Payroll tax change 'will have no benefit' State Treasurer Troy Buswell has promised to lift the payroll tax threshold for WA business. SMALL business owners will be no better off under a plan by the Liberal Party to raise the payroll tax threshold by $100,000, according to the states business lobby group. In what could be seen as a slap in the face for thousands of small business owners struggling to make ends meet, Treasurer Troy Buswell told a business forum this morning a re-elected Liberal Party would lift the payroll tax threshold from $750,000 to $850,000 over three years. The threshold will rise to $800,000 in 2014-15 and then $850,000 in 2016-17 costing the state $30 million to start before reaching $60 million. It is a long way short of the Chamber of Commerce and Industry WA's demand for the threshold to be increased to $1.5 billion. CCIWA, along with a variety of business groups in the state, argue the tax is just another burden on small businesses doing it tough - claiming it is stifling growth and sending employment offshore. CCIWA chief economist John Nicalou said the announcement would have no benefit for the state's small businesses who were struggling to keep up with the strong wages growth. "The increase in the payroll tax threshold, to $850,000, doesn't equate to anything real by way of reform," he said. If you take into account wages growth over the next three years the net benefit will be zero for business and that's really disappointing. One small business owner at the forum called the announcement a "small commitment." "In the current employment environment that equates to one employee, you are imposing payroll tax on businesses that employ around about 11 employees," he said. The tax was never intended for businesses at that level. The payroll tax, currently, is an insidious tax and it stops business growth and it stops employment. And with the greatest of respect $850,000 is far short of the mark - $1.5 billion, indexed to CPI, is more realistic and more visionary. Mr Buswell called the move the Liberal Party's "first step" in payroll tax reform, but refused to detail what the party's next step would be. "Everything we do cost money," he said, "we are trying to balance a whole range of competing interests as part the election campaign, as part of the budget cycle. We felt it was important to start the tax reform process - I mean nothing has happened in and around payroll tax for around ten years. Despite today's announcement, shadow treasurer Ben Wyatt said his party would not be offering a similar tax cut because it would be irresponsible as it would be funded by debt. "The time to deliver significant payroll tax reform was during the last term of government," he said. The reason why I haven't matched that commitment this morning is simply because we face a situation with high debt, high demand for infrastructure - and Labor has already identified $4 billion in savings - and we consider to debt fund a tax cut at this point would be irresponsible. Mr Wyatt previously told The Sunday Times the party was "keen" to increase the tax but was unable to offer any tax relief because of the tight budget.