Western Australia's business lobby group has welcomed hints from the Premier Colin Barnett that he will provide payroll tax relief measures if re-elected.
The Chamber of Commerce and Industry has been calling on the State Government to lift the threshold for payment of the tax from $750,000 to $1.5 million dollars.
Colin Barnett says he will announce relief measures later in the campaign.
CCI chief executive James Pearson says that will give hope to many small businesses.
"Anyone who is serious about leading the next government of West Australia needs to show that they're serious about meeting the concerns of small business," he said.
"Their key concern in this election is the need to lift the threshold at which payroll tax kicks in and let them get on with hiring more workers and growing their business."
Mr Pearson says the Government can afford the payroll tax relief measures, given the amount collected over the last 10 years has gone up from about $900 million to $3.3 billion a year.
"Now we don't expect them to kick that habit straight away, but surely they can give some relief to small businesses which are being unfairly penalised for wanting to grown their business and employ West Australians," he said.
Last year's state budget included a one-off rebate for about 7,000 businesses across WA.
Yesterday, Mr told the ABC he is looking at more permanent measures as part of the election campaign.
"Our constraint is our revenues are very much limited by cuts in our GST," he said.
"So, I'd like to see the threshold raised and I'd like to see the rate cut as permanent relief.
"Now, we probably won't be able to go as far as I'd like to but we do hope to be able to provide some relief for small business."
Mr Barnett said he wanted to see long term change.
"I'd love to be able to get rid of payroll tax but that is just unrealistic," he said.
"What we do want to see is to make more long term reform that involves raising the threshold and ultimately reducing the rates but any details of that will be announced later in the campaign."