❓ A parliamentary question regarding proposed payroll tax reforms in Western Australia, focusing on the impact on businesses of different sizes and the revenue implications of the changes.
AnsweredQoN 634Legislative Council
QuestionView source ↗
I refer to the proposed payroll tax reforms. (1) Will the Treasurer confirm that under the reforms, some 2 900 businesses in the top payroll tax bracket would enjoy tax relief of $45 000 each? (2) Under the proposals, how much additional revenue would be drawn from smaller businesses incurring a higher payroll tax burden? (3) How will the Treasurer raise the additional payroll tax revenue that would produce the net revenue-neutral effect of the reforms, given that his proposal involves a $130 million tax cut to big business? Hon NICK GRIFFITHS
AnswerView source ↗
I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(1) Will the Treasurer confirm that under the reforms, some 2 900 businesses in the top payroll tax bracket would enjoy tax relief of $45 000 each? (2) Under the proposals, how much additional revenue would be drawn from smaller businesses incurring a higher payroll tax burden? (3) How will the Treasurer raise the additional payroll tax revenue that would produce the net revenue-neutral effect of the reforms, given that his proposal involves a $130 million tax cut to big business? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(2) Under the proposals, how much additional revenue would be drawn from smaller businesses incurring a higher payroll tax burden? (3) How will the Treasurer raise the additional payroll tax revenue that would produce the net revenue-neutral effect of the reforms, given that his proposal involves a $130 million tax cut to big business? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(3) How will the Treasurer raise the additional payroll tax revenue that would produce the net revenue-neutral effect of the reforms, given that his proposal involves a $130 million tax cut to big business? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(1) Will the Treasurer confirm that under the reforms, some 2 900 businesses in the top payroll tax bracket would enjoy tax relief of $45 000 each? (2) Under the proposals, how much additional revenue would be drawn from smaller businesses incurring a higher payroll tax burden? (3) How will the Treasurer raise the additional payroll tax revenue that would produce the net revenue-neutral effect of the reforms, given that his proposal involves a $130 million tax cut to big business? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(2) Under the proposals, how much additional revenue would be drawn from smaller businesses incurring a higher payroll tax burden? (3) How will the Treasurer raise the additional payroll tax revenue that would produce the net revenue-neutral effect of the reforms, given that his proposal involves a $130 million tax cut to big business? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(3) How will the Treasurer raise the additional payroll tax revenue that would produce the net revenue-neutral effect of the reforms, given that his proposal involves a $130 million tax cut to big business? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
I thank the member for some notice of this question. The responses are based on 2000-01 payroll tax data, which was used to prepare the review of state business taxes. More recent data is being processed. (1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(1) Approximately 2 700 employers pay payroll tax in the top tax bracket; that is, they have an annual payroll greater than $5.625 million. These employers will receive a benefit of up to $45 000, but the benefit will be lower for employers who are members of a group or pay interstate wages. (2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(2) Businesses with annual payrolls between $1.1 million and $4.8 million will pay higher payroll tax. It is estimated that $17.7 million will be raised from firms paying higher payroll tax in 2003-04. This compares with estimated total annual payroll tax revenue of over $1 billion. The revenue raised from firms paying higher payroll tax will be more than offset by the loss of revenue to firms paying lower payroll tax, including small businesses with payrolls below $1.1 million. The net benefit to employers of the proposed move to a single marginal rate is estimated to be around $7.8 million in 2003-04, which will be funded by extending the payroll tax base to include eligible termination payments. It should be noted that firms that pay higher payroll tax are likely to be beneficiaries of other measures proposed as part of streamlining Western Australia’s tax system. For example, the average benefit for employers paying the top rate of stamp duty on workers compensation insurance from the abolition of this stamp duty is estimated at around $2 667 a year. The proposed abolition of a number of other taxes will also benefit these employers. These employers will also benefit from the package as a whole through lower compliance costs, including from a simpler payroll tax regime. (3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
(3) The streamlining of Western Australia’s tax system package involves an estimated cost to revenue of $70.8 million over four years. This cost has already been factored into the forward estimates.
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