NSW launches $250m scheme to poach Victorian jobs

The NSW Government will provide $250 million-worth of financial incentives for companies to relocate their head office to the state or take on additional staff in NSW.

Specifically, companies that create at least 30 new jobs in the state will be exempt from payroll tax for the next four years. The scheme will target companies that are based interstate and overseas, and the government hopes it will attract some 25,000 jobs.

Victoria-based businesses are seen as a key target for the scheme, given the impact of COVID-19 and the resultant lockdown on the state’s economy:

NSW Premier Gladys Berejiklian said the recovery from the COVID-19 recession was an opportunity to poach jobs from interstate – most likely Victoria and Queensland – and overseas, citing lockdowns and border closures as reasons why companies wanted to move their headquarters to her state.

Announcing $250 million in payroll tax breaks for interstate or overseas companies moving or expanding into NSW, Ms Berejiklian said on Thursday her government had received inquiries from outfits around Australia who were considering making the move.

Ms Berejiklian and her Treasurer Dominic Perrottet said they hoped the policy would lure up to 25,000 jobs to NSW…

“Businesses in other states are extremely frustrated with lockdowns and also with their state governments having borders closed. They are legitimately looking to move to NSW,” she said.

“What the Treasurer and I wanted to do is provide the incentive to do that.”

NSW has undoubtedly handled the COVID-19 pandemic far better than Victoria. It kept its economy open despite receiving many infections from Victoria at the beginning of its second wave and managed to suppress cases via superior contact tracing.

NSW has also taken around half of the nation’s international arrivals through its hotel quarantine system without an outbreak.

My belief is that Victoria is facing a re-run of the early-1990s when it was considered a laggard and experienced significant outward migration to other states.

Unconventional Economist

Comments

  1. Chairman Dan is anti business and pro-CCP. We have moved out of the state. Not sure who would want to setup a proper business down in that hell hole

    • jalzz

      Well said jalzz. After Metro Tunnel (part Chinese owned) building a traffic island to block our loading bay, the council charging horrific rates, the SRO charging ridiculous land tax, WorkSafe running 4 inspections to identify ridiculous issues (whilst they should have been at Hotel Quarantine) the council prohibiting us from pulling into our loading bays, then Andrews shutting the whole place down except for his payroll for which he gave pay rises- I feel exactly the same!!!

    • Yes and no.

      I get the spirit of competitive federalism but remember … Melbourne stole the GP from Adelaide, and the Australian Open tennis from Sydney (it used to be split hosted around the country – white city hosting regularly).

      And as Diego Maradonna once famously said – “For me, it was like stealing from a thief: it’s no crime in my opinion”

  2. One good policy I have always put forward to my 4 year old daughter, is subsidising companies to bring jobs back from overseas (have call centres in regional locations), would create jobs and move people out of metro areas. But she didn’t get it

    • Shades of MessinaMEMBER

      The Greens and Labour would have a field day for this racialist policy.

      FWIW, the last 5 calls I have made to an Aussie corporate have been handled locally and the service was great.

    • You don’t have to subsidise this, you just don’t give them a deduction for their offshore wages.

  3. Hahahaha, they could get really serious and lock down the borders properly and only allow transit for 2 reasons
    1. Job offer or company relocation.
    2. Permanent migration to NSW

    CCP Dan would counter by locking us al down again to 25km and fining anyone who moves.

    Not an expert on constitutional law but surely all this border politics and interstate rivalry breaks some sort or laws.

    • Diogenes the CynicMEMBER

      Not according to the High Court – Palmer and the Scomo/Porter/Libs lost their court case on WA’s hard border being unconstitutional.

  4. Ms Berejiklian and her Treasurer Dominic Perrottet said they hoped the policy would lure up to 25,000 jobs to NSW…

    “hoped”. Jaysus, wouldn’t you want to be a bit more certain before shelling out a quarter of a billion dollars?

  5. NSW payroll tax is 5.45%. Do you have 300+ employees making a fair bit more more than minimum wage? Congrats, hire 30 people to do ABSOLUTELY NOTHING for the next 4 years and you will come out ahead financially. What a dumbass policy this is.