NEW changes to payroll tax are being offered by the Liberal party in a pre-election bid to win over small businesses like Lake Street cafe owner John Vallini.
He’s run Tarts cafe for 10 years and says small business is very sensitive to fluctuations in the economy.
He employs a half dozen staff, but last year was his toughest yet, with the mining slump forcing him to slash staff hours.
“With last year’s downturn we’ve had to let [some staff] go and I’m working more here,” he says.
With a couple weeks till the polls, the state Liberals are offering small businesses cuts to payroll tax, upping the threshold from $850,000 to $900,000 from January 1.
“I think it’s good news for small business,” says Liberal Perth MP Eleni Evangel.
“We should do anything we can do to reduce red tape and assist small business, they’re the largest employee’s in the country.”
The plan’s won praise from the WA chamber of commerce and industry for bringing in new jobs for ”mum and dad businesses”, but Labor shadow treasurer Ben Wyatt called it a “desperate” move.
by DAVID BELL