i3 Group Says the Low Payroll Threshold in WA Is Stopping Businesses from Hiring New Employees

NIDDRIE, Australia - March 14, 2013 - PRLog -- i3 Group is one of Western Australia's well-known payroll service providers offering a range of services. Commenting on the low annual payroll threshold above which companies have to pay payroll tax to the government, the company said it is an important factor responsible for companies' reluctance to hire new employees.

Western Australia is Australia's fastest growing economy. As of now, small companies in WA have to pay payroll tax if their gross annual payroll bill crosses $750,000. This is stopping companies who want to add more employees but cannot do so because of the tax. The Liberals, who are currently in power in WA, have said that they will increase the threshold by $100,000 if they are voted into power in the elections a few days from now. But this assurance has received only a lukewarm response. Most people are calling it an election sop.

Some companies have even said that the payroll tax is an insidious tax and it prevents business growth. There are over 70,000 small businesses in WA. The CCIWA (Chamber of Commerce) has been lobbing vigorously to get the threshold increased to $1.5 million. Many companies have even said that they would be forced to outsource operations to other countries if the government doesn't pay heed to their demands. Some companies have already outsourced business elsewhere to stay competitive.

A spokesperson of i3 Group said that their company was watching the situation but said it was clear that the low payroll outsourcing ( http://www.i3group.com.au ) threshold was damaging the WA's business prospects. Many businesses had already shifted to states such as Northern Territory and Queensland where the payroll threshold is considerably higher. The spokesperson further added that the payroll tax hindered free enterprise, was stifling to employment, and most importantly, acted as a barrier to economic growth.

Some industries have already shrunk. The motor trading industry has already fallen by an estimated 8% in the last twelve months. The low payroll threshold has also prevented other industries such as the tourism industry with more than 80,000 businesses, from hiring more people. Interestingly, the opposition Labor party has ruled out any increase in the threshold.

About i3 Group

i3 Group is a company that specializes in payroll processing. It provides its services to businesses across various industries. The group's payroll processing services ( http://www.i3group.com.au/payroll_services ) have been appreciated for their significant time savings and affordable costs.

Contact Details

i3Group
http://www.i3group.com.au/
Phone: (+613) 8340 1600