The Courier-Mail’s terrific “Go Queensland” campaign has today moved on to the issues of payroll tax and penalty rates, both of which I covered in my paper for the Jobs Growth Summit last week (see related post). I am quoted today in a (pay-walled) Courier-Mail article covering CCIQ’s case for an increase in the level of payroll, the threshold, above which businesses are liable to pay payroll tax, from $1.1 million to $1.6 million, so many more small and medium-sized businesses are exempt. The Courier-Mail reports (in Payroll tax is ‘discouraging jobs’, according to CCIQ):
Gene Tunny, principal of Brisbane-based Adept Economics, said he would like to see payroll tax scrapped.
“It’s a pretty bad tax which impacts both the employer by eating into profits and the employee through a lower take-home pay or fewer jobs.’’
“It has a pernicious impact. But I realise that it would be politically unpalatable to get rid of it given the billions of dollars it raises.
“What we should ultimately do is increase the GST which is a reasonably efficient tax and do away with things like payroll tax and stamp duty.’’
In the meantime, he said lifting the threshold ‘‘strikes a balance between the economics and the politics’’.
The Courier-Mail also reports (in Lower penalty rates could bring jobs boom) on research by industry bodies Restaurant and Catering Australia and CCIQ which found aligning Saturday and Sunday penalty rates would result in a large increase in the number of businesses opening on Sundays and a related increase in working hours and jobs.