Western Australian small businesses are the backbone of our economy, driving innovation, providing employment opportunities, and supporting local communities.

Yet, these businesses continue to face mounting costs, with payroll tax acting as a significant barrier to growth and job creation.

Currently, payroll tax is assessed on wages paid by an employer in WA, with those under $1 million in wages exempt from this tax.

For the many small businesses that exceed this threshold, payroll tax is an undue financial burden that stifles expansion, limits hiring capacity, and reduces investment in the Western Australian economy.

Instead of rewarding success and job creation, the current system penalises businesses for growing beyond an arbitrary threshold, discouraging employers from expanding their workforce or increasing wages.

Under the current system, Western Australian small businesses are placed at a competitive disadvantage, making long-term sustainability harder at a time when our state needs the benefit of business most.

In an era of rising costs and economic uncertainty, we should be empowering small businesses — not hindering them with excessive taxation that makes it harder to compete, thrive, and contribute to the prosperity of Western Australia.

The WA Liberals understand small businesses need real tax relief to remain competitive and succeed in the face of financial stress.

With the cost-of-living crisis putting immense pressure on families and small business owners alike, it is critical we provide targeted relief where it is needed most.

Now, more than ever, WA needs common-sense policies that foster business growth, attract investment, and secure a stronger economic future for our state.

Only a WA Liberal Government will deliver it.

The WA Liberals recognise that lowering business costs is key to creating jobs, driving economic growth, and supporting hard-working business owners.

With a proven track record of delivering payroll tax relief, the Liberals have implemented targeted rebates — first during the Global Financial Crisis and again in 2012-13 — to help small and medium businesses retain and hire staff.

In addition, the former Liberal-led Government twice increased the payroll tax threshold, from $750,000 to $850,000, saving more than 16,000 businesses a total of $121 million and easing financial pressures on employers.

Building on this strong foundation, a WA Liberal Government will reduce payroll tax by up to $32,000 for businesses with a wage bill of $1.5 million or less and provide a partial rebate for those with payrolls under $3 million for one year, delivering real cost of living relief to small businesses.

This will provide over 7,500 Western Australian businesses — mostly small businesses — with financial relief, at a time when supply chain costs, insurance premiums, interest rates, utilities, and property costs have skyrocketed.

We will also drive further long-term economic reform by requesting the Economic Regulation Authority undertake a review into the sustainability of WA’s payroll tax scheme.

Lowering taxes and burdens on businesses not only takes the pressure off hard-working owners and employers, but allows them to reinvest in the workforce, by enabling them to hire more staff, offer better wages, and support overall economic growth.

Western Australian businesses deserve a government that recognises payroll tax reform is essential for a strong, adaptive business community, especially during a cost of living crisis.

Only the WA Liberal Party is committed to providing targeted cost of living relief for Western Australians, and ensuring WA remains a place where businesses can thrive.