|
2001-02 BUDGET PAYROLL TAX Member for Flinders Liz Penfold said tax relief for businesses will boost job creation. Almost $25 million in payroll tax will be cut and the tax-free threshold increased as a major plank in the Olsen Government’s Jobs Package. The cuts to payroll tax will reduce costs to a company with 30 employees by $1985 a year. As part of the jobs package: · The payroll tax rate will fall from 6% to 5.75% on 1 July 2001, saving business $24.5 million. · From 1 July 2002 payroll tax will reduce further to 5.67%. · The tax-free threshold will be increased from $456,000 to $504,000 · The payroll tax base will be broadened to include full grossed up value of fringe benefits and eligible termination payments. · Annual lease payments below $50,000 will be exempt from stamp duty from 1 January 2002. Mrs Penfold said the Liberal Government’s focus has been on creating an environment which gives business the confidence to employ. “It is largely the private sector – small, medium and large businesses – which ultimately delivers jobs for the majority of the community. “The business community, in its Budget submission to Government, urged a reduction in business costs, and we have delivered,” she said. Mrs Penfold said the Government earlier this year cut WorkCover levy rates for 2001-2002 by 14%, a benefit to employers of $103 million. |
|
Back to Media Releases |
