THE Gunnedah commerce chamber has backed calls for businesses in the bush to be exempt from payroll tax, saying it would give regional areas a competitive leg up against their metro counterparts.
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The NSW Nationals recently adopted the idea as part of its policy platform.
The motion originally called for businesses in Local Government Areas of less than 30,000 people be exempt, however the proposal was amended to include all regional councils.
Gunnedah and District Chamber of Commerce president Stacey Cooke backed the proposal, which she labelled a "win-win" for regional towns.
"It would encourage medium-to-large business to expand or relocated here," Ms Cooke said.
"It's a great incentive for them and would stimulate our local economy."
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From this financial year, once a business pays more than $900,000 in employee wages, it is hit with a 5.45 per cent tax.
Ms Cooke said she knew of a number of businesses that were "severely impacted" by payroll tax, particularly when they only just pass the $900,000 threshold.
Four local Nationals branches put forward the policy at the annual state conference, including Gunnedah, Moree, Uralla and Wauchope.
Gunnedah Nationals chair Murray O'Keefe said the proposal would encourage "private decentralisation".
"In Gunnedah, we're all about a hand up, not a hand out," he said.
"It's not about having a letterbox or PO box address here.
"It's for big companies who genuinely come out here and help unlock regional potential."