South Australia has the nation's most competitive payroll tax system, which is driving jobs and investment to the state, according to the nation's peak business representative body.
In its upcoming Regulation Rumble report, the Business Council of Australia has ranked South Australia number 1 in the country for the most efficient payroll tax system, ahead of New South Wales, the Northern Territory and Queensland.
According to the BCA, South Australia has the lowest payroll tax rate for large employers, and the joint second-highest threshold at which the tax kicks in.
It also has a progressive rate and deduction system, reducing the relative burden on small but expanding businesses.
Business Council Chief Executive Bran Black said: "South Australians have a competitive advantage in driving more investment and jobs to their state due to it having a more competitive payroll tax system." According to budget papers, South Australia has the lowest relative tax effort of all states bar Tasmania, in terms of revenue per capita.
As put by Peter Malinauskas
Since we came to government we have been clear – South Australia is open for business.
As the Business Council's report shows, we have a competitive tax system and a government that has committed to a stable tax regime to give businesses the certainty they need.
While there are undoubtedly national and international economic headwinds, South Australia is punching well above its weight.
As put by Stephen Mullighan
South Australia is the lowest taxing state on the mainland and has the best operating environment in the nation to do business.
This independent report is yet another endorsement of the State Government's economic management, giving businesses more reason to choose South Australia, which is good news for the economy and good news for jobs.
