When Treasurer Dominic Perrottet hands down his second state budget on Tuesday, among the various measures to fund public services and build infrastructure, arguably none will do more to boost small business than finally easing the burden of payroll tax in NSW.
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The Chamber has campaigned hard to have the payroll tax threshold lifted from $750,000 (the second lowest threshold in the nation) to $1 million. A low payroll tax threshold creates a disincentive for small businesses to grow and employ extra staff, whilst already facing a range of cost pressures, including rising energy prices.
We welcome news over the weekend that the government will deliver this over the next four years as part of today’s budget. This means a business with an annual payroll of around $750,000 will be able to hire two extra young job seekers without being slugged by a tax penalty and extra administrative costs.
A great start to the important task of improving conditions for small businesses in NSW.
The budget should also address the transport infrastructure connecting the Illawarra to Greater Sydney. It is clear that these road and rail connections have not kept pace with the growth in traffic volumes, and are holding back our economic growth as well as frustrating 30,600 commuters who travel to Sydney each day, 80 percent of them by car.
In our transport connectivity report, released last month with the NRMA, we recommended that upgrading Picton Road to a four-lane separated highway, together with delivering the Mount Ousley Interchange and Widening Project, must occur by 2025 in order to address the delays that we estimate are costing us $500 million per year. In addition, the planned upgrade of the 80 km/h zone on the Princes Motorway southbound at Bulli Tops should be completed by 2028.
The announcement of Stage One of the F6 Extension – or SouthConnex – was a positive start to what is hopefully a significant investment in road and rail infrastructure for the Illawarra in coming budgets.
However, our report recommended delivery of Stages One, Two and Three, from Arncliffe to Loftus, by 2025 which will reduce travel time to Sydney by 27 minutes. If delivered in tandem with the proposed South West Illawarra Rail Link, we estimate this will boost the NSW economy by $740 million per annum.
Funding to commence these projects should be committed in this budget in order to meet these pressing deadlines.
The Chamber has also stressed the importance of investing more in trades and related training. Boosting investment in skills and training – particularly in the construction, hospitality and community service sectors – was a key component of the NSW Business Chamber’s Pre-Budget submission.
Again, we welcome the government’s pre-budget commitments to cover the cost of coursework for apprentices and ensure that 20 percent of jobs on new public infrastructure projects provide training opportunities. These measures will help address skills shortages that are hurting business across the Illawarra.
By supporting small business and investing in infrastructure and training, there is no doubt that Tuesday’s state budget is an opportunity for the NSW Government improve the productivity and economic capacity of our region.
Adam Zarth is the Executive Director of the Illawarra Business Chamber
