(Bloomberg) -- Australia’s government will call on states to eliminate payroll taxes as part of the nation’s efforts to jump-start the economy and create jobs, Treasurer Josh Frydenberg said in an interview with the Daily Telegraph.

“I’d love the states to get rid of the payroll tax,” he said. They “have also got their own balance sheets, and their own economic capacity, and we’ve already announced very significant support, and will continue to look at opportunities, but the states will be required to do more I suspect going forward as well.”

The government’s coronavirus recovery plans will involve changes to taxes on income, and for small and medium businesses, Frydenberg said in the interview. The proposals are expected to be finalized ahead of the government’s annual budget release in October, he said, according to the report. The Treasurer is also looking at reforms that would make it easier for small businesses to borrow, he told the Telegraph.

New South Wales Treasurer Dominic Perrottet said earlier this month he was considering altering payroll taxes in his state as part of a major overhaul of the local taxation system.

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