BALLARAT businesses saved $7 million in the last financial year due to cuts to payroll tax.
Regional businesses have been the big winners since payroll tax was cut by 50 per cent.
The first cut from 4.85 per cent to 3.65 per cent, came into effect on July 1 last year while a further cut was introduced from just last month to 2.425 per cent – making the regional rate half the metropolitan rate.
Businesses across Victoria are estimated to have saved around $114 million on payroll tax since July 1 last year, including more than $48.4 million as a result of successive increases in the payroll tax threshold.
Regional businesses are tipped to have saved $65.9 million since July last year.
Treasurer Tim Pallas said since 2014, there had been more than 45,000 jobs created across the state due to the cuts in payroll taxes.
“We have now cut payroll tax three years in a row for regional Victoria – helping support local businesses grow, strengthen local communities and create more jobs.”
“Victoria has the lowest regional payroll tax rate in the nation, saving regional businesses millions and ensuring our regional areas are great places to do business.”
Owner of Red Lion David Canny told The Courier recently in real terms it meant his payroll tax would fall from more than $70,000 a year to the mid $30,000s.
“For a business our size, which employs about 60 people, it will mean more wages and more opportunity to employ staff,” Mr Canny said.
“Businesses like ours hate paying payroll tax. It’s a tax to employ when we should be encouraging more employment.
“Obviously the government is reliant on that money so it’s great they’ve been able to reduce that over the last two years.”
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