Sign the petition
One thing annoys entrepreneurs more than anything else – payroll tax. It is an abhorrent tax. It is a tax on success, a tax on jobs, on people's mobility and on people's aspirations.
Here at SmartCompany we’ve decided to do something about it. We’ve started a petition against payroll tax that we will present to every state and territory government – it’s another way we will be keeping pressure on politicians to cut this terrible tax.
Now we want your support:
No Payroll Tax Petition
What is Payroll tax?
The Australian Taxation Office states:
"Payroll tax is a tax on the wages paid by employers. Employers are liable for payroll tax when their total Australian wages exceed a certain level called the ‘exemption threshold’. Exemption thresholds vary between states.
Payroll tax should not be confused with the pay as you go (PAYG) withholding system. Payroll tax is payable to the state by an employer, based on the total wages paid to all employees.
Under the PAYG withholding system, amounts are generally withheld from payments made to an individual and sent to the Tax Office to offset the individual’s end of year income tax liability.
For more information on PAYG withholding see Pay as you go withholding.
Certain organisations may be exempt from payroll tax provided specific conditions are satisfied. These organisations may include religious institutions, public benevolent institutions, public or non-profit hospitals, non-profit non-government schools and charitable organisations.
As requirements vary between states, employers should seek clarification from their local state/territory revenue office."
The nation’s payroll tax rates as they currently stand:
- South Australia: 5.25% on payroll above $504,000
- Western Australia: 5.5% on payroll above $750,000
- Queensland: 4.75% on payroll above $1 million
- Tasmania: 6.1% on payroll above $1 million
- New South Wales: 5.75% on payroll above $623,000
- Victoria: 4.95% on payroll above $550,000
Who has signed the petition?
Read more about payroll tax
Tell us what you think at nopayrolltax@smartcompany.com.au
What do Australian businesses think of payroll tax?
I'm about to employ another person but it was a margin call that I did due to the tax imposed on the company. We're only small and every dollar counts, this is just something else we have to work that bit harder and longer to pay.
JamieBurmeister, Adapt Solutions.
It's a tax that inhibits growth. I would much prefer to invest payroll tax contributions to employment training schemes.
ColinBoyce, e-Secure Pty Ltd.
It goes against small enterprise and employment.
MichelleScoble, Walker & Scoble.
it is a disincentive to employers to employ people and contributes to the view that employees are expensive and a cost to the business.
LeanneGordon, Changing Futures.
It acts as a disincentive to growth and innovation in an industry that is very much of the 21st Century - digital media. Small companies are reluctant to add staff (usually highly skilled, technical types) if it means an extra 6% tax on the basic cost of their employment
JohnButterworth, Australian Interactive Media Industry Association.
It discourages people to go after their dreams...
DanKennedy, .
I BELIEVE IT IS AN DETERANT TO BUSINESS GROWTH AND IT IS A BURDEN ON BUSINESS
TROYTOWNLEY, HTA ADVISORY.
It is a tax on employment that is impairing our ability to compete on the world stage & stopping us from employing more people to help with our environmental innitiatives.
RobertCameron, Rockcote Pty. Ltd..
It is ridiculous
JessicaOddy, ANZ.
it penalises our organisation for growing and employing people. Without payoll tax we would be able to employ 2 more people which would in turn help us grow even more. It is counter productive and was supposed to be abolished when GST came in. We can only dream....
SteveFanale, MassMedia Studios.
I teach Business Studies, and also run a micro-business with my husband. We both see this as a totally un-necessary impost on business - which is already paying its way with all other forms of taxation.
LorraineNitschke, Alert Test & Tag.
I would like to employ more people
NicholasChristian, Nick Christian & Associates.
It discourages me from hiring people and paying them fairly
ByronRaff, moviepartner.com.au.
Every time I take someone off the government unemployment list or grow my business I get taxed for our success. Mind numbing!
TimLe Roy, Scottish Pacific Benchmark Group.
It is inequitable, a disincentive to employ people, and has a non-justifiable basis as a tax
DavidFriend, Agvil Pty Ltd.
I can spend the money on more staff and growing my business
CraigPorte, Icon Global.
It is a tax on job creation!
RafaelMerino, Living Energy Australia Pty Ltd.
It stops us from employing more people due to the additional cost on top of the actual salary.
SonjaOsborne, Alliance e-finance Pty Limited.
I want to grow my business and employ staff. I dont want to be paying a tax on top of wages which should be helping the economy and we get penalised. The staff dont see this cost and expect higher wages which means the smaller business struggle keeping good staff which go to large business who can afford it Thank you Mark
MarkPace, Sterling IT.
It is tax on tax on tax. Employers should be rewarded for creating jobs not penalised.
LindaSimonsen, FuturePeople Recruitment.
It is a blight on employment, and takes vital working capital away from small growing companies like mine just when we need it to support our growth.
DavidBlaymires, Instinct Systems Pty Ltd.
Why should a company be penalised for creating jobs? Also, why should a company that employs staff be taxed more than a company that sells widgets but does not employ as many people?
TimJohnston, Books Onsite.
Imposing a tax like this inhibits any desire to grow a business through employing addition staff.
DavidMichell, The Protectors Insurance Brokers Pty Ltd.
GST was supposed to lead to its abolishment Its a tax that cuts in too low, sure keep it for corporations but not sme
AdrianTourle, Sydney Posters.
It's a regressive tax, it's on employment, it's an additional (unnecessary) administrative burden on employers, to my recollection this tax was to be eliminated or at least substantially scaled back with the introduction of GST 8 yrs ago in 2000
PaulClements, Clements Dunne & Bell Pty Ltd.
I believe this tax is unethical, unfair and that we shouldn't have to pay it if we are supplying other people with jobs.
JulianMcGoldrick, Heathmont Financial Services.
The most regressive tax imaginable. In these times of budgt surpluses this tax mechanism should be abolished.
JohnBattley, Globetrotter Corporate Travel.
It's anti-business It's anti-growth Everytime I think about hiring Payroll tax is a disincentive What happened with the GST ! wasn't it meant to mean the end of Payroll tax! I would gladly spend the payroll tax I spend on improving my business or hiring more staff The lastest NSW Payroll tax reduction indicated in the budget was a JOKE
DanielJohnson, APEX Insurance Brokers Pty Ltd.
It inhibits growth, is illogical & represents a penalty to employers
DavidMacMillan, M2 IT Pty Ltd.
It is unfair and a pain to administer.
MeganZuks, Emzed Bookkeeping Service.
It is a disincentive for successful businesses, is regressive, and does not take into account businesses profitability and their capacity to pay.
AlexanderDunn, Assetivity Pty Ltd.
It's regressive It is a tax on employment I could afford to hire another 3 part timers and build my business more
GrahameMurray, The Organic Market & Café.
acts as a discincentive to employ people
stanstavros, sbm stavros.
It is unfair that we are taxed at every level of government. Their should be a uniform system that allows business to flourish and grow not stifle and die because of over-blown tax bills.
KristieMellinh, Peachy Body Clinic.
I am a small company expanding into the SME category. One of the constraints on growth that really bothers me is that I am about to bump into the payroll tax threshold, which will be a significant disincentive to further growth.
BrynPears, Silly Yak Foods Pty Ltd.
I don't see why we should pay a tax to employ people. If the state governments were to stop payroll tax and the Commonwealth Gov't to reduce income taxes, then there would be more incentive for people to work.
GeorgeAinsley, Ainsley Agroforestry Oils & Fruits.
It's an unnecessary tax on jobs.
MariaDonovan, Sports Tips Australia Pty Ltd.
BrigitteErnatiana, SMCA.
its ridiculous
JoMartyn, .
this is a disincentive to employers to hire staff.
PamelaMorris, Total Metrics.
It penalizes growth by adding an expense that should already be covered by the additional tax paid by new employees.
AndrewVincent, Your Business Success.
it is a tax on growth and discourages us to grow our staff.
Sarahallen, appliance tagging services.
It discourages activity which is good for the environment.
DerekMcKinnon, Tailored Childcare Management.
Regressive tax, unecessary cost to business, anti growth tax, money for nothing, business does not receive benefits in any way from paying such a ridiculous tax.
EliaAndriotis, Botany Bay Timber Company.
It is an inequitus tax, it stifles growth, it is an impose on employing additional staff, it is irrelevant
TrevorBeckingham, Brisbane Spare Parts Pty. Ltd.
It's a disincentive to employing more staff, businesses should be encouraged by tax cuts to employ more staff, not penalized for it.
NathanWarnecke, ITRO.
It does not benefit the employee, rather adds another layer of cost & complexity for the small business owner.
JudithMaunder, SunGoddess.
It is a direct hinderance to small businesses growing.
GuyThornycroft, Prestwood Australia Pty Ltd.
It acts a disincentive to employing new staff and makes getting ahead in business that bit harder.
GregMuller, Bullseye.
It is a tax that effects companies regardless of there profitability. We are a technology company and had this burden at a time when we needed every cent for R&D. It is plain stupid to penalize the people trying to make this a SMART country. Also, the PT threshold hasnt changed much at all since the early 90's. But salaries have icreased significantly so this is the worst example of bracket creep.
BillWithers, acQuire Technology Solutions Pty Ltd.
It's a blatant revenue raising tax and does nothing but penalise successful businesses who take the personal and financial risks to be successful. With the current demand by staff for increased wages, it places a greater unnecessary financial stressor on my business. Payroll tax makes a mockery of success and entrepreneurial spirit. Whilst there has been a reduction in payroll tax in SA, it's been minimal and doesn't even come close to what's occurred in QLD.
TeutaBennett, NetCraft Australia.
Governments allow depreciation on assets such as computers and industrial machines which can & do replace people yet persist with a tax on the employment people
EdwardLangfield, .
It really doesn't make sense! hiring more staff already contribute more income tax, why add another 6%?
BobCheng, EmailCash Marketing Pty Ltd.
It discoverage small to medium business to grow and employ additional people to avoid going over the threshold and is extremely time consuming, particularly for national operators who need to keep up with all the different states rules.
MimiStoffels, Neway Holdings.
Because it restricts growth in employing more personal to grow the business
ThomasRussell, Transport Industry Driver Education.
It reduces growrh and is difficult to administer for a recruitment company.
LarissaRobertson, Spectrum Employment Services Coop Ltd.
It is yet another tax that has absolutely no reason and contributes to costs and paperwork.
Brendanshaw, Jim Fencing.
This is an insidious tax in which an employer is 'taxed' for employing someone in an effort to reduce unemployed numbers and increase the economic status of the country.
KayBrown, Brown's Grazing Co.
As an accountant I see how it affects my employer clients. I see employers thinking twice about employing extra staff due to the extra burdens they place on their business, particularly when they are near the threshold.
RosemaryHancock, Lachlan Rendall & Associates.
It is anti-employment and detrimental to competition and productivity.
DallasWatt, Whitson Watt Accounting.
I want to see an end to Payroll Tax. Potentially, our company can make a profit and lose all the profit in payroll tax. We can employ 10 people, pay $1million in wages, and pay $24 000 in payroll tax, and earn Zero profit. Where is the logic??When wages represent 70% of my cost, a 6% payroll tax represents a 4% increase in costs when I start to exceed the payroll tax limit
DavidMaher, Celebrity Speakers.
Its anti growth and employment and gives no consideration to the profiatbility of the oganisation.
NigelWatson, University Books Pty Ltd.
I see payroll tax as one of the stumbling blocks to business expansion. This tax inhibits an entrepreneur who is medium conservative in nature. The objective of the govt should be to encourage people who fall into this bracket ( which I think are many) to take more risks ( which will be well calculated and proportionally more successful).
AnjanaRames, .
I can't believe that there is a tax on employing people.
NikkiBraybrook, Big Fish Creative Recruitment.
things are tight enough for my employer.
DerekBegg, Potter Farrelly & Associates.
It is not right to penalise employers for creating and/or increasing employment. Increased employment will generate more PAYE and secondary taxes for the federal and state governments. This tax takes away any incentive to expand and manufacture in Australia and is a contibutory cause of why Manufacturing is dying in Australia and why more and more businesses are moving offshore.
JorgeMendes, Evakool Ice Boxes.
It is a penalty and deterrant when hiring staff. It is anti-employment. SMEs often pay more in payroll tax than they pay to any one employee on their payroll.
FrancesQuaglia, Eden Technology Pty Ltd.
It discourages business growth, and therefore job growth.
VicFeferberg, Fefer Business Investment Pty. Ltd..
It is a direct hinderance to growth.
StephenMacMillan, Insyston.
Itis a barrier to growth.
DanielSmith, Business SA.
It is a major barrier to helping small businesses grow - and create more jobs. It is actually a disincentive to company development - which is not good for the economy of the state of NSW.
LauraProphet, Prophet Analytics.
The revenue is not required by government
MichaelHoare, Personal.
I want to employ more people but I look for ways to outsource because payroll tax is a disincentive. Payroll tax is already costing me the equivalent of 1 extra person and although we need more staff, I am outsourcing overseas because of the costs.
WayneBurgan, Cashflow Manager Pty Ltd.
It's a disincentive for business to hire more people and it is without merit.
AlanGalstians, Natskin Holdings Pty Ltd.
it is nothing but state government theft and the GST payments were meant to replace these taxes and stamp duties
PaulSharkey, Intralink.
It is an abhorrent tax. It is a tax on success, a tax on jobs, on people's mobility and on people's aspirations.
MichaelCullen, Biz 2 Biz Coaching Pty Ltd.
Simply because a tax on employing people makes absolutely no sense whatsoever. It discourages R&D, innovation and makes Australian companies uncompetitive. I thought one of the challenges Australia faced was capacity constraints. Why tax companies for luring new people into the workforce? The question is: Why have payroll tax? In addition is the additional compliance and governance expense for all Australian tax payers.
DavidTrewern, DTDigital / Ogilvy Interactive.
I am in the wholesale food business in WA. We supply fresh food, work on ever decreaing margins and our wages have gone through the roof. We cannot increase our prices like the mining companies so with the WA governments attitute we are the forgotten SME's. Ripper has not a clue as to what pressures many real business's are under!
Paulvan Straalen, Centra Fine Foods.
Small business needs to be supported for growth, not penalised.
ChrisMarshall, Blue Apache.
It is a tax against the creation of jobs and growing your business.
WernerDrescher.
It is an unnesscessary tax, an additional burden to companys that really serves no further purpose then a random governement revenue generator
MattYuryevich, Quality Inn Railway Hotel.
I could not put it any better than you: "payroll tax. It is an abhorrent tax. It is a tax on success, a tax on jobs, on people's mobility and on people's aspirations." the reduction is an insult! Lets abolish it now!
DerekJones, D&M Research P/L.
SME's should NOT be punished for their success!
SarahPurches, Inter Staffing Services.
This is a pernicious tax on employing people. It has no merit whatsoever and is merely a revenue raising execise. The unfortunate side effect is that fewer people are employed as a result.
MichaelMcTiernan, Workforce XS.
Payroll tax penalises service companies more significantly than any other business. Because our greatest cost is people we are disproportionately paying tax. I thought Labor was about the people. This punishes business for hiring people. Profit has nothing to do with it just total payroll costs. It is just stupid,without any logic and a deterent to investing in people over automation.
PeterMacMillan, Alliance e-finance Pty Limited.
it is a direct dis-incentive to employ more staff - where's the sense in that?
JulianBickersteth, International Conservation Services Pty Ltd.
A ridiculous tax on employing people.
IanNicholls, The Bakers Mate.
Middle Wage Australia & Small business suffer as governments waste our hard earned dollars
LoreenaWalsh, .
It is an absurdly based tax that taxes businesses based on their costs not their profits. It is a disincentive to employ workers who would, if employed, pay income tax.
AdamJohnson, .
the government is taxing the employer on paying the wages, and the employee on receiving them. It is completely unjustifiable double-dipping and is abhorrent.
HelenConway, The Inside Trip.
It penalises employers for growing their businesses & providing further employment opportunities.
ChrisHinds, Chris Hinds Team - Ray White.
In pure fact, I can not see how the governement can claim that they are encouraging growth when they have a tax that kicks in once you have started growing and employing more people. Where is the logic?
BenHumphreys, Humphreys Reynolds Perkins Pty Ltd.
it is a bullshit tax. Why tax employers who employ people to grow the economy.
MartinLazarevic, .
all adds to the total cost...employees miss out...bonuses and extra super etc all reduced by the amount of the payroll tax impost!
WendyBoundy, .
It's a tax on success on growth, it inhibits growth and it's un-Australian.
AndrewDuncan, ProcureNet Central.
Its an unnecessary and unsupportable tax which burdens innovation and growth.
JamesPryor, Observant Pty Lyd.
I employ 150 people and would like to employ more people but payroll tax stops me. There is no incentive. I receive no services for paying it yet the SRO refer to me as a CUSTOMER.
RicMartin, RMI.