Jobs will be the centrepiece of an elected Liberal Government with the announcement of the biggest reform to payroll tax in a generation.
Under the Liberals Local Business Action Plan, around 15,000 Victorian small businesses will be removed from the payroll tax system – a system which is a tax on jobs.
Small businesses in Casey and Cardinia pay too much tax – and the bigger they grow, the more Victorians they employ, the more they pay. The Local Business Action Plan means a saving of up to $43,650 each year on payroll tax for small business.
Under the plan, a Liberal Government will increase the threshold at which a business is liable to pay payroll tax to $1.6 million.
The current payroll tax threshold in Victoria ($650,000, scheduled to increase to $700,000 in 2022-23) is the worst of any Australian state or territory. Our reform will make Victoria the most competitive state for small business payroll tax.
The Liberals payroll tax reform plan ensures:
- Businesses won’t pay a cent of payroll tax until their wages bill is greater than $1.6 million
This takes approximately 15,000 businesses out of the payroll tax system entirely.
- No business will pay the full rate (4.85%) of payroll tax until their wages bill reaches $2 million
Payroll tax would be phased in gradually between $1.6 million and $2 million – ensuring no business is hit with a sudden tax hike as they employ more Victorians.
- All businesses, regardless of their total wages bill, subtract $800,000 from their assessable payroll when determining tax liability
All Victorian businesses will have certainty that under a Liberal Nationals government, they will pay less payroll tax.
|Under Labor*||Under the Liberal Nationals||Saving|
|Payroll of $800,000||$4,850||$0||$4,850|
|Payroll of $1.6 million||$43,650||$0||$43,650|
|Payroll of $2.5 million||$87,300||$82,450||$4,850|
* baseline of $700,000 payroll tax threshold as scheduled under Labor policy from 2022-23
While the Andrews Labor Government has no plan for small business recovery, the Victorian Liberal Nationals will remove tax, reduce fees and rally behind small business.
Under the Liberal’s Local Business Action Plan a number of local government fees will be frozen.
These fees include footpath and road occupation fees, fees on hairdressers and beauty businesses, fees on food businesses, and fees on accommodation providers.
In addition to payroll tax cuts and frozen government fees, eligible small businesses will be able to claim up to $1,500 in state and local government fees and charges.
Examples of fees and charges covered include food authority licences, liquor licences, trade licences, event fees, outdoor seating fees and council rates.
Our Local Business Action Plan will help get Victoria back on top by backing local business, local jobs and local success.
Comments attributable to Brad Battin MP- State Liberal Leader for Gembrook
“Under Labor, Victoria has the worst small business payroll tax in the country- we want to turn this around”
“Our local small businesses are fundamental to keeping Casey and Cardinia strong and supporting our local economy. Business owners find payroll tax as a handbrake on employing people.
“The Liberals will continue to fight for small businesses in Casey and Cardinia and will be relentless in creating the most attractive state in our country for small business to start up, grow and employ Victorians.
“Only a Liberal government will slash payroll tax for small business to create more jobs to get Victorians back to work.”