The Liberal’s pledge to cut the current payroll tax rate of 2.425% for qualifying businesses in regional Victoria to just 1.0% has been welcomed by business in the Shepparton district.
The new rate under a Liberal Government will be less than one-quarter of the standard 4.85% rate and is the lowest payroll tax rate in Australia.
Gouge Linen Services Director, Rob Priestly, has welcomed the commitment to cutting taxes for regional business, acknowledging that in an environment of skyrocketing costs such as energy prices, this will assist business to remain competitive.
“A 1% payroll tax for regional Victoria is a fantastic initiative. It makes regional business more competitive and will drive regional development and job growth. At a time of rising costs this would be a great assistance to our business.”
Liberal Candidate for Shepparton, Cheryl Hammer, said the Liberal’s comprehensive plan for decentralisation includes incentives for economic development in regional Victoria.
“That’s why a Liberal Government will cut payroll tax in regional Victoria to just 1.0% for all businesses under the existing eligibility criteria for the concessional rate. Our tax cut is expected to save around 4,000 businesses an average of $11,633 a year, many of these businesses are in our region and have applauded the tax relief policy,” Cheryl said.
Around 4,000 regional businesses qualify for the concessional payroll tax rate. The qualifications include that at least 85% of the payroll must be comprised of Victorian wages associated with regional employees and that the employer is based in regional Victoria.
Shadow Treasurer, Michael O’Brien, said “Before the last election Daniel Andrews promised he wouldn’t increase or introduce new taxes. Since then he has broken that promise 12 times. Victoria is now the highest taxed state in Australia.
“Payroll tax is a tax on jobs. The Liberal Nationals will slash payroll tax in regional Victoria to just 1.0%, to provide more incentives to create jobs in our regions and to decentralise growth.
“The Liberals will still review our tax system to identify further barriers to decentralisation, but this policy shows that we are serious about growing the whole of the state, not just Melbourne.”