SYDNEY: Following its decision to abandon plans for a controversial bank levy, the South Australian Government has announced that it will still press ahead with payroll tax cuts and a higher foreign investor surcharge.
The Government had proposed a levy of 0.015 percent per quarter on the liabilities of the four major banks, plus Macquarie. The upper house rejected the proposal by a majority of one, prompting the Government to announce on November 15 that it would set aside its Budget legislation and would not take the tax to the state election next year. It also said that it would reflect on Parliament’s decision before deciding what to do with other blocked Budget measures.
On November 16, the Government announced that it intends to deliver payroll tax relief to small businesses, equivalent to the scheme originally proposed in the Budget Measures Bill. It will also introduce legislation to establish a Foreign Investor Surcharge, and will increase the planned rate from four percent to seven percent.
Treasurer Tom Koutsantonis said: “It didn’t have to be this way. South Australian businesses could have had permanent, legislated payroll tax cuts, but [opposition leader] Steven Marshall chose to help the big banks protect their super profits instead. Our number one priority will continue to be creating jobs and helping our small businesses grow.”
