The Andrews Labor Government’s payroll tax exemption is set to be a shot in the arm for thousands of trainees and apprentices, and a boost for Victorian jobs and growth.
Recognising the importance of trainees and apprentices completing qualifications, the Victorian Budget 2016/17 included a payroll tax exemption for employers on the wages of displaced apprentices and trainees.
Between 4,000 to 5,000 apprentices and trainees are displaced from their training each year. It is estimated that there were approximately 1,300 payroll tax-paying businesses who hired displaced apprentices and trainees across Victoria in 2015.
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 across Victoria.
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 over four years, with the incremental raising of the tax-free payroll threshold from $550,000 to $650,000.
Quotes attributable to Treasurer Tim Pallas
“We’re providing these incentives to businesses so Victorians get the best opportunity to complete their qualifications and secure well-paid jobs.”
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 Victorian Chamber of Commerce and Industry Chief Executive Mark Stone
“The payroll tax exemption will encourage Victorian businesses to re-engage with displaced apprentices and trainees, fostering business growth and providing meaningful employment opportunities.”
Reviewed 19 August 2020