The Andrews Labor Government is getting on with its plans to slash payroll tax for local businesses and other vital reforms that will make it easier for thousands of Victorians to buy their own home.
Under the Labor Government reforms, which will be introduced into Parliament this week, the payroll tax-free threshold will increase to $625,000 as of 1 July this year, and to $650,000 from 1 July 2018 – a change that is set to save about 38,000 Victorian businesses up to $48 million.
The payroll tax rate will also be reduced by 25 per cent in regional Victoria – from 4.85 per cent to 3.65 per cent. This significant reduction will benefit about 4,000 businesses in our regions and make regional Victoria’s payroll tax rate the lowest in the country.
Farmers won’t miss out either with the removal of insurance duty on agricultural products, making it cheaper for farmers to insure against crop, livestock and equipment damage.
The Bill also includes significant changes to make buying a house more affordable, including the abolition of stamp duty for first time buyers on homes up to $600,000 and cuts to stamp duty on homes valued up to $750,000.
The First Home Owner Grant will be doubled to $20,000 in regional Victoria to make it easier for people to build and stay in their community. The Bill also contains provisions that allow Victorian members of the Australian Defence Force to meet eligibility criteria for the First Home Owner Grant.
Off the plan stamp duty concessions for investment properties will be abolished, along with the introduction of a vacant residential property tax to address the number of properties being left empty across the inner and middle suburbs of Melbourne.
It’s time for the Liberal Party to stop playing politics and pass the Bill, which will put the dream of home ownership in the grasp of more Victorians and save local businesses thousands of dollars a year.
Quotes attributable to Treasurer Tim Pallas
“We are getting on with these vital reforms that will slash payroll tax for local businesses and make it easier for thousands of Victorians to buy their own home.”
“The Liberal Party need to stop playing politics and pass these reforms – which are good for business, good for our economy and good for Victorians – wherever they live.”
Quotes attributable to Minister for Regional Development Jaala Pulford
“This is a win for first home buyers in regional Victoria, and it’s a win for local jobs too. By doubling the grant for first home buyers and slashing payroll tax for business, we’re giving regional Victorians even more reason to stay.”
Reviewed 19 August 2020