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NSW unemployment hits 6.9%, business needs payroll tax break

16 April, 2009

NSW’s serious unemployment rate of 6.9% supported the urgent need for the Federal Government to fund a 50% payroll tax holiday across the entire country to take off some of the pressure on business operators, according to the NSW Business Chamber.

“The sobering unemployment figures have confirmed what we have been hearing from NSW businesses for months that they have been under immense pressure from the global recession,” said Kevin MacDonald, CEO of NSW Business Chamber.

NSW Business Chamber is proposing the Federal Government fund a temporary 50% payroll tax cut for the next financial year (2009/10) across Australia to provide relief for businesses.  The payroll tax holiday is estimated to cost $10 billion.

A 50% payroll tax holiday could save businesses in NSW approximately $3.5 billion.

“Payroll tax is a tax on jobs and that is the worst tax to have in this environment.”

“NSW is leading the nation in unemployment; we need to provide more targeted relief for business if we have any hope of keeping a lid on unemployment.

“We are calling on Premier Rees to lobby the Federal Government to take up our payroll tax holiday and help keep the people of NSW in jobs and keep our businesses open.” MacDonald concluded.

NSW Business Chamber has over 30,000 members and is affiliated with 110 chambers of commerce throughout NSW and the ACT.

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