New analysis of Australian Bureau of Statistics data by Business NSW shows more than 3,000
businesses have left NSW over the past three years, with rising operating costs and
uncompetitive tax settings driving many to relocate. During the same period, Queensland
attracted more than 4,000 businesses.
Mr Dwyer said the figures should serve as a wake up call for the NSW Government. This
comes on top of all the other financial burdens facing small businesses including increasing
insurance premiums, rent hikes, interest rates, staffing costs and increasing electricity charges.
"Businesses are choosing to invest elsewhere because the cost of operating in NSW has
become too high," Mr Dwyer said.
"The NSW Liberals and Nationals have a clear plan to make our state the most competitive
place in Australia to do business."
The NSW Opposition has proposed a package of payroll tax reforms that would:
- Increase the payroll tax threshold from $1.2 million to $1.5 million.
- Reduce the payroll tax rate from 5.45 per cent to 4.75 per cent for businesses with a total Australian payroll below $10 million.
- Index payroll tax thresholds to the Consumer Price Index (CPI) to prevent bracket creep.
Mr Dwyer said the reforms would remove around 4,000 businesses from the payroll tax system
altogether, while delivering Australia's lowest payroll tax rate to a further 25,000 businesses.
"These reforms will encourage businesses to invest, employ more people and grow in NSW
instead of looking interstate for better conditions," he said.
The proposed reforms have been welcomed by key industry groups, including Business NSW,
the Pharmacy Guild, the Housing Industry Association, the Australian Industry Group and the
Motor Trades Association of Australia.
Opposition Leader Kellie Sloane said another 6,200 businesses permanently closed their
doors last year alone and NSW had gone from top to bottom of all states on economic output.
“Businesses are voting with their feet because NSW has become too expensive to invest,
employ and grow,” Ms Sloane said.
"NSW needs tax settings that reward growth, investment and job creation, which is exactly
what our payroll tax reforms are designed to deliver.”
NSW Nationals Leader and Shadow Minister for Small Business Gurmesh Singh said
businesses should be rewarded for hiring and encouraged to expand.
“When businesses are leaving the state in record numbers, that's not just a statistic, it's a
warning that NSW needs reforms and businesses need us to back them.”
“Businesses are leaving, confidence is at record lows and Labor still has no plan to make NSW
competitive again, but the NSW Liberals and Nationals do.”
