Tax changes open more doors for business to grow

Bringing forward the tax-free threshold will result in an additional total saving of $48 million for around 38,000 businesses across the state.
Bringing forward the tax-free threshold will result in an additional total saving of $48 million for around 38,000 businesses across the state.

This is advertiser content from the Victorian Government

Victorian regional businesses are set to benefit from payroll tax reforms announced in the 2017-18 Budget, providing substantial financial relief to thousands of businesses.

Around 4,000 regional businesses are now eligible to pay a lower payroll tax rate.

The payroll tax rate for regional businesses has decreased by 25%, making it one of the lowest payroll tax rates in Australia. This is set to save regional businesses around $41 million in 2017-18.

Additionally, the payroll tax-free threshold increased to $625,000 from 1 July 2017, an increase of $50,000 on the tax-free threshold applied in the previous year. This fast-tracks changes to the tax-free threshold announced in the 2016-17 Budget.

From 1 July 2018, the threshold is set to increase again to $650,000, alleviating hundreds more businesses from paying payroll tax in the 2018-19 financial year.

Bringing forward the tax-free threshold will result in an additional total saving of $48 million for around 38,000 businesses across the state.

It is a substantial boost for businesses looking to expand and diversify their operations in a state that already boasts the fastest job growth in the country.

Treasurer Tim Pallas says the Labor government’s aim remains to create jobs and prosperity for Victorians throughout the state.

Treasurer Tim Pallas handing down the budget.

Treasurer Tim Pallas handing down the budget.

“These important reforms are a win for thousands of Victorians, allowing businesses to grow and create jobs,” he says.

“The Andrews Labor Government continues to get on with the job – making our economy stronger and fairer for all Victorians.”

The farming and agricultural community will also benefit from the removal of insurance duty on agricultural products, a financial benefit for farmers insuring against crop, livestock and equipment damage.

Payroll tax exemptions for employers of re-employed trainees and apprentices also apply, to encourage businesses to re-employ young people looking to complete their qualifications.

This is advertiser content from the Victorian Government.