Media Release | 20 June 2025
Sandra Brewer MLA
Shadow Treasurer
Yesterday’s State Budget revealed that Western Australian businesses will once again make a massive contribution to Government revenue while getting little support from the Cook Labor Government.
Payroll tax receipts are forecast to be $6.154 billion for 2025-26, growing by 4.5 per cent on the previous year. In this term of Government, payroll taxes are forecast to reach another record, over $7 billion in 2028-29.
Shadow Treasurer Sandra Brewer said the Labor Government had consistently failed to deliver for small business.
“Treasurer Rita Saffioti’s default setting is to take more and spend more, when it comes to taxes on Western Australian businesses,” she said.
Payroll tax kicks in when a business’ payroll hits over $1 million. At 5.5 per cent, WA’s payroll tax rate is the highest of any state in the nation.
“This Government have shown no ambition for tax reform or restraint. This inaction acts as a disincentive for business to employ more Western Australians.”
Jay Sidhu runs a surveying business and said the payroll tax burden is limiting his ability to expand and employ more Western Australians.
“It doesn’t make sense, I want to give more people jobs, but the tax rate means it deters us from growing,” Jay said.
Ms Brewer said businesses involved in the housing sector were also stifled by delays in critical headworks like power connections at building sites, which was contributing to the housing crisis.
“Western Power has been increasingly slow to deliver critical power connections to new builds. After contributing record payroll taxes, the Government is letting down businesses who hold the key to diversifying our economy and addressing the housing crisis.”
Under the McGowan and Cook Governments, Western Australia has been building 8,000 less homes each year than under the Barnett Government.
“A key reason for the Cook Labor Government’s housing failure, is their wrong priorities.
They’ve contributed to workforce shortages in residential construction by focusing on their own pet projects. Treasurer Rita Saffioti’s track record is one of ever-mounting blowouts on Metronet and now her priority is a racetrack in Burswood.”
“Meanwhile, small and medium businesses are being punished with higher costs, more red tape and no support. This Government is happy to take their taxes but gives little back in return.”
ENDS
MEDIA CONTACT: Marty Lake | 0405 068 590
