WA Budget 2025: Opposition calls for rethink on payroll tax as companies feel the pressure
Shadow treasurer Sandra Brewer has called on the Cook Government to reform payroll tax after it was left untouched in this week's State budget.
Ms Brewer said the Government should look at either increasing the threshold to have to pay the tax or to lower the rate of the tax itself.
Despite the call, she did not have a suggestion on how much to change either number by.
Ms Brewer said the pleas from businesses had been falling on deaf ears.
'Industry associations and employer groups have been asking for a higher threshold and a lower rate to be more competitive with other Australian states for years now, but the government doesn't listen,' she said.
'The opposition is open to listening to all views on payroll tax but we encourage the government to use their parliamentary power and their record receipts of royalties and taxes to look at reforming this tax.'
Currently, business with wages of more than $1 million pay payroll tax, with the rate increasing progressively through to business with wages of more than $7.5 million where the full rate of 5.5 per cent is applied.
According to the Budget, the payroll tax raised $5.88 billion in the 2024-25 financial year and is tipped to rise to $6.15 billion in 2025-26.
By 2028-29, the revenue raised by the tax is expected to surpass $7 billion.
Surveying business Vision Surveys Consulting owner Jay Sidhu said he was feeling the pinch from payroll tax.
'Payroll tax is just an unnecessary burden to businesses, especially businesses like us in an economy like this where we're trying to hire more staff,' he said.
'It's being that hindrance for us to even look at potentially hiring more people, it's something that we have to consider very strongly before we actually think of growing sustainably.'
Ms Brewer also linked the tax to the current housing shortfall, saying the tax disincentivized construction businesses from growing, limiting its capacity.
'I'm constantly approached by businesses who are finding the rising costs of doing business extremely difficult, and payroll tax is just another cost,' she said.
'It has to be passed on to clients or consumers and that contributes to everything going up.
'We see it particularly in small businesses that are working in the housing sector they have enormous costs and payroll tax is another burden that needs to be passed on to, ultimately, the home buyer.'
A State Government spokesperson said taxes were being constantly monitored.
'Our Government continually monitors its tax settings, including payroll tax, to ensure our tax system is fair and competitive with other jurisdictions,' they said.
'It's important to note more than 90 per cent of WA's 235,000 businesses don't pay payroll tax — only larger businesses, and in recent years we've seen incredibly strong growth in business investment.
'Our government has delivered a range of tax reforms to support businesses and reduce red tape, including the biggest increase in the payroll tax threshold in more than two decades in 2020 when we increased the payroll tax exemption by $150,000.
'This provided a payroll tax cut to about 70 per cent of payroll tax paying businesses, including around 1000 that were no longer required to pay payroll tax.'
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It's about system optimisation. We think it's the right balance for a first application." Ford is also spruiking the vehicle-to-load charging capabilities (V2L) of the Ranger PHEV. It features a pair of 15A power outlets, which allow owners to plug electrical applicances into the vehicle to use it as a generator. Ford dubs this 'Pro Power Onboard' and it offers a total capacity of 6900W, which exceeds the capacity of both the Shark 6 and Cannon Alpha PHEV. Ultimately, Ford has attempted to create an electrified version of Australia's best-selling vehicle that outperforms its diesel stablemates while staying true to the roots of the Ranger brand. "The PHEV isn't just an alternative, it can do everything the diesel can do and then some. The truck is more capable because it's a hybrid. It still does truck things but there's a new thing it can do with exportable power," said Mr Baumbick. "For us, it was about optimising the system for performance, towing and capability. Our target was diesel [performance] or better. "It offers hybrid propulsion, [better] fuel economy, and the superpower of Pro Power Onboard. "It's the right time for a PHEV, and unlocking this new superpower for Ranger. This is going to show our customers the benefits of electrification without any tradeoff to what the truck is capable of." Of the three PHEV utes now available in Australia, the Ranger is the most expensive – the base XLT is priced from $71,990 before on-road costs, more than the most expensive Cannon Alpha PHEV and Shark 6. BYD has already reacted to the arrival of the Ranger PHEV, stating it's not worried about the new electrified ute. "I wouldn't say that we're worried," BYD Australia senior product planning manager, Sajid Hasan told CarExpert. "We respect them, direct competitors, but we're more focused on ourselves and working to expand the Shark 6 lineup and see where that takes us." MORE: Explore the Ford Ranger showroom Content originally sourced from:
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A "comfortable" retirement includes top-level health insurance, a reasonable car and leisure activities. The cost of either outcome was increasing slower than Australia's current 2.4 per cent headline inflation but retiree budgets remained under pressure from rising food, energy and health costs. Couples on average need $73,900 annually for a comfortable retirement, while most singles needed $52,300 per year, ASFA says. For a modest retirement covering the basics, couples needed $48,200 each year, singles $33,400, or for renting couples, $64,250, and $46,660 each year for singles who rent. The figures underlined the importance of increasing Australia's housing stock, Ms Delahunty said. "They also illustrate how super can be the difference between hardship and stability later in life, especially for renters." For some workers, the extra contribution will come from their existing pay package, according to CPA Australia's superannuation lead Richard Webb. "It's a good idea to check with your employer to see how they view the changes and what it means for you," he said. Workers on contracts with a total remuneration package could see a slight drop in their take-home pay, while those on award or enterprise agreements would likely receive the contribution on-top of their current pay. When compulsory superannuation was introduced in 1992 - in part to reduce government spending on the Age Pension - only one in 10 Australian retirees listed super as a source of income. Nine in 10 people between 30 and 50 now have super. Government spending on the Age Pension is projected to fall from 2.3 per cent of gross domestic product in 2020 to two per cent by 2062/63, despite a doubling of the over-65 population and a trebling of over-85s over the same period. However the super guarantee increase wouldn't help those who missed out on paid work for extended periods, Super Consumer Australia chief executive Xavier O'Halloran said. "(For) people who have caring responsibilities or who have been locked out of the unaffordable housing market ... increasing SG further won't address those inequalities," he told AAP. Mr O'Halloran said there was more that could be done to support people struggling in retirement, when a significant portion of their autumnal years' savings were made. "Right now, there are no minimum standards for retirement products like there are for MySuper," he said. "There is also no performance testing of retirement products, so super funds can still sell poor products." Australian workers can look forward to a bigger nest egg, with an increase to the superannuation guarantee to add tens of thousands of dollars to the average super account. From July 1, employers' minimum required contribution to employees' superannuation accounts will rise from 11.5 per cent to 12 per cent. It's the latest and last in a series of incremental increases from nine per cent over more than a decade since they were legislated by the Rudd-Gillard Labor government in 2012. With the latest bump, a 30-year-old earning $60,000 would have an extra $20,000 in super by retirement, according to the Association of Superannuation Funds Australia. It will add about $300 each year to the superannuation of a worker on a $60,000 salary, or $500 for someone on a $100,000 salary. "The system foundations are cemented for young, working people to have a comfortable retirement," ASFA chief executive Mary Delahunty said. "It's a moment all Australians should be proud of." The association says the cost of a comfortable retirement increased 1.6 per cent in the past year, while the cost of a modest retirement rose 1.7 per cent. A "comfortable" retirement includes top-level health insurance, a reasonable car and leisure activities. The cost of either outcome was increasing slower than Australia's current 2.4 per cent headline inflation but retiree budgets remained under pressure from rising food, energy and health costs. Couples on average need $73,900 annually for a comfortable retirement, while most singles needed $52,300 per year, ASFA says. For a modest retirement covering the basics, couples needed $48,200 each year, singles $33,400, or for renting couples, $64,250, and $46,660 each year for singles who rent. The figures underlined the importance of increasing Australia's housing stock, Ms Delahunty said. "They also illustrate how super can be the difference between hardship and stability later in life, especially for renters." For some workers, the extra contribution will come from their existing pay package, according to CPA Australia's superannuation lead Richard Webb. "It's a good idea to check with your employer to see how they view the changes and what it means for you," he said. Workers on contracts with a total remuneration package could see a slight drop in their take-home pay, while those on award or enterprise agreements would likely receive the contribution on-top of their current pay. When compulsory superannuation was introduced in 1992 - in part to reduce government spending on the Age Pension - only one in 10 Australian retirees listed super as a source of income. Nine in 10 people between 30 and 50 now have super. Government spending on the Age Pension is projected to fall from 2.3 per cent of gross domestic product in 2020 to two per cent by 2062/63, despite a doubling of the over-65 population and a trebling of over-85s over the same period. However the super guarantee increase wouldn't help those who missed out on paid work for extended periods, Super Consumer Australia chief executive Xavier O'Halloran said. "(For) people who have caring responsibilities or who have been locked out of the unaffordable housing market ... increasing SG further won't address those inequalities," he told AAP. Mr O'Halloran said there was more that could be done to support people struggling in retirement, when a significant portion of their autumnal years' savings were made. "Right now, there are no minimum standards for retirement products like there are for MySuper," he said. "There is also no performance testing of retirement products, so super funds can still sell poor products." Australian workers can look forward to a bigger nest egg, with an increase to the superannuation guarantee to add tens of thousands of dollars to the average super account. From July 1, employers' minimum required contribution to employees' superannuation accounts will rise from 11.5 per cent to 12 per cent. It's the latest and last in a series of incremental increases from nine per cent over more than a decade since they were legislated by the Rudd-Gillard Labor government in 2012. With the latest bump, a 30-year-old earning $60,000 would have an extra $20,000 in super by retirement, according to the Association of Superannuation Funds Australia. It will add about $300 each year to the superannuation of a worker on a $60,000 salary, or $500 for someone on a $100,000 salary. "The system foundations are cemented for young, working people to have a comfortable retirement," ASFA chief executive Mary Delahunty said. "It's a moment all Australians should be proud of." The association says the cost of a comfortable retirement increased 1.6 per cent in the past year, while the cost of a modest retirement rose 1.7 per cent. A "comfortable" retirement includes top-level health insurance, a reasonable car and leisure activities. The cost of either outcome was increasing slower than Australia's current 2.4 per cent headline inflation but retiree budgets remained under pressure from rising food, energy and health costs. Couples on average need $73,900 annually for a comfortable retirement, while most singles needed $52,300 per year, ASFA says. For a modest retirement covering the basics, couples needed $48,200 each year, singles $33,400, or for renting couples, $64,250, and $46,660 each year for singles who rent. The figures underlined the importance of increasing Australia's housing stock, Ms Delahunty said. "They also illustrate how super can be the difference between hardship and stability later in life, especially for renters." For some workers, the extra contribution will come from their existing pay package, according to CPA Australia's superannuation lead Richard Webb. "It's a good idea to check with your employer to see how they view the changes and what it means for you," he said. Workers on contracts with a total remuneration package could see a slight drop in their take-home pay, while those on award or enterprise agreements would likely receive the contribution on-top of their current pay. When compulsory superannuation was introduced in 1992 - in part to reduce government spending on the Age Pension - only one in 10 Australian retirees listed super as a source of income. Nine in 10 people between 30 and 50 now have super. Government spending on the Age Pension is projected to fall from 2.3 per cent of gross domestic product in 2020 to two per cent by 2062/63, despite a doubling of the over-65 population and a trebling of over-85s over the same period. However the super guarantee increase wouldn't help those who missed out on paid work for extended periods, Super Consumer Australia chief executive Xavier O'Halloran said. "(For) people who have caring responsibilities or who have been locked out of the unaffordable housing market ... increasing SG further won't address those inequalities," he told AAP. Mr O'Halloran said there was more that could be done to support people struggling in retirement, when a significant portion of their autumnal years' savings were made. "Right now, there are no minimum standards for retirement products like there are for MySuper," he said. "There is also no performance testing of retirement products, so super funds can still sell poor products."
