The NSW Business Chamber’s most recent survey reveals that almost 40% of small and medium businesses in NSW believe that conditions will decline in the next three months, according to Shadow Minister for Business Don Page.
The survey also shows that one quarter of small businesses believe that the number of employees employed and the hours worked will decline in the next three months.
“The survey stated that payroll tax is a disincentive to retaining staff,” Mr Page said.
“This survey confirms the NSW Opposition’s concerns that the NSW Labor Government must cut payroll tax immediately to stimulate the NSW economy and protect jobs.
“At a time when NSW is losing 360 jobs a day, it is disgraceful that payroll tax (a tax on jobs) is the biggest single State tax under this NSW Labor Government.
“This survey is the latest of a series of indicators which highlight the need for the NSW Government to be much more proactive in supporting our small business sector.”
Mr Page said recently released Reserve Bank figures showed that NSW businesses are falling behind in their mortgage repayments much faster than home owners.
The figures also showed that NSW has 56% of the wind-up applications and liquidations, more than the rest of the country combined.
ABS figures released last month showed that 22,000 people left NSW last year, most of them going to Queensland.
“These statistics in relation to small-business failures highlight the need for payroll tax cuts for NSW to be competitive, taxation-wise, with other States,” Mr Page said.
“The NSW Labor Government must take urgent action to assist small and medium-sized businesses and quell the massive job losses that are occurring under their watch.
“The State Coalition recognises the importance of small and medium-sized businesses and has already committed to a 15% reduction in payroll tax, making NSW tax regime competitive with other States, and cutting red tape.
“If the NSW Labor Government is serious about protecting jobs and stimulating the NSW economy, they must significantly cut payroll tax and red tape.”