Confused Minister creates chaos over misleading small business payroll tax

Tasmanian Labor

The Acting Premier Jeremy Rockliff must fix the mess created by his Small Business Minister after she repeatedly misled Parliament on JobKeeper and payroll tax.

Shadow Minister for Small Business Janie Finlay said, the Minister Jane Howlett has created confusion either through sheer incompetence or deliberately misleading the House or, worse still, both.

"On Tuesday, Ms Howlett told Parliament three times that JobKeeper payments were exempt from payroll tax," Ms Finlay said.

"But Labor has received a letter from a Tasmanian accounting firm refuting that.

"It says several clients received unexpected payroll tax bills because JobKeeper was not exempt from payroll tax; rather, the payroll tax liability was proportionately reduced based on the percentage of wages over total wages, providing only a small payroll tax concession.

"One business we have heard from is $7,000 out of pocket as a result of being misled about the tax treatment of JobKeeper payments.

"And yet, today, when asked if she stood by yesterday's statements, Ms Howlett failed to correct the record.

"Clearly Tasmanian business ARE being charged payroll tax on JobKeeper wages, but have been led to expect otherwise by initial government headlines and media coverage, and now the Minister herself is misleading the House.

"Many Tasmania businesses are doing it really tough right now and the last thing they need is a massive and unexpected payroll tax bill landing in their lap, and a minister who doesn't understand her portfolio.

"The Acting Premier needs to step up and instruct the minister to correct the record, and fix the mess created by this ongoing spread of misinformation.

"There are likely hundreds of businesses now facing large, unexpected payroll tax bills, and they deserve clarity and support, not misleading spin from an incompetent Minister."

Janie Finlay MP

Shadow Minister for Small Business

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