Page 402 - Week 02 - Tuesday, 20 February 2018
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MR BARR: The value will be reported on in the tax expenditure statement. That is the whole point of having such a statement. So that will be reported on at the end of this current financial year. There will be circumstances where there will be a multiyear agreement with a business or entity in relation to payroll waivers.
Taxation—payroll tax waivers
MS LEE: My question is to the Treasurer. Treasurer, the recent tax expenditure statement reports that payroll tax waivers in the 2015-16 period totalling $2,164,000 were “to facilitate investment and job creation in the Territory”. Treasurer, what are the estimated amounts of investment and numbers of jobs that would have been forgone without these payroll tax waivers?
MR BARR: Given that I cannot reveal for privacy reasons other than what is already publicly available in terms of, for example, the contract register, I can talk about the sporting teams. Their performance agreements are published and they do clearly employ people and bring activity to our city.
As part of a package that is offered particularly to the Raiders and the Brumbies, who would be the biggest beneficiaries, they receive both cash payments and payroll tax waivers. Clearly they employ players and officials, and the activity associated with their events in the city contributes to the territory economy. That is the practical example that I can provide the member today.
MS LEE: Treasurer, what information has Treasury provided to you on the impact of the payroll tax regime on investment and job creation in the territory?
MR BARR: The fact that we have the highest tax free threshold in the nation means that around 23,000 to 24,000 of the 27,000, or thereabouts, businesses in the territory do not pay any payroll tax at all. So that is clearly a benefit for those small and medium enterprises.
In fact, given the intersection of our threshold and our rate, it means that most businesses that operate in the ACT, with the exception of large national and multinational companies—most, not all; but most businesses in that category—are comparatively much better off locating in the territory than they would be if they were across the border in New South Wales.
MR COE: Treasurer, what are the assessment criteria that you and your directorate use to assess whether to grant waivers or not?
MR BARR: There is a process that involves a recommendation from both the economic development area and the treasury to provide a brief and advice to me as Treasurer, to exercise my responsibilities under the Financial Management Act in this regard.
Mr Coe: A point of order.
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