Business groups say the State Government needs to ease its reliance on the $3 billion revenue it receives from pay roll tax.

The WA Chamber of Commerce and Industry is calling on political leaders to double the payroll tax threshold to $1.5 million.

Currently businesses pay the tax when their annual payroll exceeds $750,000, a threshold which has been fixed for 10 years.

However, average wages in WA have increased by 80 per cent during the same period.

The chamber's James Pearson says the next government should lift the threshold and cut the payroll tax rate.

"Those are measures that are guaranteed to stimulate the small business end of the economy," he said.

He says doubling the threshold is a realistic and beneficial option.

"It's not going to cost a lot of money, it will be a fraction of the $3.3 billion a year that governments get in every year from business on payroll tax," he said.

"But, what's even better, is that it means small businesses will be able to hire more West Australian men and women."

The Premier Colin Barnett has indicated the Liberal Party will announce some relief measures as part of its campaign.

The Labor leader Mark McGowan says he cannot make any promises.

"If we're elected, we have to deal with Mr Barnett's debt as well so it is difficult to make a binding commitment to help small businesses with this because of that debt issue," he said.

"But I'll say this, I have a lot of sympathy and empathy based upon my background for people in small business."

 

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