Local businesses in Geelong are set to receive a tax free boost from the Andrews Labor Government’s cuts to payroll tax which will help create jobs.
In a massive boost to regional economies, the Victorian Budget 2017/18 handed down by the Treasurer Tim Pallas this week, will reduce the payroll tax rate by 25 per cent in regional Victoria – from 4.85 per cent to 3.65 per cent for all businesses operating mostly in regional Victoria.
This will give business in regional Victoria the lowest tax rate in the country.
This will slash costs for about 4 000 businesses across Victoria, support companies in regional Victoria to grow, encourage job creation, and ensure every region shares in the benefits of the state’s economic growth.
There are an estimated 800 businesses in the Geelong and broader Barwon region that will benefit from the regional payroll tax cut.
This regional payroll tax cut is on top of other business tax cuts announced in the Budget, with the government bringing forward the timeline of last year’s payroll tax cuts.
The payroll tax-free threshold will now increase to $625 000 as of 1 July this year, and to $650 000 from 1 July 2018, in a fast-track of changes set to save business up to $48 million and create new jobs.
The Government is also allowing more small businesses to opt for an annual payroll tax payment instead of monthly payments. Extending the annual payment threshold from $10 000 to $40 000 cuts red tape and increases cash flow flexibility for thousands of businesses across Victoria.
Agri-businesses will also benefit, with the Budget removing insurance duty on agricultural products, making it cheaper for farmers to insure against crop, livestock and equipment damage.
Quotes attributable to the Treasurer Tim Pallas
“We’re making sure that every region shares in Victoria’s economic success – and a 25 per cent reduction in payroll tax for regional Victorian businesses will boost local economies and grow jobs.”
Quotes attributable to Member for Geelong, Christine Couzens
"This tax cut will be a massive boost for Geelong, and will help local businesses do what they do best – building their businesses and create local jobs."
Quotes attributable to Member for Lara, John Eren
"Labor's new regional tax cut will help our local businesses grow, and encourage more businesses to set up shop and create jobs right here in the Geelong region."
Quotes attributable to Member for Bellarine, Lisa Neville
“This measure will be shot in the arm for the Geelong economy, boosting jobs and growing businesses, helping us share in the success of the Victorian economy.”
Reviewed 19 August 2020