- Published:
- Thursday 12 May 2016
The Andrews Labor Government’s payroll tax exemption will be a shot in the arm for thousands of trainees and apprentices right across regional Victoria.
Recognising the importance of trainees and apprentices completing qualifications, the recent Victorian Budget 2016/17 included a payroll tax exemption to employers of displaced apprentices and trainees.
It is estimated the exemption will encourage the 130,000 businesses in regional Victoria to re-employ apprentices and trainees who wish to complete their qualifications. It will be available from 1 July 2016.
Between 4,000 to 5,000 apprentices and trainees are displaced from their training each year. In 2015, approximately 1400 recommenced apprentices and trainees found work with employers in regional areas.
Ensuring that apprentices and trainees are provided with the opportunity to complete their qualifications also strengthens confidence in the value of Victoria’s training programs.
Further demonstrating the Labor Government’s investment in skills and training, the Budget provided $116 million to establish 10 new tech schools, including in Gippsland, Ballarat, Bendigo, and Geelong.
The Budget also provided the first increase in the payroll tax threshold since 2002, keeping many small businesses out of the payroll tax net, and relieving pressure on business owners and encouraging jobs growth.
Approximately 36,000 individual businesses across Victoria will benefit from a $286 million payroll tax cut, with the incremental raising of the tax-free payroll threshold from $550,000 to $650,000.
Quotes attributable to Treasurer Tim Pallas
“The Andrews Labor Government understands the importance of training and skills in a people-powered economy, which is why we’re providing incentives to businesses to give Victorians the best opportunity to complete their qualifications.
Quotes attributable to Minister for Training and Skills Steve Herbert
“Apprentices and trainees are the backbone of Victoria’s training system and the future of our workforce. We’re giving them every opportunity to get the skills they need for the jobs they want.”
Quote attributable to Member for Eastern Victoria Daniel Mulino
“We are reducing the payroll tax burden for employers and boosting their ability to expand, hire more staff – helping with jobs growth and investment throughout regional Victoria.”