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WA Budget Overturns Tourism Cut

The WA state government budget is a solid and stable outcome for the $4 billion pa hotel and hospitality industry in Western Australia but more needs to be done investing in tourism marketing to improve the struggling tourism sector according to Australian Hotels Association (WA) chief executive Bradley Woods.

“In the areas of tourism, payroll tax, training, liquor licensing and infrastructure, the Liberal National state government has delivered a solid and stable budget, with some specific improvements for the hospitality sector,” said Mr Woods.

“The WA Government has maintained a steady level of investment for tourism in Western Australia. We are pleased to see that a planned $6 million cut in tourism spending has now been overturned.

“However, the tourism industry in regional Western Australia is experiencing enormous difficulties particularly in non-resource areas and we were expecting a substantial allocation of new money to market tourism.

“The payroll tax rebate for small business worth $128 million will be welcomed by the many small businesses which make up the majority of the hospitality industry.

“However, long term reform is needed to eliminate payroll tax altogether. This is a tax on employment and harms both employers and staff in small to medium enterprises.

“An additional $99 million over next two years for delivery of training services will begin to address the skills shortages which have had a negative impact on the hospitality and other industries in Western Australia.

“The budget secures funding for the Department of Racing Gaming and Liquor to undertake a major upgrade to its IT licensing system, which will deliver modern, effective and efficient online licensing services. Hotels and hospitality business will benefit from the efficiencies provided by the Department’s online services, as well as decreasing the complexity and turnaround times for a majority of services.

The chief executive officer of the Accommodation Association of Australia, Richard Munro, says the industry looks forward to the introduction of the $135 million payroll tax relief package, which has been announced in the Budget.

“While major accommodation businesses in Perth are thriving, the same can’t be said for small businesses in some parts of regional WA,” Mr Munro said. “Therefore, these operators welcome the budget measure that will see small businesses with Australia‐wide group payrolls of up to $1.5 million receive a full rebate of their WA payroll tax liabilities up to a maximum value of just over $40,000.

“The payroll tax incentives for small businesses to employ workers with a disability and Indigenous workers are also warmly welcomed.

“This is the type of initiative which has the potential to make a real difference for operators of small motels and other small accommodation businesses in regional WA where they are competing with the resources sector for labour.

“The accommodation industry welcomes the initiative for disabled and indigenous workers and our industry looks to take a leadership role in employment of anyone looking at a career in the hospitality industry.”

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