As the next financial year starts, the State Government has announced the payroll tax-free threshold had been lifted from $700,000 to $900,000, then to $1 million from 1 July 2025.
The changes would result in about 6000 businesses no longer paying any payroll tax and a further 22,000 businesses paying a reduced amount – saving up to $14,550 per year.
According to the State Government, the changes were aimed at supporting small businesses, with the payroll tax-free threshold set to be phased out for larger businesses, to ensure this support is well targeted.
Other tax reforms passed down included the replacement of stamp duty on commercial and industrial properties, which aimed to create 12,600 new jobs and boost the Victorian economy by up to $50 billion over the next 40 years, and starting the process of removing business insurance duty over a 10-year period.
Across these three reforms, the State Government aimed to help Victorian businesses save about $900 million over the next four years.
