Businesses in regional Victoria are saving millions – thanks to the Andrews Labor Government’s regional payroll tax cuts, with more savings on the horizon.
Member for Northern Victoria, Mark Gepp MP said more than 4,400 businesses in regional Victoria – including 812 in Northern Victoria – are forecast to share in $154 million in savings just this financial year.
It includes savings of more than $2.5 million in Swan Hill, $6.5 million in Mildura and $10.6 million saved for Greater Shepparton businesses.
The Labor Government is making it easier to do business in regional Victoria – and in turn supporting local jobs – by cutting regional payroll tax to just a quarter of the metropolitan rate, phased in over three years.
For the current financial year, it sits at 2.425 per cent – half the metro rate.
From 1 July, the regional payroll tax rate will be cut by 0.4 percentage points each year until it hits a quarter of the metro rate in 2022-23 – making it the lowest payroll tax rate in Australia.
That’s on top of the cut the Government made in July 2018, which brought the regional rate down from 3.65 per cent to the current rate.
The Labor Government has also relaxed the eligibility requirements so that more businesses can access the regional tax rate even if their business is registered in the metro area or interstate. They now qualify as long as 85 per cent of their wages are paid to staff working in regional Victoria.
Bushfire-affected businesses are receiving extra assistance, including:
- Immediate payroll tax reduction to a quarter of the metro rate
- Waiving of water rates for 12 months for businesses destroyed or significantly damaged by fire
Victoria’s regional unemployment rate remains consistently low, at 3.7 per cent in the three months to December – the lowest in the nation and well below the national average.
Across the state, more than 23,000 people found a job in regional areas during this period – an increase of 3.3 per cent, the highest growth in the country.
Quotes attributable to Mark Gepp MP, Member for Northern Victoria
“This means that over $26 million will stay in the Northern Victorian economy. It means 812 business owners across Northern Victoria will have extra money to invest back into their business – like upgrades to their premises or equipment, purchase more stock or employ more staff. It’s a win for everyone.”
“I know from talking with people that the regional areas are doing it tough during the drought – but for every small to medium business that pays regional payroll tax, these changes have meant thousands of dollars in savings back in the pocket of businesses and pumped back into the community.”
“This is about supporting businesses right across our state so they can continue supporting local jobs and economic growth in the region.”
Quotes attributable to Treasurer Tim Pallas
“These tax savings are worth thousands of dollars to thousands of businesses – it’s about making life easier for regional employers.”
“In just a few months’ time, we’ll be cutting the payroll tax rate again to 2.02 per cent, less than half the metropolitan rate.”
“We’re giving regional businesses the security they need to keep creating jobs, with a fairer tax system that spreads the benefits right across the state.”
