WA’s ‘big end of town’ is set to cop a beating on payroll tax as the McGowan Government looks to big employers and corporations to repair the budget.
From the 1st, July next year, WA’s large employers will have to pay an extra 6% on payroll tax if their total payroll goes over $100 million.
The news is a sigh of relief for small businesses and 92% of payroll tax payers as the increases will not be applied to them.
The temporary repair measure will last for five years as the Treasurer looks to big corporations to fix the budget, instead of increasing fees or charges for struggling households and small businesses.
It’s expected that the new payroll tax change will raise $435 million over the forward estimates.
The State’s gold miners will also share the burden following the government’s new tiered gold royalty rate, determined by the gold price based on the Australian Dollar.
The increase will mean a 3.75% rate (or $20) will apply when the gold spot price reaches above $1,200 per ounce, the 2.5% rate on $1,200 per ounce or less remains unchanged.
It will also apply to goldmines that produce more than 2,500 ounces per year and large producers will also lose their annual first 2,500 ounces gold royalty exemption.
The government believes this move will effect 50 gold mines in Western Australia.
During Thursday’s State Budget briefing to journalists, WA Premier Mark McGowan and Treasurer Ben Wyatt regretted their decision to introduces the measures.
Both Mr McGowan and Mr Wyatt believes that tough and unpopular decisions need to be made.
They argued that only one percent of businesses in WA will be affected by the payroll tax change.
“I think there will be understanding as well, I think we gone in great lengths to limit its application both in terms of number of corporations it applies to,
“… This is something that i think everybody, when I move around corporate WA, the first thing they say is that you’ve got hell of a job, and you have to make some pretty tough decisions.”
“I hope they understand this is one of them.”