NSW Labor wants to slash red-tape for the tens-of-thousands of businesses that pay payroll tax, today proposing a new tax reform. 
 
Under the plan, a Minns Labor Government will approach the Commonwealth and seek to enter into an agreement which would give NSW businesses the choice of lodging their payroll tax returns with the Australian Taxation Office. 
 
Currently, the 52,000 businesses in NSW registered for payroll tax must lodge monthly tax returns with Revenue NSW, as well as undertaking an annual payroll tax reconciliation.
 
By lodging with the ATO, those businesses could instead take advantage of the ATO’s Single-Touch Payroll system. It lets employer use approved payroll software or third-party payroll vendors to transmit real-time data, which includes information about employee wages.
 
Using Single Touch Payroll, ATO data could allow monthly or annual payroll tax returns to be automatically pre-filled using real-time salary and superannuation data reported employers have to file anyway. This change would save businesses countless hours in filling out forms and in compliance costs.
 
Efforts are already underway to make single-touch payroll data available to state revenue agencies. Labor’s move goes one step further. By potentially allowing businesses to lodge with the ATO, the plan would cut out the ‘middleman’.  
 
Labor’s initiative will have no effect on state revenue or legislative powers. NSW will continue to receive all its payroll receipts.  
 
Quotes Attributable to Daniel Mookhey, NSW Shadow Treasurer:
 
“NSW need to move with the times. This proposal is practical, deliverable and it makes-sense.
 
“NSW businesses shouldn’t need to burn their energy dealing with bureaucracies. We want to free up their time so they can get on with growing their businesses, and creating jobs. 
 
“We won’t be able to deliver a reform like this straightaway. But we will start having the necessary conversations with the Commonwealth.
 
“We want a win for NSW jobs, a win for businesses – as well as win/win solution for both the state and the Commonwealth.” 
 
Quotes Attributable to Anoulack Chanthivong, NSW Shadow Finance Minister: 
 
“Many Australian taxpayers and businesses have used the ATO’s modern updated system and know from experience that it is reliable and efficient.
 
“Using the Single Touch Payroll helps every eligible business manage their taxation requirements better and improves their workplace productivity and efficiency.”
 
Quotes Attributable to Stephen Kamper, NSW Small Business Minister:
 
“I know from personal experience how time consuming and distracting preparing payroll tax can be for a small to medium sized business.
 
“This announcement should come as welcome news to the hard-working businesses and business owners who are the cornerstone of the NSW economy.”

DANIEL MOOKHEY MLC
NSW SHADOW TREASURER
 
ANOULACK CHANTHIVONG MP
NSW SHADOW MINISTER FOR INDUSTRY AND TRADE

STEVE KAMPER MP
NSW SHADOW MINISTER FOR SMALL BUSINESS, PROPERTY AND MULTICULTURALISM