PAYROLL TAX RELIEF May 2000

PAYROLL TAX RELIEF May 2000

In April 1995, the NSW Treasurer said, "we want to get down to the Queensland payroll tax level very soon". Mr Egan nominated 1999 as the year to achieve a reduction to 5% and then a further cut to 4% in the year 2000.

The NSW Treasurer has failed to deliver on his promised target, which is extremely disappointing from a business perspective. Currently, the rate is 6.4%, with NSW Treasury collecting more than $3.6 billion in payroll tax each year. This is a billion dollars more than when the Carr Government came to office in 1994/95.

In response to this unacceptable position, NSW Shadow Minister for Regional Infrastructure & Development, Ian Armstrong has prepared a Private Member's Bill to be introduced into Parliament, which will provide payroll tax relief for value-adding country businesses.

The Private Member's Bill proposes to amend the Payroll Tax Act 1971 to provide an exemption for rural and regional value-adding businesses which employ additional workers aged 25 or under. The National Party believes the exemption should apply for the first five years of a worker's employment.

Value-adding primary industries encompasses mining, forestry, agriculture, aquaculture, commercial fishing, horticulture, permaculture and viticulture and the processes involved in preparing, growing, producing, extracting product and marketing to the point of the retail shelf.

This Bill may help to further highlight the inequities being experienced by current businesses in NSW.

CROSS BORDER COMMISSION BILL

I whole heartedly support my colleague, Don Page in his introduction of the Cross Border Commission Bill into Parliament recently. I encourage the Coalition's initiative and I have always been vocal in highlighting the adversities often experienced by North Coast businesses and rural communities due to their proximity to the Queensland border. The examination of the many issues, such as education, business competition, recreational and sporting interests will undoubtedly enable the Commission, as proposed to highlight and suggest resolutions for future implementation.