ACCI calls on government to lift superannuation burden on business and work towards abolition of payroll tax
July 28, 2010
Proposed
increase in superannuation guarantee charges doubled with current payroll taxes will hinder employers’ future
hiring ability, according to a new poll
The Australian Chamber of Commerce and Industry (ACCI) has released details of a national survey which reveals first signs of eroding support among employers for the compulsory superannuation payments system should the government raise the levy from 9 percent to 12 percent of payroll.
The ACCI survey also suggests 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 percent to 44 percent with the figure for small businesses increasing from 21.2 percent to 48 percent.
Armed with these survey results, the
ACCI is calling on Prime Minister Julia Gillard and Opposition Leader Tony Abbott to
find
a way
to fund the proposed $23 billion per year (33 percent increase) in superannuation, and commit to opening a dialogue with the states on the progressive abolition of payroll tax.
A total of 79 percent of all businesses have major or moderate concerns now with funding the superannuation levy, with total small business concern now at 80 percent.
Interestingly, 71 percent of employers report an increase of superannuation guarantee charges from the current 9 percent to 12 percent would impact on their capacity to employ.
ACCI Chief Executive Peter Anderson is urging the government to take note of the general dissent among employers.
“This survey forecasts a rocky road ahead for the next Australian Government to placate business concerns over the proposed 33 percent increase in the employer funded superannuation levy,” he says.
BUSINESS CONCERNS
Almost 75 percent 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 percent 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,” Anderson says.
ACCI’s pre-election survey was conducted in June and July 2010 amongst more than 1,100 businesses across the nation.