The Rev Fred Nile, Leader of the Christian Democratic Party, has called on both Federal and State Governments to help ensure the jobs of struggling Mums and Dads around the country by lowering payroll tax by up to 20%. “A lot of Mums and Dads are struggling out there, the last thing they need is to lose their jobs. As legislators we must we do all that is within our means to ensure they can continue to work and provide for their families”, Rev Nile has stated. Rev Nile raised the issue during question time in the NSW Parliament.

Reverend the Hon. Fred Nile: I address my question to the Treasurer.

• Does he acknowledge that amidst the worldwide economic downturn, most businesses in Australia are suffering financial pressures and that that is placing significant pressure on the retention of staff?

• Does he acknowledge that, with a looming recession, the unemployment rate is expected to rise to 7.5 per cent by the end of the year?

• Does he acknowledge that a 20 per cent cut to payroll tax would inject $1.5 billion into the economy and help to secure Australian jobs, as recommended by Corin McCarthy, who is a financial adviser to Kevin Rudd, both in opposition and in government, and who was cited in the Australian yesterday?

• Will he approach his Federal counterpart and seek a means of having both Federal and State governments work together to reduce the cost of employing staff and reducing payroll tax by at least 20 per cent?

The Hon. Eric Roozendaal: I thank Reverend the Hon. Fred Nile for his question and for his interest in this matter. On 1 January this year, the Rees Government delivered the first of three planned cuts in payroll tax when the tax rate was reduced from 6 per cent to 5.75 per cent. We have budgeted to cut payroll tax further to 5.65 per cent next year, and to 5.5 per cent in 2011. It is worth remembering that the last time the Coalition held office, payroll tax in New South Wales was 7 per cent. The Government also recently undertook other payroll tax reforms.

The Hon. Catherine Cusack: Can you just remind us about the threshold?

The Hon. Eric Roozendaal: We will get to that. Recently the Government also undertook other payroll tax reforms to improve the competitiveness of New South Wales businesses. Last year the payroll tax threshold was increased to $623,000 and is now indexed annually based on movements in the Sydney consumer price index [CPI]. In 2006 the payroll tax incentive scheme was introduced, providing assistance to businesses that relocate to or expand in regions of New South Wales with higher-than-average unemployment and that are eligible for a payroll tax rebate. The rebate is worth up to $144,000 a year for the first three years, and a partial rebate is provided with a following two years.

The reduction in payroll tax rates and indexation of the tax-free threshold means that New South Wales businesses with payrolls of more than $1 million in 2008-09 will save approximately 20 per cent of their payroll tax bill once the program of tax cuts is fully implemented. That demonstrates this Government's commitment to supporting businesses in New South Wales. In response to the matter of working closely with the Federal Government, I inform the House that the New South Wales Government is working closely with the Federal Government to ensure that we provide as much relief as is possible to the people of New South Wales—in fact, to the people of Australia—by ensuring that we support the fiscal stimulus package announced by the Rudd Labor Government. The critical challenge for us is ensuring that we can deliver the dollars as soon as is possible to the New South Wales economy.

It is worth contrasting the decisions of the Federal Labor Government with the position of the Federal Liberal Opposition, which has a do-nothing approach. Incidentally, that position is reflected by its counterpart in New South Wales. Members opposite have opposed the stimulus package and support for spending money on social housing and education in New South Wales. They do not want money spent on education and social housing in this State.

We will work closely with the Federal Government to ensure that the fiscal stimulus package, combined with our record infrastructure spend—that is the New South Wales Government's contribution to stimulating the New South Wales economy—will ensure that we meet the challenges of the global financial crisis in the best possible way. It is interesting to note how members opposite gloat about the economic challenges facing the world. Seven of our ten major trading partners are already in recession, and the best effort of Barry O'Farrell and his cohorts opposite is simply to criticise the attempts by the Federal Government and the State Government to promote jobs and infrastructure in New South Wales and in the country.
 

For Media Interviews contact: Rev Fred Nile (02) 9230 2478 or 0418 619 731
Research Assistant: David Copeland (02) 9230 2978

 Christian Democratic Party, GPO Box 141, Sydney NSW 2001.
Email: admin@cdp.org.au Web: www.cdp.org.au  Tel: 1300 667 975