Payroll Tax Amendment (Payroll Tax Waiver) Bill 2021

Hansard ID: HANSARD-1323879322-119992

Hansard session: Fifty-Seventh Parliament, First Session (57-1)

Payroll Tax Amendment (Payroll Tax Waiver) Bill 2021

Second Reading Debate

Debate resumed from 20 October 2021.

Mr MARK COURE (Oatley) (12:13:43):

I am pleased to speak in support of the Payroll Tax Amendment (Payroll Tax Waiver) Bill 2021. Since the outbreak of the COVID-19 pandemic last year, businesses have experienced a range of immense pressures as restrictions on trading and other operational disruptions restricted cash flow and limited their ability to meet financial obligations.

The New South Wales Government responded by rolling out substantial payroll tax relief to businesses from July 2020, when the New South Wales payroll tax threshold increased from $900,000 to $1.2 million and payroll tax was temporarily reduced from 5.45 per cent to 4.85 per cent for 2021 and 2022. Additionally, 2019‑20 payroll tax liabilities were cut by 25 per cent for employers whose Australian wages were $10 million or less. Employers also had the option to defer their 2019‑20 payroll tax liability payment until 30 October 2020, including monthly payroll tax benefits that would otherwise have been due from March to September 2020. This has been a huge relief for small, medium and large businesses not just in the sunny electorate of Oatley but also in other electorates across the State, where small business is the backbone of every local economy. It is central to every local economy, not just in my electorate; I notice that the member for Maitland is on the screen today. Every community has a significant small business community, and it is the backbone of our communities.

The unfortunate return to lockdown in June 2021 required a further response from the Government. It is outstanding to see that employers can now choose to defer payments of their 2020‑21 payroll tax liabilities, along with their monthly payments for the July to December 2021 return period, until 14 January 2022. Come January 2022, only a couple of months away, employers will also have the option of entering into generous repayment plans, which is fantastic and a great relief for businesses. I am advised that further details of the support payment arrangement will be released by Revenue NSW later this month. With this bill the Government is also providing further payroll tax relief to help employers impacted by the extended New South Wales lockdown transition to emerge and help drive the State's and the economy's recovery. A waiver of 50 per cent of the 2021‑22 payroll tax liabilities is available to employers with annual Australian wages of $10 million or less that have experienced a 30 per cent or more decline in turnover as a result of the COVID‑19 public health orders.

I think it is important that that is repeated: A waiver of 50 per cent of the 2021‑22 payroll tax liabilities is available to employers with annual Australian wages of $10 million or less that experienced a 30 per cent or more decline in turnover as a result of the COVID-19 public health orders. On all accounts the Government is continuing to provide payroll tax assistance to support jobs in our economy. Payroll tax is one of those necessary evils, so to speak. I think we have done a great job in this space of increasing that threshold over the past 10 years, since we were elected to government. More money in the hands of small, medium and large businesses means that they are able to employ more people. They are able to grow their businesses beyond what they are now. What we were seeing before the pandemic was a massive increase of businesses small, medium and large getting out there and hiring, and that is good for the economy right across New South Wales and right across Australia.

Don Anderson does a great job at Ace Gutters but, unfortunately, he follows the wrong football team: He is a major sponsor for the Sharks. I told him that next time I would come with a red and white scarf or jersey.

On all accounts, as I said, the Government is continuing to provide payroll tax assistance to support local jobs and our economy, to ensure that we rebound faster. The Government has always supported and will always support New South Wales businesses because it knows that they are the engine room and lifeblood of our local economy. Recently I was able to visit many local businesses in my electorate. Many of them which fit this threshold welcome the good news. I was at Ace Gutters only a week ago, which is a medium‑to‑large business in my electorate with a 70‑year history.

Mr Ryan Park:

Hear, hear.

Mr MARK COURE:I note the interjection from the member for Keira. He and I are on a unity ticket.

Mr Ryan Park:There are not many of us left.

Mr MARK COURE:It is only you and me, mate. We are an endangered species. You, me and the Treasurer are St George supporters.The member for Keira is a party leader, of course, so we are not an endangered species. We are growing.

TEMPORARY SPEAKER (Mr Lee Evans):The member for Oatley will direct his comments through the Chair.

Mr MARK COURE:Mr Temporary Speaker, I note that you are not a Dragons supporter, but Ace Gutters is a proud Australian local company that is hiring people from our local community. I visited the premises with the Minister for Jobs, Investment, Tourism and Western Sydney, and Minister for Trade and Industry, the Hon. Stuart Ayres. I asked Mr Anderson how many of the people working at his premises are from the local community. His reply was that of the 200 or 300 people who work there, 75 per cent were from the local community with a sprinkle from the shire and many from Wollongong make the trek up to Boundary Road, Mortdale. This is a good Australian company and it is companies like this one that benefit from this legislation.

Mr Temporary Speaker, when we head home at night we do so in the knowledge that through this legislation we are making a difference by ensuring that companies right across Sydney—not just my electorate, although I like talking about my electorate—will experience a real difference. The Ace Gutters of the world, or any other small, medium or large company who are hiring more people, will be able to make sure that they grow their business. At the same time, more people will be being employed and will be able to spend more money and the State will be able to collect more revenue through GST, et cetera, to fund hospitals, schools, freeways, et cetera.This is great legislation. I am passionate about this legislation and I could talk about this all day, but it is for all the reasons I have given—much as I would like an extension of time—that I commend the bill to the House.

TEMPORARY SPEAKER (Mr Lee Evans):I apologise to the member for Macquarie Fields, who had the call, but I was stunned by the member for Oatley when he stood up. As the member for Macquarie Fields will lead for the Opposition he has unlimited time.

Mr ANOULACK CHANTHIVONG (Macquarie Fields) (12:22:19):Via video link: Thank you, Mr Temporary Speaker, for acknowledging that minor error.I contribute to debate on the Payroll Tax Amendment (Payroll Tax Waiver) Bill 2021 and will lead for NSW Labor on this bill in the Legislative Assembly. From the outset, I state that NSW Labor will not be opposing the bill but I wish to make the following comments. This bill seeks to address the economic difficulties being experienced by employers and employees as a result of the pandemic and lockdown measures imposed. It offers a 50 per cent payroll tax deduction waiver for the 2021-22 financial year for employers, if they meet certain conditions as outlined in the bill.It is important that public financial support offered is well targeted and effective.

We must remember that any public support is funded through public debt, which at present is forecast to be around $104 billion. That is a significant amount of public money equating to every man, woman and child in New South Wales having an approximate $13,000 credit card debt. It is equivalent to working for 7.5 weeks for an employee on average weekly ordinary time earnings to pay off the $13,000 or, for an employee on the minimum wage, it is equivalent to working for 650 hours to pay off that per capita debt.These are big numbers and inevitably all has to be paid back with interest. So the next time I hear a Liberal MP talk about debt and deficit they might just want to remind themselves that $104billion worth of public debt came in under their watch and that all their scaremongering and headline chasing of debt and deficit is nothing more than a cheap slogan.

I now turn to the bill. The conditional eligibility requirement for the payroll tax waiver outlined in section 99B (1) states:

(1)An employer who is liable to pay payroll tax on wages paid or payable for the financial year commencing on 1 July 2021 is only required to pay 50% of that payroll tax if—

(a)all Australian wages paid or payable by the employer are $10,000,000 or less, and

(b)the employer—

(i)qualified for the 2021 COVID-19 JobSaver Payment scheme or the 2021 COVID-19 Business Grant … or

(ii)met the 30% or greater decline in turnover eligibility test …

Clause 99B (2) outlines further obligations on the part of the employers if they are part of a group of related companies to provide the chief commissioner with the required information to prove their eligibility. These conditions are outlined in subclauses (a) and (b). Evidence shows that businesses in south-western and western Sydney—and also parts of our regions—experienced the most adverse economic impact. In south-western and western Sydney, for example, job ads were down by more than 60 per cent, compared to being down by only 30 per cent in other parts of Sydney; small businesses suffered losses in trade of up to 70 per cent, compared to other parts of Sydney which experienced increases of up to 33 per cent; and nearly 18 per cent of jobs were lost during this period of lockdown. Regional economies have also suffered significantly, especially those in the tourism, catering and hospitality industries, as they are reliant on the income from travellers from Greater Sydney.

A closer analysis shows that the economic disparity between south-western and western Sydney compared to other parts of Sydney is also solely due to the differences in the lockdown measures imposed. When you impose severe restrictions in some parts of Sydney but not others then it should not be a surprise if those areas experience greater economic shock to their businesses, economic conditions, employment and consumer spending. It is not unreasonable for people and business owners in my community and others who were locked down to feel that they were targeted with unfair restrictions that were not substantiated or evidence based.

There seems to be a pattern with this Liberal Government's recent economic announcements. Let me give you some examples. Firstly, NSW Labor suggested that to accelerate our economic recovery we should consider extending the payroll tax deductions for businesses to help them recover, and now we have this bill being tabled. Secondly, the Opposition suggested that to get the construction and trade industry going again there should be a focus on building schools and public housing, and before the weekend was over we had the Treasurer and the housing Minister out in western Sydney announcing an economic package to build more social housing and, not long after, there was a schools building program announced.

The Daily Telegraph

Thirdly, the Opposition has been calling for toll relief to help small businesses, especially those in trades, in order to cover some of the exorbitant toll increases, and guess what happened next? We had the front page of talking about the Government's toll relief for tradies. I say to those opposite: When you plagiarise other people's ideas, the evidence shows that you have none of your own. The payroll tax waiver bill is a welcome relief for many businesses who have experienced economic hardship, especially those in south-western and western Sydney and the outer regional areas. The economy bouncing back could take longer than expected. We should continue to monitor the economic situation. NSW Labor is always happy to offer economic solutions, given it is evident that this Liberal Government does not have any of its own. I thank the House.

Ms FELICITY WILSON (North Shore) (12:28:14):

I support the Payroll Tax Amendment (Payroll Tax Waiver) Bill 2021. We in this place know all too well the impact the COVID-19 pandemic has had on our businesses throughout last year and again through this year. We know that businesses have experienced immense pressures. There have been restrictions on trading and other operations, which have restricted the flow of cash and limited businesses' ability to meet financial obligations. As local members, we in this place know, as we spend a lot of time with our local businesses and small businesses in particular, that the nature of these businesses differs greatly from industry to industry and, therefore, the impacts on cash flow and stock differs also. We have had to be quite flexible, innovative and agile in ensuring that we respond to the needs of our businesses and support them to ensure that they can continue their operations, that they can thrive and that they can then build back better for our economy across New South Wales. We have taken a number of steps over that time in responding to the challenges of our small businesses, medium enterprises and larger businesses.

One of the ways in which the Government has done that is by rolling out substantial payroll tax relief to businesses from July last year. When the New South Wales payroll tax threshold increased from $900,000 to $1.2 million the rate was temporarily reduced, as other speakers have said, from 5.45 per cent to 4.85 per cent for both 2020‑21 and 2021-22. Additionally, the 2019-20 payroll tax liabilities were also cut by 25 per cent for employers whose Australian wages were $10 million or less. Employers further had the option to defer their 2019‑20 payroll tax liabilities payments until 30 October 2020, including monthly payroll tax payments that would otherwise have fallen due from March to September 2020.

It was unfortunate that we had to go back into lockdown in June of this year. It required a further response from us as the Government for the community. Employers can now opt to defer payments of the 2020-21 payroll tax liabilities, along with their monthly payments for the July to December 2021 return periods, until 14 January 2022. Come January next year, employers have the further option of entering into a generous repayment plan. The details of that support payment arrangement will be released by Revenue NSW in November. With this bill the Government is providing even further payroll tax relief to help employers impacted by the extended New South Wales lockdown transition to emerge and drive the State's economic recovery. A waiver of 50 per cent of 2021‑22 payroll tax liabilities is available to employers with annual Australian wages of $10 million or less that have experienced a 30 per cent or more decline in turnover as a result of the COVID-19 public health orders.

I want to talk about issues a little closer to home in my community of North Shore and the impacts that have been felt by our businesses. Every community across New South Wales is very different. Our industries are very diverse. What is really interesting about my community is that we have a major CBD of North Sydney bang in middle of the electorate but we also have a predominance of small businesses across our local communities—our local villages, as we like to refer to them—so there have been very diverse challenges. Firstly I will speak about our smaller businesses and our village businesses. I had the great privilege of working quite closely with the Minister for Finance and Small Business, the Hon. Damien Tudehope in the other place, and the Small Business Commissioner, Chris Lamont. We worked with our small businesses locally to hear from them, to understand their concerns and to be agile and responsive to their needs. I thank the Government. I thank the former Treasurer, now Premier, and the new Treasurer on the work that they have done to be responsive to our businesses' needs, but I particularly thank the small business Minister.

The Hon. Damien Tudehope joined me on a number of occasions to listen to our businesses. The first thing that we always need to do is to understand what they are going through and what they need. We had a number of different local forums in my community that I organised with my local business chamber. I thank particularly the Mosman Chamber of Commerce and Tamara Keniry, its president, and the Neutral Bay Chamber of Commerce and Nicole Robertson, who worked with me on those forums. The Minister and the Small Business Commissioner joined us early on in lockdown, initially as a listening exercise to understand the concerns and what needed to be changed. At that time we had a number of different challenges facing our businesses in accessing support. We had challenges with the processing time through Service NSW. We had to introduced a number of different clarifications and changes to make sure that people who had very specific needs that could not be assessed simply through grants applications could have those needs met through the Service NSW process. We responded to that and we made changes.

Later in the pandemic and during the lockdown earlier this year, we started to look forward to what we could do when we started to emerge from the lockdown to reinvigorate and ensure that we get our businesses back on track. We talked to a number of my local businesses about just how long it took them to recover from the last lockdown, and there was a lot of fear that it would take even longer to recover this time. Some people were thinking it would take six to 12 months just to get back to normal trading. Businesses that had significant issues with cash flow included a couple of local businesses that met with me: Mary Rossi Travel and Mosman Travel. The cash flow of those businesses is completely constrained because, although people want to make travel bookings, the actual commissions that flow through to these businesses do not occur until people have actually undertaken that travel. Yet they have to hire staff now and have people on the books now to make those bookings and get their businesses back on track.

I organised another forum with the small business Minister and a number of my local businesses across diverse industries. I thank them for participating. Once again I thank Tamara Keniry from Mosman Chamber of Commerce and Nicole Robertson from Neutral Bay Chamber of Commerce. There were a diverse range of businesses who participated including: Peter Calligeros from the Rag & Famish, the pub in North Sydney many members would know; Sharyn Kitchener who is with Mosman Travel and Mary Rossi Travel; Nikki and Mikala Holloway, who run The Nowhere Nation, a wonderful shoe boutique in Mosman; Liz Nable from Xtend Barre; and Haylee Guy from Miller & Green Hairdressing in McMahons Point. Thank you to all of them for sharing their insights with us and getting changes.

Our small businesses are now experiencing a huge investment from our local communities. Think Mosman First, an initiative of Mosman Chamber of Commerce and supported by Mosman Council, is ensuring that people back our local businesses. North Sydney Council is increasing space for outdoor dining, and waiving fees for outdoor dining and council‑owned assets and facilities to support those businesses to thrive. One of the key components in this Government's policy that does not get enough attention is the CBDs Revitalisation Program. As I said at the beginning of my contribution, my community has a significant CBD in the heart of the electorate in North Sydney. When people are not in the CBD the businesses automatically suffer. People are not fully back in offices yet, which impacts not only daytime trade but also evening and weekend trade. That $50 million program is an incredibly important component of the bill and will include North Sydney.

Funding applications for the second tranche open this month and close in February. The program will enable businesses, councils and cultural institutions to apply for funding to support activation and initiatives to get our CBDs to thrive again, which is what North Sydney needs. A number of initiatives are already underway. Minister Stokes, through the Streets as Shared Spaces Program, has done an amazing job changing Miller Street into a partly pedestrianised road with outdoor spaces where people can congregate and outdoor pianos that people can play. That is revitalising North Sydney by giving it a soul and a heart. We also need the trade for our businesses. We need people back in their offices and then sticking around for cultural interactions, meals and socialisation. The Government should be proud of this initiative, which ensures support for our CBDs. I thank the Treasurer and the Premier for their leadership on that.

The payroll tax reforms in the bill are part of a broad suite of measures that we want to put in place to make sure that we can get our small businesses, medium‑size enterprises and big businesses back and firing so that our economy is firing on all fronts. That will ensure we all have a wonderful summer, recover well into 2022 and see the benefits of that flowing through to our local communities and to people's pay packets. I commend the bill to the House.

Mr ROY BUTLER (Barwon) (12:37:16):

I speak briefly on the Payroll Tax Amendment (Payroll Tax Waiver) Bill 2021 because my message is simple: I welcome the bill but urge the Government to go further and implement a State payroll tax system that encourages business into regional New South Wales by taking away the 30 per cent decline in turnover requirement and permanently introducing a payroll tax exemption for regional businesses in defined local government areas. I have often said that the one undeniable metric for success of government policy and intervention, which transcends all others, is population. Providing an incentive for businesses to set up or remain in regional New South Wales has a direct impact on attracting and retaining population in the regions.

Payroll tax is a handbrake on jobs, regional economies and the financial wellbeing of businesses. Given the tax is levied at a State level, it is a tax that the Government can amend. It is a lever it can and should pull to help the economies of regional communities. All the budget and funding announcements—or re‑announcements—have used language about "supercharging" and "turbocharging" economies. Consider removing payroll tax in regional New South Wales a shot of nitrous for the regions. It would help regional businesses and communities to help themselves by employing more people and growing faster. I do not apologise for seeking an un-level playing field for businesses in regional New South Wales, and I and the Shooters, Fishers and Farmers Party will not resile from that position.

The Government has an opportunity to show regional people that it wants to see regional New South Wales recover better than ever by removing payroll tax for them. Any regional member who does not think that should be the case should face their electors, especially business owners, and explain why. If we do not maintain or grow population in regional New South Wales we will lose the critical mass required for services, schools and local government. I urge the Government to take the opportunity to do the right thing by the bush and remove payroll tax in regional New South Wales.

Ms JENNY AITCHISON (Maitland) (12:39:03):

I speak to the Payroll Tax Amendment (Payroll Tax Waiver) Bill 2021. As we know, the bill legislates the Government's COVID‑19 support package to reduce payroll tax by 50 per cent for the 2021-22 financial year. It is estimated that it will benefit 8,000 businesses, saving about $410 million in payroll tax for that period. But what I speak about today is those other 600,000‑odd small businesses in our community that will not benefit from this measure and that have been really struggling through the pandemic. It is really important that we understand that a lot of different types of small businesses have had a lack of attention paid to them. It is great to see so many Coalition members get up and talk about small businesses in their electorates, but it is really important that we talk about the ones that are getting left behind.

I could not help myself; I had to come to the Chamber because this week I received a letter, which I think every member in this place received, from Chris Watson, who is the owner of Chris Watson Travel in Tamworth. It is along the same lines as the letters I have received from Warwick "Curly" Gladman at the Greenhills Travel Centre in my electorate and Sarah Fenton at Mobile Travel Agents in my electorate, as well as the conversations I have had with the many travel agents who I employed over the years when I had my business, which I sold back in 2016, and all of the other people that I know who are involved in the tourism, transport and travel industries, including coach tours, which also comes under my responsibilities as the shadow Minister for Regional Transport and Roads.

Unfortunately, this bill again shows no direct support for anyone in this industry, which has been hurting consistently since March 2020, when everything stopped. In fact, back in March 2020, my husband worked in a travel agency and a coach tour operator. I remember opening the brochure of the tours that he was responsible for putting together and every single one, as I turned each page, had been cancelled. That is continuing to happen today—the booking of the tours, the cancellation of the tours, travel agents who cannot get people to book with them. I have had people coming into my electorate who try to bypass travel agents altogether these days because they just do not think that they are still operating, even though they are working so hard. I pay respect to Chris Watson today by reading out some of his comments because I think they need to be on the record in this place. There are so many travel agents, tour operators and people in our regions particularly who are struggling. To put Mr Watson's letter in context, he wrote to former Treasurer Dominic Perrottet to seek help for his business. Upon receiving the former Treasurer's reply, Mr Watson wrote:

Unfortunately again this still shows no direct support for the Travel Agent Industry. The below reply is almost insulting, showcasing some of what has been done for other targeted industries but not ours.

This is the response from Premier Dominic Perrottet:

Travel agents were able to apply for 2021 COVID-19 business grant, COVID-19 micro-business grant and JobSaver payment. The same as other small businesses.

Mr Watson continued:

… my challenge to our government is that..

Those other small businesses did not have to give back commissions on sales they had made a year earlier.

Those other businesses still had product to sell..

We had no product to sell due to government regulations on state and national travel, even travelling outside of our own LGA was restricted at times.

I have seen businesses close their doors for a holiday or turn off eftpos machines to get these grants...

Our businesses that actually need it also got it, but surely we are not the same as a clothes shop, a gift shop or hospitality...

Could you imagine if in March last year everyone went back to their local gift store, or their local accountant and asked for a refund... Well that is what happened to our industry.

Mr Watson's question that he would like answered is "How is this fair? How is this comparing apples for apples?" About the Dine & Discover vouchers, he said:

We were able to be part of this but again.. Does it seem fair we got the same offerings as businesses who weren't forced to give back sales that were cancelled?

Stay & Rediscover voucher scheme —

This to our industry is an insult. In July hoteliers got compensated bed nights for loss of income, yet travel agents who made bookings for those bed nights received no compensation at all. In fact we had to fight with the hoteliers to even get refunds from them to give to our clients. These vouchers should be made redeemable through travel agents.

John Howard did that during the Holiday Incentive Program after September 11. He actually valued the contribution that travel agents made to our community, unlike this Government, which has hit them and smashed them ever since 2011. Mr Watson refers to the $60 million Aviation Attraction Fund and asks, "How much does this insult us?" He continues:

The big end of town again getting support.

The performing arts, event saver, alfresco again is geared towards helping hotels, hospitality etc but not our industry an industry that undoubtable was the hardest hit.

It appears that our state government that we voted in—

I did not vote it in, but he did—

is either not listening, unaware of the impact their decisions have made on the travel agent industry or ignorant. The same government that thousands of agents may stop supporting if their voice isn't heard.

We have seen support for farmers in drought, for natural disasters ... If this is not a drought to our industry ... then I am not sure what is ... however again no support.

Mr Watson goes on to say:

Does our government care about the small

— medium size, Mum and Dad businesses that has kept the economy going? Does our government understand these travel agents that are forgotten, fought with the big companies like Qantas, Hotel chains etc to get over $7 Billion dollars in refunds and we are still chasing more for our clients.

Why is our industry left out and forgotten about?

The very businesses the Government is supporting are the ones that made it hardest for travel agents and their customers. Mr Watson talks about having $80,000 with one apartment chain that he cannot get back, but the chain will still be able to take advantage of Stay & Rediscover. Another hotel chain has $15,000 of client funds that it is not giving back. Yet another one has $15,000. All those companies that are withholding client funds and offering only credits can take advantage of the Stay & Rediscover program. Yet Mr Watson, being an honest man, gave back his commission and fought for his clients. He says:

As agents yes travel is opening but now we don't make our money until clients depart. So we will have a good 6 months of at least of struggling cash flow without income to pay the bills, still while trying to keep staff employed.

That brings me back to the bill, which is targeted to businesses under $10 million. I had a pretty successful travel agency business a few years ago. Our entire revenue was $10 million and our staff payroll was about $1.2 million—well below that threshold. Does anyone know how many of the 35 staff that I used to employ in that business are still employed? Not even one. One woman, whom I employed over 10 years ago, gets about two days work in that business a week. But members opposite, with their poorly defined and targeted but supposedly great help for small business, are missing the mark yet again.

People like Chris Watson, who is a taxpayer, as he says, are suffering. He has raised over $500,000—half a million dollars—for drought, bushfires, Ronald McDonald House and the Westpac Rescue Helicopter. He came from public housing and is a self-made businessman. He sold his house last year to keep his staff employed, pay his bills and give refunds to customers. What has this Government done for him? Absolutely nothing. He says:

I have never asked for a hand out but yet here I am. I am left feeling like our government has turned its back.

…

I Urge you to have a look around your electorate and see how many agencies have closed.

Tamworth, where Mr Watson lives, had seven agencies. I visited them all when I was a travel agent and tour operator, and I visited them as shadow Minister for Small Business. Tamworth is left with three agencies. The Minister needs to pick up the phone and ask those that are still trading how they are going and how they have found the past 20 months. Then they need to stand up and show their support for the community, who pay their taxes, and for travel agents across the State.

Opposition members support the payroll tax waiver and the fee relief because we know they are important, but there is such a gap. For the Liberal Party to continue to call itself the party of small business makes me sick. Their Coalition colleagues in The Nationals, who are leaving the only people in their communities who are really still struggling hanging out to dry, disgust me. There is a good part in this bill but there is nothing for small business, and they should be ashamed of it.

Mr MATT KEAN (HornsbyTreasurer, and Minister for Energy and Environment) (12:49:00):

— In reply: I thank members for their contribution to debate on the Payroll Tax Amendment (Payroll Tax Waiver) Bill 2021 concerning an important policy area. Obviously COVID has hit many people hard. We need to be doing everything we can to help them get back on their feet and to bounce back better. This Government is committed to ensuring that businesses that did it tough during the Delta lockdown are supported through this payroll tax waiver, along with the deferral of the payment to January and the implementation of the payment plan. The payroll tax plan is about removing additional burdens from businesses in this very difficult time. The Government believes that up to 8,000 small- to medium-sized businesses will benefit from this initiative. Obviously there will be a cost to the taxpayer, which is expected to be around $410 million. The Government thinks that is a small price to pay to ensure that we safeguard the engine room of our economy—small-to-medium enterprises—so they can continue to employ people and help get the economy back on its feet. I greatly appreciate the broad cross-section of support for the initiative. This kind of policy should be beyond politics. We need to support our businesses and communities through the pandemic so that we can come out better on the other side. I commend the bill to the House.

TEMPORARY SPEAKER (Mr Lee Evans):

The question is that this bill be now read a second time.

Motion agreed to.

Third Reading

Mr MATT KEAN:

I move:

That this bill be now read a third time.

Motion agreed to.