We Support Urgent Payroll Tax Reform in NSW

MTA NSW endorses Business NSW’s call for meaningful payroll tax reform and adds our members’ lived experience to the conversation.

Current settings continue to constrain hiring, investment and job creation across the motor trades and wider SME community.

Over recent years there has been only limited progress. In 2018, the NSW Government announced a staged plan to lift the payroll tax threshold to $1.0 million by 1 July 2021. The 2020–21 Budget then permanently increased the threshold to $1.2 million from 1 July 2020 and temporarily reduced the rate to 4.85% for two years. Since 1 July 2022, the rate has reverted to 5.45% and remains at that level. These settings continue to place a significant burden on businesses, limiting growth and the creation of new jobs.

Our position

To support employment and investment, MTA NSW is calling for:

• An increase to the payroll tax threshold to at least $1.5 million, with annual indexation to prevent bracket creep.
• A reduction in the payroll tax rate to below 5% to ease hiring headwinds.
• Consideration of a regional payroll tax rate to support border and regional businesses.
• Administrative simplification to cut red tape for employers.

Working with the broader business community

We are proud to stand with Business NSW in advocating for reform that delivers real, lasting benefits to employers and workers. Read Business NSW’s article here:

Why payroll tax reform must be on the economic roundtable agenda – Business NSW
https://www.businessnsw.com/members/member-alerts/why-payroll-tax-reform-must-be-on-the-economic-roundtable-agenda

Add your voice

Member input strengthens our advocacy. If payroll tax is affecting your ability to hire, invest or train, please share your experience with us so we can represent it in our engagement with government and stakeholders.

For enquiries or to share your story, contact:

Collin Jennings, Head of Policy and Advocacy, MTA NSW

eMail: [email protected]