❓ Hon George Cash questions the Treasurer regarding payroll tax reform, specifically the tax-free threshold for top bracket firms and discrepancies in tax cut calculations. The Treasurer's response clarifies the maximum benefit and explains the overall tax cut estimate.
AnsweredQoN 703Legislative Council
QuestionView source ↗
I refer the Treasurer to his answer to my question without notice 612 on 5 March and ask - (1) Will the Treasurer confirm that his payroll tax reform proposal involves the introduction of a $750 000 tax-free threshold for firms currently in the top payroll tax bracket? That would reduce the payroll tax burden for those firms by $45 000. (2) Will the Treasurer indicate how many firms currently in the top payroll tax bracket will benefit from the $45 000 payroll tax cut as a result of his proposed reforms? (3) Given that the Treasurer indicated there are some 2 700 firms in the top bracket, and a tax cut of $45 000 for each firm would mean a total tax cut of $121.5 million, how does he reconcile that sum with a net tax cut from the payroll tax reforms of only $7.8 million - as found in the review of state business taxes? Hon NICK GRIFFITHS
AnswerView source ↗
I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(1) Will the Treasurer confirm that his payroll tax reform proposal involves the introduction of a $750 000 tax-free threshold for firms currently in the top payroll tax bracket? That would reduce the payroll tax burden for those firms by $45 000. (2) Will the Treasurer indicate how many firms currently in the top payroll tax bracket will benefit from the $45 000 payroll tax cut as a result of his proposed reforms? (3) Given that the Treasurer indicated there are some 2 700 firms in the top bracket, and a tax cut of $45 000 for each firm would mean a total tax cut of $121.5 million, how does he reconcile that sum with a net tax cut from the payroll tax reforms of only $7.8 million - as found in the review of state business taxes? Hon NICK GRIFFITHS replied: I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(2) Will the Treasurer indicate how many firms currently in the top payroll tax bracket will benefit from the $45 000 payroll tax cut as a result of his proposed reforms? (3) Given that the Treasurer indicated there are some 2 700 firms in the top bracket, and a tax cut of $45 000 for each firm would mean a total tax cut of $121.5 million, how does he reconcile that sum with a net tax cut from the payroll tax reforms of only $7.8 million - as found in the review of state business taxes? Hon NICK GRIFFITHS replied: I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(3) Given that the Treasurer indicated there are some 2 700 firms in the top bracket, and a tax cut of $45 000 for each firm would mean a total tax cut of $121.5 million, how does he reconcile that sum with a net tax cut from the payroll tax reforms of only $7.8 million - as found in the review of state business taxes? Hon NICK GRIFFITHS replied: I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
Hon NICK GRIFFITHS replied: I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(1) Will the Treasurer confirm that his payroll tax reform proposal involves the introduction of a $750 000 tax-free threshold for firms currently in the top payroll tax bracket? That would reduce the payroll tax burden for those firms by $45 000. (2) Will the Treasurer indicate how many firms currently in the top payroll tax bracket will benefit from the $45 000 payroll tax cut as a result of his proposed reforms? (3) Given that the Treasurer indicated there are some 2 700 firms in the top bracket, and a tax cut of $45 000 for each firm would mean a total tax cut of $121.5 million, how does he reconcile that sum with a net tax cut from the payroll tax reforms of only $7.8 million - as found in the review of state business taxes? Hon NICK GRIFFITHS replied: I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(2) Will the Treasurer indicate how many firms currently in the top payroll tax bracket will benefit from the $45 000 payroll tax cut as a result of his proposed reforms? (3) Given that the Treasurer indicated there are some 2 700 firms in the top bracket, and a tax cut of $45 000 for each firm would mean a total tax cut of $121.5 million, how does he reconcile that sum with a net tax cut from the payroll tax reforms of only $7.8 million - as found in the review of state business taxes? Hon NICK GRIFFITHS replied: I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(3) Given that the Treasurer indicated there are some 2 700 firms in the top bracket, and a tax cut of $45 000 for each firm would mean a total tax cut of $121.5 million, how does he reconcile that sum with a net tax cut from the payroll tax reforms of only $7.8 million - as found in the review of state business taxes? Hon NICK GRIFFITHS replied: I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
Hon NICK GRIFFITHS replied: I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
I thank the honourable member for some notice of this question. The Treasurer has provided the following response - (1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(1)-(2) As indicated in my response to question without notice 612, there are approximately 2 700 employers paying payroll tax in the top tax bracket; that is, with an annual payroll greater than $5.625 million. These employers will receive a benefit from the exemption threshold of up to a maximum of $45 000. As advised earlier, the benefit will be lower for those employers who are members of a group or pay interstate wages. Available data does not indicate how many firms will benefit by the maximum of $45 000. (3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
(3) The total tax cut for employers in the top payroll tax bracket as a result of the introduction of the single marginal payroll tax rate scale is estimated to be about $20.5 million - an average of around $16 700 each.
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