Business NSW calls for a “bold approach” in the State Budget

Paula Martin

Business NSW Central Coast Regional Director, Paula Martin, has called for a “bold approach” in the State Budget, set to be handed down in June, to “restore confidence and avoid job losses, as the impact of COVID-19 begins to take hold”.

“With everything that the State has confronted, from weak household demand to drought, bushfires and now COVID-19, we need robust action from the Government to ensure that NSW remains the place to do business in Australia,” Martin said.

She said business NSW was calling for: a reduction of payroll tax to protect employment in the sectors most affected; a deferral of payroll tax for SMEs to support business cash flow; a halt to any increases in government related fees and charges for business, including workers compensation premiums; implementation of targeted stimulus for businesses in heavily affected industries such as tourism; and, establishment of measures to better prepare NSW for future economic shocks.

“The focus of government should be on limiting the impact of government taxes, fees and charges so that communities and their local economies can recover sooner,” Martin said.

“Equally, sufficient resources will need to be made available to look after those directly and indirectly affected by recent and ongoing events.

“This must also include support for businesses which are vital to employment in NSW’s regional communities.

“Prior to last year’s State Election, Business NSW advocated for policy measures to protect NSW from natural disasters, including reducing taxes on insurance, providing flexible payroll tax arrangements, and ensuring that businesses get Government support from disasters quickly.

“Our (budget) submission calls for a tax relief package which would send a strong signal of support and provide businesses and consumers with the confidence to maintain spending, investment and employment levels.

“Last week, the Queensland Government gave employers a six month payroll tax holiday.

“It’s time for NSW to do the same.

“The benefits would extend beyond the direct relief offered to eligible employers, by giving communities, including employees and small business suppliers, greater confidence concerning their financial resilience during these tough times.

“There is also a strong case for targeted payroll tax reductions to support employers most at risk of reducing staffing levels.

“Our submission also points to the need to start planning now for the economic recovery and for strategies to help industries, especially tourism, take advantage of the recovery opportunities.”

Source:
Media release, Mar 11
Business NSW Central Coast, Paula Martin