Expressway Spares' Patrick Cassegrain has a simple message for government looking to help business survive in Australia.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
He wants to see the "immoral" payroll tax completely removed.
Mr Cassegrain urged the state government to consider the move following the federal government's launch of a stimulus package on Thursday night.
The stimulus package totals $17.6 billion and is the federal government's response to counter the impacts of the coronavirus - or Covid-19 pandemic.
Business NSW has applauded what it called "decisive action" to address the looming economic challenges associated with coronavirus.
A snapshot of the package includes:
- increasing the instant asset write-off to $150,000
- accelerating depreciation deductions
- support for SMEs to cover the cost of employee wages and salaries
- support to cover half the wages of 117,000 apprentices working for businesses with fewer than 20 employees until September
- $750 in stimulus payments to social security, veteran and other income support recipients
- $1 billion in support to help communities most affected.
Business NSW regional manager Kellon Beard says small or medium-sized enterprise (SMEs) need an immediate injection of confidence.
"Going hard early to support the SMEs and their staff through this tough time will allow a quicker recovery after the storm passes," Mr Beard said.
Combined with the $10,000 grants for those indirectly impacted by bushfire, these measures will help businesses manage their cash flow and keep staff employed.
- Kellon Beard
"Combined with the $10,000 grants for those indirectly impacted by bushfire, these measures will help businesses manage their cash flow and keep staff employed.
"In these uncertain times, all sides and levels of politics must pull together.
"Business owners will be relying on Labor to support the stimulus package when it comes before parliament."
Mr Beard also hinted at state government measures to help boost confidence.
"Equally, the NSW government must use its strong balance sheet to boost confidence for local businesses.
"Last week the Queensland government gave their employers a six month payroll tax holiday - it's time for NSW to do the same," Mr Beard said.
Mr Cassegrain says he's had a quick glance at the stimulus package.
The multi-faceted package is highlighted by a wage subsidy for employed apprentices, provides a boost to cash flow for business and increases the write-off threshold for certain businesses.
"I absolutely agree with the move to help offset the wages of apprentices," Mr Cassegrain said.
"But the best cut would be to completely abolish the payroll tax.
"It is an immoral tax, in my opinion.
It is an immoral tax, in my opinion.
- Patrick Cassegrain
"As far as I am concerned, the removal of that tax would be the best stimulus.
"But would be in a position to employ more people, which would help ease unemployment and help industry move forward."
Mr Cassegrain said businesses on the threshold, do think twice about employing people.
He says removing the payroll tax would help create a more competitive Australia and industry.
It would also go a long way toward reducing the high level of red tape involved in employing people.
"Our cost of manufacturing is high because of the cost of merely employing people," he said.
"Workers deserve the wages they receive - and I am support any employing getting a good wage - but the red tape is far too complicated.
"We would produce more in Australia if we could employ more people."
Also making news:
While you're with us, you can now receive updates straight to your inbox from the Port Macquarie News. To make sure you're up to date with all the news, SIGN UP HERE.