4th June 2015
South Australia’s peak business group, Business SA has called on the Federal Government to increase GST and with the extra revenue raised being used to abolish State payroll tax.
In its submission to the Federal Government Business SA has called on Canberra to show real political courage and achieve meaningful taxation reform. As part of its submission the leading business lobby group in South Australia has also suggested that the GST should be expanded to improve on the simplicity of the GST.
The submission says: “Payroll tax is limiting the expansion of businesses, particularly those below but approaching the tax free threshold, and does actually prevent job creation by small business.”
“If the long-run incidence of payroll tax is absorbed by employees through reduced wages and by consumers through increased prices, logic suggests the long-run effect of replacing payroll tax with an increased GST should be to balance employee welfare through higher wages offsetting increased consumer prices,” it says.
