Businesses in South Australia are celebrating after South Australian Treasurer Kevin Foley announced payroll tax will be cut from 5% to 4.95% and the threshold increased from $504,000 to $600,000.
The SA Government estimates the move will save businesses about $136 million a year from 2009-10. It is the second consecutive cut to payroll tax.
Foley says South Australia could not afford to slip behind states like NSW and Queensland, which cut payroll tax in their budgets earlier this week. “It is vitally important that our state remains competitive.”
While Foley did not cut land tax or stamp duty, he did abolish a stamp duty concession for first home buyers, replacing it with a $4000 first-home bonus for purchases of up to $400,000.
The SA Government also announced it will spend $10.3 billion on infrastructure over the next four years, including $1.5 billion on a desalination plant and $2 billion on public transport initiatives.
Economic growth in South Australia is expected to fall from 3.75% to 2.75% next year.
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