Mrs AAGAARD - 2004-05-18
Can you please advise the House what the business reaction has been to the payroll tax announcements made earlier today.
ANSWER
Madam Speaker, I thank the member for Nightcliff for her question. She came from a business background, so she understands better than the turkeys opposite the effect this will have on business and industry across the Northern Territory. I have to say, pretty pleased would be the way I would sum up the reaction from business. Business understands what a huge shift this will be. Eighty-three businesses will not have to pay payroll tax after 1 July 2004; 162 in total will not have to pay payroll tax after 1 July 2005. Of these, 127 will be locally-based Territory businesses, and these will be the big winners: $20 500 taken off their tax burden. If I was a local business person out there with that sum lifted off my shoulders, I would be pretty pleased too.
One thousand four hundred businesses receive a benefit from these decisions, with each and every one of them having more money in their pocket. However, more importantly, not only does it allow them to spend more on goods and services, it allows them to employ more people. We do not know what the disincentive effect might have been, if business is about to go into the payroll tax threshold, and says: ‘Oh, will we be able to employ that extra person or two - or four or five people?’. They now have room to move. If they are in or around the $600 000 payroll, they do not have to worry about it until they get to an $800 000 payroll and, next year, they do not have to worry about it until they get to $1m.
Therefore, it is an absolute pro-growth and pro-business move by government. It will mean more jobs, extra production, and it is an outstanding result for Territory business.
ANSWER
Madam Speaker, I thank the member for Nightcliff for her question. She came from a business background, so she understands better than the turkeys opposite the effect this will have on business and industry across the Northern Territory. I have to say, pretty pleased would be the way I would sum up the reaction from business. Business understands what a huge shift this will be. Eighty-three businesses will not have to pay payroll tax after 1 July 2004; 162 in total will not have to pay payroll tax after 1 July 2005. Of these, 127 will be locally-based Territory businesses, and these will be the big winners: $20 500 taken off their tax burden. If I was a local business person out there with that sum lifted off my shoulders, I would be pretty pleased too.
One thousand four hundred businesses receive a benefit from these decisions, with each and every one of them having more money in their pocket. However, more importantly, not only does it allow them to spend more on goods and services, it allows them to employ more people. We do not know what the disincentive effect might have been, if business is about to go into the payroll tax threshold, and says: ‘Oh, will we be able to employ that extra person or two - or four or five people?’. They now have room to move. If they are in or around the $600 000 payroll, they do not have to worry about it until they get to an $800 000 payroll and, next year, they do not have to worry about it until they get to $1m.
Therefore, it is an absolute pro-growth and pro-business move by government. It will mean more jobs, extra production, and it is an outstanding result for Territory business.
Last updated: 09 Aug 2016