The Liberal Party has vowed to temporarily slash payroll tax, lift the threshold to $1.5 million and commission a review of the current system if elected in March.
The Liberal Party has vowed to temporarily slash payroll tax, lift the threshold to $1.5 million and commission a review of the current system if elected in March.
By Jesinta Burton
February 1, 2025 — 5.51pm
The Liberal Party has vowed to temporarily slash payroll tax, lift the threshold to $1.5 million and commission a review of the current system, retail trading hours and stamp duty if elected in March.
Liberal leader Libby Mettam unveiled the proposal on Saturday, which would see businesses with a wage bill of up to $1.5 million per year receive a full rebate of up to $32,000 in the 2024-25 financial year, while companies with a wage bill below $3 million would receive a partial rebate.
In addition, the party would task the Economic Regulation Authority with overhauling the state’s payroll tax and regulatory arrangements — including retail trading hours.
Mettam said the plan was designed to provide relief for more than 7500 small businesses, many of which were grappling with rising costs, who she claimed had been neglected by the current government.
Opposition spokesperson Steve Martin said the tax was a “tax on jobs” and that the rebate would provide immediate and targeted relief while the ERA conducted its review.
The promise comes 10 months after the Nationals pledged to lift the threshold to $1.3 million and introduce a 15 per cent tax rebate for businesses with a wages bill below $4 million as part of a plan tipped to cost $292 million annually.
Currently, a payroll tax of 5.5 per cent is imposed on WA businesses with a wages bill of more than $1 million — providing a windfall of almost $5.5 billion last financial year.
The tax has long been a key focus of the state’s Chamber of Commerce and Industry, which has spearheaded a sustained campaign against a tax it deemed unfairly burdensome for small and medium-sized businesses.
A survey commissioner by CCIWA identified the tax as the number one business issue ahead of the 2025 state election.
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But Premier Roger Cook rubbished the Liberal Party’s plan, insisting the tax was an important revenue generator for the state and questioning the need for such a review.
He pointed out the state government had lifted the threshold to provide payroll tax relief in 2020 and that the tax was only for larger companies.
“The observation I’d make is that 90 per cent of small and medium-sized businesses do not pay payroll tax — it is only for those larger companies that get caught under what is an important revenue opportunity for government,” he said.
“They’re giving a 12-month reprieve, and then they’re saying that while they do that, they’re going to do a review.
“Well, what have they been doing for the last eight years?”
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Jesinta Burton – is a journalist with WAtoday, specialising in civil courts, business and urban development.Connect via Twitter or email.
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