Andrew Broad (Mallee, National Party) Share this | Link to this | Hansard source

I rise to talk about payroll tax and how we need to find a better way of funding our state governments than continuing with payroll tax. The other day I met with a lot of business leaders right across my electorate. You get some really innovative ideas when you have a discussion with business leaders over glass of red wine, which was grown in the Mallee, and lunch. Those business leaders between them employed over 1,000 people in a small country town. Discussion was around payroll tax. Certainly it is an inhibitor to employing people.

A bakery owner, who employed 50 people, said that if he had an extra $100,000 he would put another business in a town and employ 10 people. That would be 10 people who would be participating, building houses and contributing to the economy. Once he pays out over $550,000 in wages in Victoria he hits the payroll tax threshold. I think we can do better. Part of the long-term discussion between states and the federal government should be how we can encourage businesses to employ people and encourage businesses in regional areas to employ people rather than have a tax regime that works as a disincentive. It is something we on both sides of the House should address.