Mr ANOULACK CHANTHIVONG (Macquarie Fields) (12.22): — Via video link: Thank you, Mr Temporary Speaker, for acknowledging that minor error. I contribute to debate on the Payroll Tax Amendment (Payroll Tax Waiver) Bill 2021 and will lead for NSW Labor on this bill in the Legislative Assembly.
From the outset, I state that NSW Labor will not be opposing the bill but I wish to make the following comments.
This bill seeks to address the economic difficulties being experienced by employers and employees as a result of the pandemic and lockdown measures imposed. It offers a 50 per cent payroll tax deduction waiver for the 2021-22 financial year for employers, if they meet certain conditions as outlined in the bill. It is important that public financial support offered is well targeted and effective.
We must remember that any public support is funded through public debt, which at present is forecast to be around $104 billion. That is a significant amount of public money equating to every man, woman and child in New South Wales having an approximate $13,000 credit card debt.
It is equivalent to working for 7.5 weeks for an employee on average weekly ordinary time earnings to pay off the $13,000 or, for an employee on the minimum wage, it is equivalent to working for 650 hours to pay off that per capita debt.
These are big numbers and inevitably all has to be paid back with interest.
So the next time I hear a Liberal MP talk about debt and deficit they might just want to remind themselves that $104 billion worth of public debt came in under their watch and that all their scaremongering and headline chasing of debt and deficit is nothing more than a cheap slogan.
I now turn to the bill. The conditional eligibility requirement for the payroll tax waiver outlined in section 99B (1) states:
(1) An employer who is liable to pay payroll tax on wages paid or payable for the financial year commencing on 1 July 2021 is only required to pay 50% of that payroll tax if—
(a) all Australian wages paid or payable by the employer are $10,000,000 or less, and
(b) the employer—
(i) qualified for the 2021 COVID-19 JobSaver Payment scheme or the 2021 COVID-19 Business Grant … or
(ii) met the 30% or greater decline in turnover eligibility test …
Clause 99B (2) outlines further obligations on the part of the employers if they are part of a group of related companies to provide the chief commissioner with the required information to prove their eligibility. These conditions are outlined in subclauses (a) and (b).
Evidence shows that businesses in south-western and western Sydney—and also parts of our regions—experienced the most adverse economic impact.
In south-western and western Sydney, for example, job ads were down by more than 60 per cent, compared to being down by only 30 per cent in other parts of Sydney; small businesses suffered losses in trade of up to 70 per cent, compared to other parts of Sydney which experienced increases of up to 33 per cent; and nearly 18 per cent of jobs were lost during this period of lockdown.
Regional economies have also suffered significantly, especially those in the tourism, catering and hospitality industries, as they are reliant on the income from travellers from Greater Sydney.
A closer analysis shows that the economic disparity between south-western and western Sydney compared to other parts of Sydney is also solely due to the differences in the lockdown measures imposed.
When you impose severe restrictions in some parts of Sydney but not others then it should not be a surprise if those areas experience greater economic shock to their businesses, economic conditions, employment and consumer spending.
It is not unreasonable for people and business owners in my community and others who were locked down to feel that they were targeted with unfair restrictions that were not substantiated or evidence based.
There seems to be a pattern with this Liberal Government's recent economic announcements.
Let me give you some examples. Firstly, NSW Labor suggested that to accelerate our economic recovery we should consider extending the payroll tax deductions for businesses to help them recover, and now we have this bill being tabled.
Secondly, the Opposition suggested that to get the construction and trade industry going again there should be a focus on building schools and public housing, and before the weekend was over we had the Treasurer and the Housing Minister out in western Sydney announcing an economic package to build more social housing and, not long after, there was a schools building program announced.
Thirdly, the Opposition has been calling for toll relief to help small businesses, especially those in trades, in order to cover some of the exorbitant toll increases, and guess what happened next? We had the front page of The Daily Telegraph talking about the Government's toll relief for tradies.
I say to those opposite: When you plagiarise other people's ideas, the evidence shows that you have none of your own.
The payroll tax waiver bill is a welcome relief for many businesses who have experienced economic hardship, especially those in south-western and western Sydney and the outer regional areas.
The economy bouncing back could take longer than expected. We should continue to monitor the economic situation.
NSW Labor is always happy to offer economic solutions, given it is evident that this Liberal Government does not have any of its own. I thank the House.
