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Media Release

Payroll tax relief should be a State Budget priority

20 October 2020

Payroll tax relief should be a State Budget priority 

The Hunter Business Chamber and its affiliate Business NSW (BNSW) are calling on the NSW Government to introduce a payroll tax rebate in the forthcoming NSW Budget to stimulate business hiring and boost jobs growth. 

In its pre-Budget submission to NSW Treasurer Dominic Perrottet, BNSW is proposing the introduction of an automatic payroll tax rebate, based on taxable payrolls recorded during the COVID-19 period. 

“The Federal Budget rightly supported a business-led jobs recovery and businesses will now be looking for similar support in the form of payroll tax relief in the State Budget on 17 November,” Hunter Business Chamber CEO Bob Hawes said.  

“But it is inconsistent for the Federal Government to provide incentives for businesses to hire staff while the NSW Government taxes those newly created jobs. 

“We believe that if a business is contributing to the state’s economic recovery by employing more staff, extending workers’ hours or increasing pay rates, they should not be penalised by having to pay more payroll tax.” 

Mr Hawes said the renewed push for payroll relief was supported by new data from BNSW members showing that many businesses believe they will be at medium or high risk when support measures end. 

“We know that governments do not have a bottomless pit of money, so they need to be looking at ways to make it easier for businesses to take on job seekers. 

“Importantly, a payroll tax rebate could flow automatically to employers without them having to apply, complementing the Federal Government’s jobs push. 

“We’re pleased that many of the policy recommendations in our COVID-19 recovery plan Back on track, released in July, have since been announced to support the state’s recovery.  

“But more needs to be done to reduce the economic impact by making some risk-based changes to current restrictions. 

“Business NSW has used its pre-budget submission to call on the Government to revisit the one person per four-square metre rule, as well as rethink specific restrictions on types of venues and events.  

“The relaxation of restrictions, supported by reliable and robust procedures like COVID Safe plans, will help improve consumer confidence to visit venues and events.” 


Amy De Lore
Policy and Public Affairs Manager 
P: 02 9466 5665
M: 0419 218 830


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