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Sloane Unveils Major Payroll Tax Cut, Developer Levy Freeze and Infrastructure Pledges

Labor and treasury papers say the package would create multi‑billion dollar shortfalls that the Coalition has not costed.

Overview

  • Opposition leader Kellie Sloane rolled out a pre‑election package that would raise the payroll tax threshold from $1.2 million to $1.5 million and cut the rate to 4.75% for businesses with payrolls under $10 million.
  • The Coalition also promised a freeze on developer contributions until June 30 and a change to make payments due at project completion rather than approval.
  • Sloane pledged a new Western Sydney City Deal and progress on a south‑west Sydney metro while announcing a pause to the New England renewable energy zone and the scrapping of a controversial transmission line.
  • The opposition has not published offsets for the lost revenue and Labor estimates the cuts would cost about $3 billion over four years while budget papers show payroll tax receipts were expected to rise by $943 million over the same period.
  • Business groups have welcomed the changes as pro‑growth but experts warn the metro promises need federal funding and large projects have already seen more than $6 billion in cost blowouts, raising questions about delivery and budget credibility.