The Australian Childcare Alliance (ACA) NSW has warmly embraced the proposal to abolish NSW Payroll Taxes from NSW Treasurer, the Hon Dominic Perrottet MP. Especially during the COVID-19 pandemic, the removal of such structural disincentives to employment will help save jobs and enable early childhood education and care services to recover.

Changes to NSW’s payroll taxes has been an issue the Australian Childcare Alliance (ACA) NSW has been advocating to the NSW Government particularly over the last 4 years. And now more than ever would thousands of childcare centres need such NSW tax reform.

The most recent and repeated request about NSW Payroll Tax relaxation was made on 30 March 2020 (in "How can the NSW Government further assist over 5,600 early childhood education and care services and over 66,000 employees").

It is conservatively estimated that NSW Payroll Taxes collect over $150 million each year from the early childhood education and care sector, yet up to 40% of the same sector are legally not required to ever contribute any NSW Payroll Tax.

ACA NSW greatly appreciates Treasurer Perrottet’s proposal to abolish NSW Payroll Taxes as it will directly help us to save jobs, help protect the ongoing viability of childcare centres that support children and families, and finally fix an inherent unfairness that has existed for decades.

PUBLISHED: 2 MAY 2020