The new amendment, a Throne Speech initiative, means taxi operators will now pay $600 instead of $1,000 per annum per vehicle.
In the Upper House today, Senators discussed the “Payroll Tax Amendment No.2 Act 2024” which includes a new tiered system for minibus operators.
It is based on seating capacity which was amended receiving support from Independent Senator John White and Opposition Senators Robin Tucker and Dwayne Robinson.
Government Senator Arianna Hodgson, the spokesperson for Finance, said the new structure is designed to streamline payments for improved efficiency.
Senator Hodgson explaining the new tiered payroll system for minibus drivers said, ” Minibuses with a seating capacity of up to 15 passengers will incur an annual payroll tax of $750.”
“Tier-2 minbuses with a seating capacity between 16-24 passengers will incur an annual payroll tax of $1,000. And finally, in tier 3, minibuses with a seating capacity of more than 24 passengers will incur an annual payroll tax of $1,500.”
Senator Hodgson added that this change represents a simplified payroll tax system as a step forward in improving efficiency within the public service vehicle sector.
However, Vice President of the Senate Kiernan Bell argued that taxi operators will now pay a capped fee and will essentially be treated differently to other self-employed workers citing contractors, and cleaners.
She suggested the tax system should be equitable based on revenue generation not on the nature of the work itself.
