The 2016/17 ACT Budget will provide further support for Canberra businesses by lifting thepayroll tax threshold to $2 million.
This latest change means that any Canberra business that generates less than $2 million per year will be exempt from payroll tax. This means about 40 local businesses will no longer have to pay payroll tax. (These are businesses with payrolls of between the current threshold of $1.85m and the new threshold of $2.0m, who are currently paying the tax).
In addition, lifting the payroll tax threshold will give a $10,000 a year tax cut to every business with a payroll of over $2m. Since 2012, the total amount of tax the ACT Government has removed for a firm with a payroll over $2m is $34,250.
The ACT Government is committed to supporting small businesses by creating a fairer tax system that encourage growth, job creation and innovation.
The 2016/17 ACT Budget will be a job creating budget – building Canberra’s future by supporting the continued diversification of our economy.
Every single Canberra business has benefited from the Government’s tax reforms. Not only have we abolished insurance tax, but our moves to lift the payroll tax threshold from $1.5million in 2012 to $2 million in 2016/17 benefits all local businesses who all pay less payroll tax. Since 2012, around 150-200 local business pay no payroll tax thanks to these reforms.
We are also continuing with our red tape reduction agenda. Access Canberra, the Government’s one stop shop for supporting local businesses, regularly speaks to business owners about how the government can continue regulatory reform to reduce unnecessary burdens on them without compromising community safety.
- Statement ends -
Section: Andrew Barr, MLA | Media Releases