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Legislative Assembly for the ACT: 2000 Week 6 Hansard (23 May) . . Page.. 1584 ..

The threshold will rise to $1.25 million on 1 July 2001, and to $1.5 million on 1 July 2002. By the time the graduated scheme is in force, 230 businesses which currently pay payroll tax will pay no payroll tax, and the impost on every business which will still pay the tax will reduce significantly.

Let's look at an ACT business with a wages bill of $1.45 million. Under Labor, that business was paying $63,000 a year in payroll tax. Since the election of the Carnell government, that tax bill has been cut by $18,475 per year, and from 1 July 2002 that business will pay no payroll tax whatsoever. That equates roughly to the jobs of two young people employed in that business. This payroll tax regime will now be the most attractive in Australia for small and medium sized businesses, and will be a major feature in supporting not just new businesses but sustainable growth from business already in the territory.

Part of building a clever, caring city is to diversify our employment base and provide real job opportunities, not just for our young people but also for those seeking to change their career directions. While payroll tax raises over $130 million a year, it is a tax on employment. This future strategy for payroll tax ensures that that impost is reduced and that the government takes another small step in getting out of businesses' pockets. The gain this creates for business allows them to invest in our city's social capital-jobs, sponsorship, our sporting teams and other forms of community support which involve businesses more and more.

Employment, Business, Arts and Tourism

The good news for business and employment growth in this budget does not end with tax cuts. The government announced earlier this year our intention to support Impulse Airlines establishing its jet heavy engineering base, a call centre and other facilities in Canberra. As members of this Assembly know, that arrangement comes at a cost of $8 million in funding and some further tax breaks. This budget delivers the $8 million payment to Impulse.

This new business coming to Canberra will create up to 400 new jobs in our community. It represents one of the most exciting new business ventures to come to Canberra, and, on top of the massive benefits the establishment brings to Canberra, the growth in tourist numbers will provide new and significant opportunities for local and regional businesses.

Over 1,000 jobs have been created through the highly successful business incentive scheme since its inception in 1996. As announced in the draft budget, this budget provides $675,000 to fund business incentive scheme applications to Telstra, Ansett and Raytheon systems in ventures that will create 700 new jobs.

We are providing $464,000 to allow for the completion of site works for the BRL Hardy wine tourism complex, representing the completion of the ACT government's commitment to this exciting new venture to promote the region's wine industry, and $510,000 is being allocated to create a further 330 apprenticeship places in the user choice program, providing real entry-level employment opportunities for young Canberrans.

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