NECA WA secures payroll tax relief for members

Following a comprehensive lobbying campaign, NECA WA welcomes WA Premier Mark McGowan’s decision to implement a moratorium on payroll tax and thanks the Premier for listening to us.

Payroll tax in Western Australia will be waived for a four-month period between 1 March 2020 and 30 June 2020 for small and medium-sized businesses with Australia-wide annual wages of less than $7.5 million in 2019-20. 

This decision will have a direct positive effect on a large number of NECA WA members and their businesses.

Whilst NECA thanks Premier McGowan for listening to NECA and reducing payroll tax for small-to-medium businesses, we will also be asking him to seriously consider the following:

  • That these measures be extended to large businesses as well. In NECA’s experience, all businesses (small, medium and large) are an integral part of Western Australia's economy and should not be penalised due to their size; and
  • Make these measures a permanent fixture. A four month window will not be sufficient time for any business to be expected to awake from hibernation and then to be financially fit.

NECA WA will also continue to lobby both the State and Federal Governments in order to:

  • Ensure protection of subcontractors from claims for liquidated damages in cases where contract delays have been caused by COVID-19.
  • Ensure electrical services are classified as an essential service during any lockdown.
  • Expand the wage subsidy for apprentices from businesses with less than 20 staff to all businesses.
  • Expanding the definition of normal working hours to 5.00am – 9.00pm to enable contractors to stagger shifts to reduce the health risks on sites, without incurring penalty rates.

NECA WA is also working with other industry organisations such as the MBA and the ETU to communicate the importance of social distancing on work sites. If these rules are not strictly adhered to, then the health department has threatened to close construction sites, which would have a devastating effect on the industry.

On 2 April 2020 NECA WA launched a comprehensive COVID-19 Employer Guide for members, covering health and safety recommendations, contractual obligations, employee management, details on the stimulus packages from both the Western Australian and Federal Governments and many other suggestions on how businesses should proceed in this unprecedented period. This document will be updated frequently, with the date of the most recent release printed on the cover so that members can ascertain the currency of the information. 

Please contact Aidan O'Grady, General Manager NECA Services, with any queries regarding this eAlert.