The Victorian Employers’ Chamber of Commerce and Industry is the latest group to call for payroll tax reduction to combat the nation’s increasing unemployment.
“Payroll tax is a tax on jobs and needs to be cut in the May budget”, says VECCI chief executive Wayne Kayler-Thomson.
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Victoria’s unemployment rate jumped from 4.8% in December 2008 to 5.6% in January 2009, and is now significantly higher than the national unemployment rate of 5.2%.
“The fact that Victoria’s budget remains relatively resilient and in surplus should provide room for payroll tax relief,” he says.
“The Federal Government should also be focused on supporting deeper payroll tax cuts nationwide as part of efforts to stimulate the economy.”
Yesterday the Australian Chamber of Commerce and Industry renewed calls for a cut and warned that unemployment could get worse than expected unless domestic policy takes the pressure off business.
“Reduce interest rates, start cutting payroll tax and significantly modify the new industrial relations laws,” said chief executive Peter Anderson.
“Unless this is done, the intended benefits of the recent stimulus package s will not be fully realised.”