Tuesday, 27 February 2018

More than 400 businesses in Gippsland are paying less tax thanks to the Andrews Labor Government’s payroll tax cuts, introduced in July last year.

Across regional Victoria, more than 2,100 businesses are paying less tax courtesy of the initiative, saving businesses more than $31 million since the rate was cut from 4.85 to 3.65 per cent in July last year.

As a result of the tax cuts, regional Victoria now has one of the most competitive payroll tax rates in Australia. This has proven to be a massive boost for regional businesses looking to expand their operations, and yet another huge boost for jobs in regional Victoria.

Local Government Area Number of Businesses Amount of tax forgone
Wellington 103 1,402,288
Latrobe 98 1,896,867
East Gippsland 79 694,854
Baw Baw 78 562,938
South Gippsland 37 255,281
Bass Coast 21 212,500
TOTAL SAVINGS 416 $5,024,728


Employment growth in regional Victoria over 2017 was double the national rate. Year average employment increased by 20,900 over the year.

The number of persons employed in the Latrobe-Gippsland SA4 is currently (January 2018) 126,300 (Table 1), which is 1,300 (1.0 per cent) more persons employed compared with 12 months ago and 3,100 (2.5 per cent) more persons employed compared with November 2014.

Employment in Latrobe-Gippsland SA4 (three-month average)

Latrobe-Gippsland SA4 Current


A year ago


Change* Nov 2014 Change*
No. of persons employed 126,300 125,000 +1,300 or 1.0% 123,200 +3,100 or 2.5%


* Numbers may not add up due to rounding.

Together with the regional payroll tax cut, from 1 July last year, the payroll tax-free threshold right across the state also increased to $625,000. From 1 July 2018 the threshold will rise again to $650,000, providing further savings for tens of thousands of Victorian businesses.

There are also a number of other changes that are benefiting regional businesses, such as allowing up to 9 700 additional 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.

The Andrews Labor Government is growing jobs and building infrastructure across the state, with over $4 billion dedicated to regional Victoria in the most recent Budget, including delivering on the $1.5 billion Regional Rail Revival Package that will deliver upgrades to every major commuter rail line in Victoria.

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

“Our reduction of the payroll tax rate has enabled more than 400 local businesses to expand their operations and take on new employees.”

“By creating jobs and reducing impediments to growth, we’re ensuring that every part of our state can prosper and that regional Victorians in particular can reap the benefits of our economic success.”