Calls grow for payroll tax reform: Gome

Eight months ago, it was clear that by early 2009, Australian business was going to get hammered by the global financial crisis and the subsequent lack of credit.

It also became clear that the Government needed to provide some type of assistance to the many small and medium businesses that, through no fault of their own, were going to be walloped by this crisis.

SmartCompany began to call for payroll tax relief and reform, and started a petition that quickly attracted hundreds of signatures from business owners.

Employer groups are following suit. This morning the Business Coalition for Tax Reform called for the system of state-based payroll taxes to be replaced by a uniform national system of tax on the wages that employers pay. It would be administered by the Australian Taxation Office.

Under the plan, the tax collection would be centralised, and money collected would be delivered back to the states or new deals struck altogether, with compensation for scrapping a range of inefficient state-based business taxes.

The new plan would replace the complex and ridiculous system that presently is in place and requires employers to make forward calculations on staffing numbers taking into account the different thresholds that apply in each state.

It would also mean that as cashflow tightens, then tax relief could quickly be provided. This demand comes on top of calls this week from VECCI and ACCI, which are both calling for reductions in payroll tax as a short term measure to prevent companies laying off staff and pushing employees into part-time work.

Would you like to see the payroll tax system reformed? Comment below and sign our anti-payroll tax petition.