Liberals pledge to cut regional payroll tax

THE Liberal Nationals have pledged to cut the existing payroll tax rate of 2.425 per cent for qualifying businesses in regional Victoria to just 1.0 per cent if they form government.

Announced by Opposition Leader Matthew Guy at his campaign launch at the weekend, the cut is expected to save around 4,000 businesses an average of $11,633 a year.

About 4,000 regional businesses qualify for the concessional payroll tax rate.

The qualifications include that at least 85 per cent of the payroll must be comprised of Victorian wages associated with regional employees and that the employer is based in regional Victoria.

Mr Guy said the incentive for economic development in regional Victoria was part of the Liberal Nationals’ plan for decentralisation.

“Only the Liberal Nationals have a plan to get back in control of population growth by decentralising our jobs and our population.

“We need to regionalise our growth, and not just focus on Melbourne alone. We cannot continue to grow the way we have the past 30 years for the next 30 years.

“My vision for Victoria is to be a state of cities and not a city state.

“We need population growth in the right areas, at the right time.”

Victorian Chamber of Commerce and Industry chief executive Mark Stone welcomed the commitment.

“This pro-business commitment will reduce the cost of doing business in regional Victoria and will help stimulate business opportunities and jobs growth.

“The Victorian Chamber has been a strong advocate for payroll tax reform, securing an increase to the threshold and two successive cuts to the regional payroll tax rate in recent years.”

VCCI says regional Victoria contributes nearly 20 per cent of Victoria’s annual economic output and is home to more than 130,000 businesses.