Thousands of new jobs will be created in regional Victoria, with the Andrews Labor Government slashing payroll tax for regional businesses making it the lowest in Australia.
The Victorian Budget 2018/19 builds on last year’s tax cuts and further reduces tax for regional businesses, cutting the regional payroll tax rate to 2.425 per cent – half the metropolitan rate.
“For the third year in a row we’re reducing the tax burden in regional Victoria, sharing our economic success with every corner of our state. This will help small businesses expand, see new businesses start and, most importantly, create more local jobs.”
Treasurer Tim Pallas
The reduction means regional businesses now pay the lowest payroll tax rate anywhere in the country, and is the third year in a row that the Andrews Labor Government has reduced the payroll tax burden for businesses.
From 1 July 2018, businesses based in regional Victoria and who pay at least 85 per cent of their payroll to regional employees will be eligible for the reduced payroll tax rate.
“By cutting stamp duty for young farmers, we’re making it easier for them to get their start on the land, as well as supporting our regional economies.”
Minister for Agriculture and Regional Development Jaala Pulford
It’s a reduction that will help around 4,000 businesses in regional Victoria continue to grow and create jobs, and helps make sure that every corner of our state shares in the benefits of our economic growth. Last year’s Budget reduced the regional payroll tax rate by an initial 25 per cent.
Last year’s Budget also brought forward previously announced increases to the payroll tax-free threshold, saving businesses an extra $48 million.
”Small businesses are crucial to regional Victoria, both socially and economically, so it’s important that we are doing all we can to help them grow and employ more local people.”
Minister for Small Business Philip Dalidakis
The Budget will also double the stamp duty-free threshold for young farmers – from $300,000 to $600,000 – helping more young Victorians looking to buy their first farm.
The increase means farmers aged under 35 and buying their first farm property will receive a full stamp duty exemption on purchases up to $600,000, bringing it into line with the first home buyers exemption threshold. Those purchasing farms between $600,000 and $750,000 will receive a tapered discount.