The Canberra Business Chamber says businesses will have a sense of short-term relief following Chris Steel’s first Budget.

“There are no changes to payroll tax in the next financial year, which is good news for a business sector that is challenged by economic conditions,” Canberra Business Chamber Chief Executive Greg Harford said today. “Although we are concerned about the impacts of payroll tax changes, we are pleased that the Government has provided a year’s notice for businesses to adjust.

“More businesses will be caught in the payroll tax net from 1 July 2026 with firms now needing to pay the tax if their wage and salary bill is more than $1.75 million nationally (down from $2 million).

“At the same time, the rate paid will fall slightly to 6.75 per cent for those businesses with a national payroll of $20 million or less, down from 6.85 per cent. There is no change to rates for larger firms, which ranges from 6.85 per cent (for payrolls of $20-$50m), 7.25 per cent for firms with payrolls between $50-$100m, and 7.75 per cent above $100m. While this is good news for some businesses, the bad news for others is that they will be caught in the payroll tax net for the first time.

“The Canberra Business Chamber supports the funding provided for the scoping and planning of the new Convention Centre. This new facility is important for future development and growth of the visitor economy, and will help position Canberra to deliver its role as the Nation’s Capital.”

“Overall, it is good news that the Budget forecasts a return to surplus from 2027/28. Long-term though, the Chamber does want to see changes to make Canberra a more attractive place to do business. Ultimately, we need to grow pie so that there is a broader pool of businesses and consumers to support the economy.”