Monday, 22 May 2017

Local businesses in Gippsland will benefit from the Andrews Labor Government’s cuts to payroll tax which will help create jobs.

In a massive boost to regional economies, the Government will reduce the payroll tax rate by 25 per cent in regional Victoria – from 4.85 per cent to 3.65 per cent for all businesses operating mostly in regional Victoria, making it the lowest rate in the country.

This will slash costs for about 4000 businesses across Victoria, support companies in regional Victoria to grow, encourage job creation, and ensure every region shares in the benefits of the state’s economic growth.

There are an estimated 650 businesses in Eastern Victoria Region who will benefit from the regional payroll tax cut.

This regional payroll tax cut is on top of other business tax cuts announced in the Victorian Budget 2017/18.

The government is bringing forward the timeline of last year’s payroll tax cuts. The payroll tax-free threshold will now increase to $625,000 as of 1 July this year, and to $650,000 from 1 July 2018, in a fast-track of changes set to save business up to $48 million and create new jobs.

The Government is also allowing more small businesses to opt for an annual payroll tax payment instead of monthly payments. Extending the annual payment threshold from $10,000 to $40,000 cuts red tape and increases cash flow flexibility for thousands of businesses across Victoria.

Agri-businesses will also benefit, with the Budget removing insurance duty on agricultural products, making it cheaper for farmers to insure against crop, livestock and equipment damage.

Quotes attributable to Member for Eastern Victoria Region, Harriet Shing:

With all that our region contributes to Victoria’s prosperity, Gippsland should also share in our economic success – payroll tax cuts will help existing businesses to grow, and encourage more businesses to set up shop and create jobs across Gippsland.”

“Alongside existing business support and programs such as those provided through the Latrobe Valley Authority, this payroll tax cut for regional businesses will help them to do more of what they do best – building their enterprises and driving local jobs growth.”