Businesses in Ballarat are saving millions thanks to the Andrews Labor Government’s regional payroll tax cuts, with more savings on the horizon.
New data out today shows 422 Ballarat businesses are forecast to share in $14.8 million in savings just this financial year, after the payroll tax rate was slashed to 2.425 per cent in 2018.
They’re among 4,400 businesses across regional Victoria to share in an estimated $154 million in savings, which includes more than $31 million saved in Greater Geelong and $11 million in Bendigo.
The Labor Government is making it easier to do business in regional Victoria – and in turn supporting local jobs – by cutting regional payroll tax to just a quarter of the metropolitan rate, phased in over three years.
From 1 July, the regional payroll tax rate will be cut by 0.4 percentage points each year until it hits a quarter of the metro rate in 2022-23 – making it the lowest payroll tax rate in Australia.
The Labor Government has also relaxed the eligibility requirements so that more businesses can access the regional tax rate even if their business is registered in the metro area or interstate.
They now qualify as long as 85 per cent of their wages are paid to staff working in regional areas.
Victoria’s regional unemployment rate remains consistently low, at 3.7 per cent in the three months to December – the lowest in the nation and well below the national average.
Across the state, more than 23,000 people found a job in regional areas during this period – an increase of 3.3 per cent, the highest growth in the country.
Quotes attributable to Treasurer Tim Pallas
“In just a few months’ time, we’ll be cutting the payroll tax rate again to 2.02 per cent – less than half the metropolitan rate.”
“We’re giving regional businesses the security they need to keep creating jobs, with a fairer tax system that spreads the benefits right across the state.”
Quote attributable to Member for Wendouree Juliana Addison
“These tax cuts have delivered huge savings for Ballarat businesses – they’re already paying less on their payroll tax bill and more savings are on the way.”
Quote attributable to Member for Buninyong Michaela Settle
“This is about making business a little easier for regional employers, so they can continue supporting local jobs and the local economy.”
Reviewed 29 June 2020