to do business – cutting payroll tax makes NSW more competitive with Queensland and Victoria.

NSW Business Chamber outlined a fully-funded plan to cut NSW’s payroll tax rate to 4.95% by 2015 as part of its pre-election blueprint, “10 Big Ideas to Grow NSW”.

“Queensland and Victoria have payroll tax rates less than 5%.  We would like to see the NSW Government continue its campaign to cut payroll tax beyond 2011.”

Mr Fisher said that NSW businesses pay $1,870 in payroll tax per employee, compared to $1,498 in Victoria.

“A lower payroll tax rate in Victoria is an incentive for businesses to by-pass NSW and set up shop in Victoria. We need to continue the drive towards a more competitive tax rate with the other states.”