Supporting Business

The Nationals WA have criticised the Cook Labor Government for worsening the housing crisis and increasing
the cost of doing business by ignoring industry calls for crucial reforms to stamp duty and payroll tax.

Leader of The Nationals WA, Shane Love MLA, said the Labor Government is failing Western Australians by
not acting on reforms to improve housing affordability and help small and medium businesses.

“The Nationals are the only Party with a clear plan to help first home buyers and small businesses ahead of the
2025 State election,” Mr Love said.

“While the Cook Labor Government has the resources and the ability to act on these critical reforms, it has
instead chosen to delay and deflect.

“Just last week, Treasurer Rita Saffioti claimed all options were on the table to address housing affordability,
only to backtrack the next day, calling stamp duty reform ‘too difficult.’

“This is a slap in the face to first home buyers struggling to enter the property market and desperate for
assistance from the State Government.”

The Real Estate Institute of WA (REIWA) recently announcing its State Election Platform, which calls for an
increase to the thresholds for both taxes.

“The peak body for WA’s real estate sector has essentially backed in The Nationals’ platform, acknowledging
that it’s never been harder for first home buyers to get a foothold in the property market,” Mr Love said.

“With Perth’s median house price hitting a record $700,000 this week, it’s time for meaningful action on
housing affordability, yet all this Labor Government delivers are excuses.”

REIWA’s platform calls for a significant increase in stamp duty exemptions for first home buyers to reflect the
rising cost of housing in WA.

“REIWA has rightly pointed out that existing thresholds are becoming irrelevant as property prices continue to
soar, and helping WA families buy their own home will also free up desperately needed stock in our
constrained rental market,” Mr Love said.

“That’s why the Nationals in Government will abolish stamp duty for first home buyers. This policy is expected
to help up to 20,000 WA households over the next four years, providing significant savings for first home
buyers across the State.”

REIWA has also joined with the Chamber of Commerce and Industry WA in calling for the payroll tax threshold
to be lifted to support small and medium businesses.

“The Nationals WA are committed to lifting the payroll tax threshold from $1 million to $1.3 million, a move
which will support 11,000 businesses, create thousands of jobs, and make WA a better place to do business.

“More than two-thirds of WA businesses have identified payroll tax as their highest priority, yet Labor is doing
nothing to address the rising cost of doing business in WA,” Mr Love said.

The Nationals WA will lift the payroll tax threshold and reduce the tax rate for small and medium businesses in a move that will support over 11,000 businesses and boost investment and employment across Western Australia.

Leader of The Nationals WA Shane Love MLA said the move will help WA’s small and medium-sized businesses manage the rising cost of doing business.

“The Nationals WA in Government will lift the payroll tax threshold from $1 million to $1.3 million,” Mr Love said.

“We will also introduce a 15 per cent tax rebate for businesses with taxable wages below $4 million, tapering off to businesses at $7.5 million.”

These measures are anticipated to benefit around 11,400 businesses in WA with taxable wages between $1 million and $7.5 million.

“The Nationals WA are proud to support WA’s business community, who have sent a clear message that it’s time for payroll tax reform after years of increasing costs and decreasing confidence,” Mr Love said.

The move follows recommendations put forward by the Chamber of Commerce and Industry WA (CCIWA) in support of payroll tax reform, with modelling showing WA businesses pay more in payroll tax on average than anywhere else in Australia.

“A business paying $3 million in wages in WA would be slugged around $126,000 in payroll tax each year,” Mr Love said.

“A similar sized business in New South Wales would pay just $98,000, and businesses in Queensland, Tasmania and the ACT would pay even less.

“Under WA’s payroll tax arrangements, businesses in WA have less capacity to increase employment, invest in the day-to-day running of their business, or expand their operations compared to those in other States,” Mr Love said.

“This places WA at a significant disadvantage given the cost of doing business in a global economy. It also also makes it harder to attract new businesses to WA, who see our costly taxes as a disincentive to do business here.”

The Nationals WA payroll tax reform has a predicted cost of $292 million per year, but is predicted to generate an economic return of over $850 million annually.

“These costs can easily be accommodated by the GST windfall and will deliver a significant net return to WA’s economy through increased productivity, investment and employment.”

Mr Love said the proposal was anticipated to create around 3,500 direct jobs and impact total employment by up to 7,000 FTE jobs.

“More than two-thirds of WA businesses have identified reforming payroll tax as their highest priority, and The Nationals WA are listening and delivering,” Mr Love said.

“The Nationals WA understand that backing our business community is backing the future of our State.”