NSW firms rank taxes first as job cuts outpace hiring
Business confidence reached -65.0, with negative readings across every region and industry.
Taxes, levies and public charges remained the leading cost concern for NSW firms for a second straight quarter, Business NSW’s September 2026 report found. Nearly one-third of respondents reduced their workforce during the previous quarter. By comparison, 12 per cent took on employees. The confidence measure was -65.0, and results were negative in all regions and industries.
Employment plans also remain subdued. One in five respondents anticipates reducing staff during the coming three months, while 12 per cent plans to recruit. When asked to identify one priority for the NSW Government, 35 per cent selected lower taxes and charges. Another 18 per cent wanted fewer barriers to employing people.
The NSW Liberals and Nationals have responded with a payroll tax proposal. It would increase the tax-free threshold to $1.5 million from $1.2 million. A 4.75 per cent rate would apply to the initial $10 million of payroll, replacing the existing 5.45 per cent rate. Both the threshold and the payroll band would be adjusted annually using Sydney CPI. Opposition Leader Kellie Sloane, Nationals Leader Gurmesh Singh and Shadow Treasurer Scott Farlow said the changes would ease pressure on employers and reduce the tax cost attached to adding workers.
- 35 per cent chose lower taxes and charges as the government’s top priority.
- 18 per cent sought simpler employment requirements.
- One in five firms expects to reduce staffing during the next three months.
Summarized from the reporting above. Read it for the full story.
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