Liberals unveil payroll tax reprieve election pledge, flag review of trading hours

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The Liberal Party has vowed to temporarily slash payroll tax by lifting the threshold to $1.5 million and commission a review of the current system, stamp duty and retail trading hours — if elected.

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.

WA Liberal leader Libby Mettam unveiled the tax plan on Saturday.Credit: Jesinta Burton

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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