Julie Bishop says ‘no better time’ for payroll tax shake-up to stimulate WA’s COVID-19 economic recovery

Former foreign minister Julie Bishop has pushed for the scrapping of the State Government’s payroll tax, claiming abandoning it would help stimulate WA’s coronavirus economic recovery. Ms Bishop said she was perplexed why businesses continue to be slapped with further taxes for hiring people when all levels of Government have pursued jobs growth. “I've never understood a tax on employing people when we spend so much time and effort trying to create opportunities for employment —- then the State Government puts a tax on it,” Ms Bishop told The West Live podcast host Jenna Clarke. “I certainly hope there are more efficient State taxes. I grew up in a Federal Parliament back in 1998. “When we introduced the GST, the idea behind the GST was to be a broad-based consumption tax that replaced inefficient State taxes like payroll tax. “I'm hoping that there can be a focus on more efficient ways of generating revenue.” Chamber of Commerce and Industry WA chief economist Aaron Morey echoed those calls for a shake up to the taxation, stating that the State Government should focus on tangible policy reforms that help business and drive a competitive economy. “We look to those sort of those more ‘bottom up initiatives’ to help businesses to invest. So payroll tax which we know comes at the expense of jobs and cuts right across the economy,” he said. As revealed on the front page of The West Australian today, ahead of delivering his fourth State Budget Treasurer Ben Wyatt declared that WA has dodged a COVID-19 recession and boasts a stronger economy than anywhere in the nation — and potentially the world. “There's been a bit of discussion around the surplus and the like. I don't think that in and of itself, is a problem. I think what is important is that any spending is effectively targeted and used wisely,” Mr Morey said. “We don't want spending for spending sake but as I said there are some really helpful initiatives. “Like reducing the burden of payroll tax. That would cut right across the business community and create jobs and that's the sort of thing that we're kind of looking at. “How wisely is that money being spent rather than the specific sort of outcome when it comes to the operating balance.” In May, however, Premier Mark McGowan and Treasurer Ben Wyatt ruled out scrapping payroll tax and replacing stamp duty with an annual land tax — saying it was not on their immediate agenda. “You don’t want to get too ambitious in terms of these things. Clearly, if those taxes were abolished, other taxes have to be created to replace them,” Mr McGowan said at the time. Mr Morey also said that WA should be prepared to capitalise on the successful coronavirus response and market the State as a “clean” option for international students and tourism when borders are finally reopened.