Businesses In Geelong Set To Save Millions In Payroll Tax

Hundreds of businesses in the Greater Geelong region have already claimed more than $9.8 million in payroll tax savings, making it easier for businesses to create jobs.

While many businesses are yet to submit their annual payroll tax return, more than 400 businesses in the Greater Geelong region have already claimed savings on their payroll tax liabilities.

The Andrews Labor Government has slashed the payroll tax rate for regional businesses by 50 per cent in two years. First from 4.85 per cent to 3.65 per cent – which came into effect on 1 July 2017.

A further cut will be introduced from 1 July, bringing it down to 2.425 per cent – half the metropolitan rate.

In its first year of operation, more than 2,000 businesses across regional Victoria have already taken advantage of the payroll tax cuts, which are expected to save regional businesses around $41 million this financial year.

A further 2,000 regional businesses that pay payroll tax annually may be eligible to benefit from this reduction.

As a result of these tax cuts, regional Victoria will have the lowest payroll tax rate in Australia.

Businesses across Victoria have also benefitted from successive increases to the payroll tax-free threshold.

From  1 July, the threshold will rise again to $650,000, providing further savings for tens of thousands of Victorian businesses.

Quotes attributable to Treasurer Tim Pallas

“Businesses in the Greater Geelong region are looking at a multi-million-dollar boost thanks to the Andrews Labor Government – slashing the regional payroll tax rate for the second time in a row in this year’s State Budget.” 

“We’re helping regional Victoria thrive, and this important initiative is supporting local businesses to grow and employ more local workers.”

“Victoria can proudly say we will have the lowest regional payroll tax rate in the nation, saving regional businesses millions and ensuring our regional areas are great places to do business.”