Barossa’s small business owners live in hope that the State’s Liberal plan to cut the payroll tax will be realised if elected this March.
Under the State Liberal plan, businesses with taxable payrolls of up to $1.5 million will be exempt from any payroll tax from January 1, 2019.
The legislative change required will be to exempt businesses with payrolls between the existing threshold of $600,000 and $1,500,000 from paying any payroll tax.
For Tanunda Bakery owner Elke Trinkle, the exemption will mean the difference between continuing to pay her loyal staff “above award wages”.
Currently, Mrs Trinkle employees up to 20 staff, mostly casuals, yet expressed concerns about the payroll tax burden which would affect her employees and ultimately the running of her business.
To prevent a dire situation, she had invested in solar energy which is effectively helping to reduce her business running costs.
Yet, with higher costs incurred through the payroll tax, she said this could zero out the savings.
Schubert MP Stephan Knoll said small businesses are the backbone of our local economy and this policy would reduce the tax burden to help these businesses to grow and create more jobs.
“Small businesses in our region have been bogged down by sky rocketing taxes and utility bills and the State Liberals recognise the need to ease that burden after 16 years of Labor,” Mr Knoll said.
“This is a really important announcement for regional areas such as the broader Barossa area, as these small businesses can invest the money they have been allocating on payroll tax to employ more staff and put these important dollars back into the business.
“We have so many small businesses who stand to benefit from this tax relief such as those in the wine and food sector more broadly, tourism operators and even local restaurants and pubs.
“Many of these small businesses are family owned and run, and their livelihoods depend on running a successful business and we want to support them by cutting taxable payrolls of up to $1.5 million,” he said.