❓ Mr. Mubarakai asks how the McGowan government balances economic stimulus with sound fiscal management regarding payroll tax relief for small and medium businesses. The Treasurer highlights the government's financial management enabling tax cuts, TAFE fee reductions, and infrastructure investment.
AnsweredQoN 1003Legislative Assembly
QuestionView source ↗
PAYROLL TAX
1003. Mr Y. MUBARAKAI to the Treasurer:
My question is to the outstanding
Treasurer.
I refer to the announcement today of
payroll tax relief for small and medium-sized businesses right across Western Australia. How has the McGowan Labor
government managed to balance economic stimulus with sound fiscal
management?
1003. Mr Y. MUBARAKAI to the Treasurer:
My question is to the outstanding
Treasurer.
I refer to the announcement today of
payroll tax relief for small and medium-sized businesses right across Western Australia. How has the McGowan Labor
government managed to balance economic stimulus with sound fiscal
management?
AnswerView source ↗
Before I answer that very good
question from the member for Jandakot, on behalf of the member for Fremantle, the Minister for Community Services, I acknowledge
Mattie Turnbull and her town planning students from Curtin University.
I was delighted today to join the
Premier and my doppelganger, apparently, the Minister for Small Business, and
the member for Mount Lawley at Lot Six Zero, a wonderful cafe in Yokine. About
three months ago, the owner of that cafe, Glen Pope, grabbed me at a community
cabinet event at the Yokine Districts Bowling Club because he wanted to talk
about payroll tax. We had a very good conversation around the payroll tax
threshold and the impact it was having on him—he has four cafes and, as
he said today, he would like to make it five—and the decisions he wanted to make to potentially expand
and take on more employees. I was delighted to be there today to announce the policy that the Premier has already
outlined—the single largest increase ever in the payroll tax threshold . It was a point that Mr Pope, the owner of
that business, made better than anyone, I think, when he said that it is not just about employing new people, but about the fact that he can now invest in
his business—that is, put that money into
plant and equipment, and technology, for example, to ensure that his businesses
around Western Australia can compete and be more productive and
efficient. That $170 million will go back into the pockets of small to medium-sized
businesses. They are the best placed to decide how to spend that money, and I expect
very good outcomes. Seventy per cent of all
payroll tax paying businesses will get a tax cut. I think that is a very good
outcome.
If members want to know why we have
been able to do that and why we have been able to cut TAFE fees, provide stamp
duty relief for off-the-plan apartments and spend nearly $300 million on school
and hospital maintenance, it is because we have the finances under control.
That is the simple reality. I note that the chief executive officer of the
Chamber of Commerce and Industry on ABC radio today made the point that —
� there's no doubt that this
decision —
He is referring to the payroll tax
decision —
comes on the back of significant achievement
made in relation to fixing those finances.
The reality is that if we are
running debt at $40 billion and running the largest operating deficits in the
history of the state, we will not get the opportunity or have the capacity to
make these decisions to support businesses and the economy in WA. Importantly,
that is something that we are continuing to be focused on, member for Jandakot.
Mr Rodwell, in reflecting on future challenges that the state may face, went on
to say —
� we think the current ––
The emphasis is on ''current'',
Mr Speaker ––
emphasis
on the strong financial management while prioritising regulatory form and
stronger infrastructure and business investment is the right one.
I
think Mr Rodwell is right. I think he has also identified the reality this this
government takes the finances seriously . If we take the finances
seriously, we can run operating surpluses, confidence returns, businesses
invest and the government has the capacity to invest in those businesses and
invest in those Western Australians who have skin in the game and take risks
with their capital to start and grow their own businesses. It is a great
decision and one that I think has broad support.
question from the member for Jandakot, on behalf of the member for Fremantle, the Minister for Community Services, I acknowledge
Mattie Turnbull and her town planning students from Curtin University.
I was delighted today to join the
Premier and my doppelganger, apparently, the Minister for Small Business, and
the member for Mount Lawley at Lot Six Zero, a wonderful cafe in Yokine. About
three months ago, the owner of that cafe, Glen Pope, grabbed me at a community
cabinet event at the Yokine Districts Bowling Club because he wanted to talk
about payroll tax. We had a very good conversation around the payroll tax
threshold and the impact it was having on him—he has four cafes and, as
he said today, he would like to make it five—and the decisions he wanted to make to potentially expand
and take on more employees. I was delighted to be there today to announce the policy that the Premier has already
outlined—the single largest increase ever in the payroll tax threshold . It was a point that Mr Pope, the owner of
that business, made better than anyone, I think, when he said that it is not just about employing new people, but about the fact that he can now invest in
his business—that is, put that money into
plant and equipment, and technology, for example, to ensure that his businesses
around Western Australia can compete and be more productive and
efficient. That $170 million will go back into the pockets of small to medium-sized
businesses. They are the best placed to decide how to spend that money, and I expect
very good outcomes. Seventy per cent of all
payroll tax paying businesses will get a tax cut. I think that is a very good
outcome.
If members want to know why we have
been able to do that and why we have been able to cut TAFE fees, provide stamp
duty relief for off-the-plan apartments and spend nearly $300 million on school
and hospital maintenance, it is because we have the finances under control.
That is the simple reality. I note that the chief executive officer of the
Chamber of Commerce and Industry on ABC radio today made the point that —
� there's no doubt that this
decision —
He is referring to the payroll tax
decision —
comes on the back of significant achievement
made in relation to fixing those finances.
The reality is that if we are
running debt at $40 billion and running the largest operating deficits in the
history of the state, we will not get the opportunity or have the capacity to
make these decisions to support businesses and the economy in WA. Importantly,
that is something that we are continuing to be focused on, member for Jandakot.
Mr Rodwell, in reflecting on future challenges that the state may face, went on
to say —
� we think the current ––
The emphasis is on ''current'',
Mr Speaker ––
emphasis
on the strong financial management while prioritising regulatory form and
stronger infrastructure and business investment is the right one.
I
think Mr Rodwell is right. I think he has also identified the reality this this
government takes the finances seriously . If we take the finances
seriously, we can run operating surpluses, confidence returns, businesses
invest and the government has the capacity to invest in those businesses and
invest in those Western Australians who have skin in the game and take risks
with their capital to start and grow their own businesses. It is a great
decision and one that I think has broad support.
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