Restaurants & Catering SA fight tax burden

In Featured Home Page News, National Headlines, South Australia

From Adelaide Now

THE hospitality industry wants an urgent overhaul of payroll and land taxes to help it survive.

Restaurant & Catering SA chief executive Sally Neville said the current payroll tax threshold, which applies to companies with wage bills above $600,000, was too low.

She said it was an added burden on restaurants and caterers during this tough economic environment, as more eateries close than open because South Australians choose to stay home rather than eat out.

“An industry like ours is highly labour-reliant and has much higher labour bills than other industries,” she said.

“This is at a point in time when there are more businesses closing than opening in our sector.”

A state parliamentary committee is conducting a comprehensive tax review and results are expected to be announced towards the end of this year.

Restaurateur Michael Sfera, the general manager of Sfera’s Park Suites and Convention Centre, said payroll tax regulations were a tax on jobs and discouraged restaurants from expanding.

“People are looking to expand, but they decide not to when they hit the threshold.”

Mr Sfera called for the payroll tax threshold to be raised to more than $750,000, but also look at offering incentives to hire more staff.

“I don’t understand why South Australia is not doing more to incentivise business,” he said.

Frank Favaro, the owner of Chianti Classico in Hutt St, said high land taxes were another common burden borne by restaurants.

He said restaurants were forced to pass it on to customers in increased prices or absorb the tax, reducing thin revenue margins further.THE hospitality industry wants an urgent overhaul of payroll and land taxes to help it survive.

Restaurant & Catering SA chief executive Sally Neville said the current payroll tax threshold, which applies to companies with wage bills above $600,000, was too low.

She said it was an added burden on restaurants and caterers during this tough economic environment, as more eateries close than open because South Australians choose to stay home rather than eat out.

“An industry like ours is highly labour-reliant and has much higher labour bills than other industries,” she said.

“This is at a point in time when there are more businesses closing than opening in our sector.”

A state parliamentary committee is conducting a comprehensive tax review and results are expected to be announced towards the end of this year.

Restaurateur Michael Sfera, the general manager of Sfera’s Park Suites and Convention Centre, said payroll tax regulations were a tax on jobs and discouraged restaurants from expanding.

“People are looking to expand, but they decide not to when they hit the threshold.”

Mr Sfera called for the payroll tax threshold to be raised to more than $750,000, but also look at offering incentives to hire more staff.

“I don’t understand why South Australia is not doing more to incentivise business,” he said.

Frank Favaro, the owner of Chianti Classico in Hutt St, said high land taxes were another common burden borne by restaurants.

He said restaurants were forced to pass it on to customers in increased prices or absorb the tax, reducing thin revenue margins further.

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