iscoverThe NSW opposition has committed to reinstating the ‘Business Connect’ program for small businesses and easing payroll tax pressure.
Business NSW backs opposition’s call to revive business program, ease payroll tax
08 September 2025
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8 minute read
On Thursday (4 September), the NSW Liberals pledged to bring back the Business Connect program for the state’s small businesses, a move that has been welcomed by business advocates.
The program, axed by the Minns Labor government, was a free advisory service which originally helped around 60,000 small businesses in NSW and created more than 40,000 jobs.
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Mark Speakman, NSW opposition leader, said a Liberal and National government would commit to bringing the program back to help grappling small businesses.
Speakman said the Minns Labor government’s decision to axe the program could be “the final nail in the coffin for many already struggling small businesses”.
“We all know how important small business is to the NSW economy – they’re the backbone of local communities,” he said.
“In regional areas the majority of local enterprises are small businesses: family-run, owner-operated and deeply connected to the community. Together, they sustain thousands of local jobs.”
In addition to this, following widespread conversation surrounding payroll tax, NSW Treasurer Damien Tudehope, said the opposition would also consider fairer payroll tax settings to support SMEs to cut the pressure on employers, keep prices down for consumers and give businesses “breathing room”.
On the announcement, Business NSW noted it backed this pledge to reinstate the program and ease payroll tax pressure, yet warned urgent bipartisan action was needed to fix the state’s “broken workers’ compensation system before businesses were forced to close”.
Daniel Hunter, chief executive of Business NSW, said the opposition's stance on the Business Connect program and payroll tax could deliver practical solutions for SMEs.
“Business Connect is the only free, tailored advisory service available to small businesses in NSW. It never should have been cut. We support the Opposition’s call to reinstate this program and urge the government to immediately restore funding for this financial year,” he said.
Business NSW said while it supported the plans for fairer payroll tax settings, the workers’ compensation system needed to be the most urgent priority as it required both sides of politics to act swiftly together.
The advocacy body pushed for the amendment as a survey it had conducted found one in five businesses said they would be forced to shut if premiums kept rising unchecked.
Hunter said the payroll tax rate needed to be cut from 5.45 per cent to below 5 per cent, the threshold needed to be raised to at least $1.5 million and needed to be indexed annually to CPI to avoid bracket creep.
“Freezing payroll tax thresholds is pushing more small businesses into the tax net every year, hampering their ability to grow and hire,” he said.
“We support fairer payroll tax settings that give the 52,000 businesses that pay this tax the breathing space to invest and create jobs. However, this debate has dragged on for too long. Bipartisan action can’t wait. If we don’t fix workers’ compensation now, more businesses will close and jobs will be lost.”
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