Message To Politicians From Business: Taxes On Jobs Are Hurting
27 July 2010
The Australian Chamber of Commerce and Industry, Australia's largest and most representative business organisation, today released details of a national survey that reveals first signs of eroding support amongst employers for the compulsory superannuation payments system should the government unilaterally raise the employer levy from 9% to 12% of payroll.
ACCI's Chief Executive Peter Anderson said the ACCI survey also suggests that employers employ fewer Australians when national and State governments impose levies and taxes on hiring staff.
Since 2007, the percentage of businesses expressing major concern with the Superannuation Guarantee Charge has increased from 19.6% to 44% with the figure for small businesses increasing from 21.2% to 48%.
Armed with these Survey results ACCI calls on Julia Gillard and Tony Abbott to urgently find a basis to fund the proposed $23 billion per year (33% increase) in superannuation which employers will have to fund if the levy on payroll goes up to 12%, as well as commit to opening a dialogue with the States on the progressive abolition of payroll tax.
A total of 79% of all businesses have major or moderate concerns now with funding the superannuation levy, with total small business concern now at 80%.
Interestingly, 71% of employers report that an increase of superannuation guarantee charges from the current 9% to 12% would impact on their capacity to employ.
“This Survey forecasts a rocky road ahead for the next Australian Government to placate business concerns over the proposed 33% increase in the employer funded superannuation levy," Peter Anderson said.
Almost 75% of businesses are concerned about the current level of payroll tax, which is a direct tax on jobs. It is most concerning to medium sized businesses where a whopping 85% had major or moderate concerns. Medium businesses fall into payroll tax liability once they employ too many people to maintain a small business exemption.
“Even though payroll tax is a State tax, business owners expect the Commonwealth to take a leadership role in restructuring federal / State financial relations to enable taxes on jobs like payroll tax to be progressively reduced and then eliminated over time," Peter Anderson said.
ACCI's Pre-Election Survey was conducted in June and July 2010 amongst more than 1,100 businesses across the nation.