The 2010 NSW Budget cuts to payroll tax are a step towards protecting retail jobs under threat from skyrocketing wage bills.
Australian Retailers Association (ARA) executive director Russell Zimmerman said NSW retailers, who are expecting significant wage bill increases from 1 July, had suffered with some of the slowest trade in the country as successive interest rate rises restricted spend for the state's home owners.
"Retailers have been calling for an abolishment of payroll tax across all states, but the NSW Government's cuts from 1 July will at least go some way to help ease the pressure from the 'double wage whammy' expected when the new minimum wage and modern award transitions kick in on the same day,” he said.
Retailers right across Australia are suffering but NSW consumers seem to be particularly sensitive to economic influences including interest rate rises, significantly impacting on the state’s retail sales.
"NSW retailers are trying their hardest to hold onto staff during these tough trading conditions, but increasing wage bills are forcing many small businesses to reduce hours and shed staff.
"The ARA is once again calling on the Federal Government to heed Henry Tax Review recommendations to work with state governments to abolish payroll tax for a direct relief on employment expenses and a positive impact on jobs and product prices," said Zimmerman.