Business NSW is calling for payroll tax relief in next month's state budget, saying this will boost jobs growth across the state.
In a pre-budget submission, the lobby group proposes the introduction of an automatic payroll tax rebate, based on taxable payrolls recorded during the COVID-19 period.
"The federal budget rightly supported a business-led jobs recovery, and businesses will now be looking for similar support in the form of payroll tax relief in the state budget," Business NSW Chief Executive Nola Watson said in a statement on Tuesday.
"It's inconsistent for the federal government to provide incentives for businesses to hire staff while the NSW government taxes those newly created jobs."
Ms Watson cited internal data showing that 86 per cent of businesses located in a CBD who rely on foot traffic believe they will be at risk when coronavirus support measures end.
A payroll tax rebate could flow automatically to employers without them having to apply, complementing the federal government's jobs push.
"More needs to be done to reduce the economic impact by making some risk-based changes to current restrictions," Ms Watson said.
The group also wants changes in transport protocols and public health orders to give employers and staff the confidence to return to the office, particularly in the Sydney CBD.
NSW Treasurer Dominic Perrottet will hand down his budget on November 17.
