logo
Receive the latest mybusiness news
SUBSCRIBE TO OUR NEWSLETTER
Copyright © 2020 MOMENTUMMEDIA

Victoria ‘worst performer’ on payroll tax

Reporter
Reporter
12 September 2018 1 minute readShare
Victoria, Australia, map

Victoria now holds the title of worst performer when it comes to payroll tax, the state’s business chamber has claimed, after other states unveiled plans to lift the burden off small businesses.

According to Victorian Chamber of Commerce and Industry chief executive Mark Stone, Victoria is trailing all other states and territories by implementing the dreaded tax on a staff wages threshold of $650,000.

Mr Stone said that all other states have, or will have from next year, thresholds of between $850,000 and $2 million.

Advertisement
Advertisement

It follows the announcements by the NSW and South Australian governments that they would increase their respective thresholds.

However, Victoria has one of the lowest rates of payroll tax, which is split between 4.85 per cent for Melbourne businesses and 2.425 per cent for those in regional areas.

 

Only Queensland has a lower fixed rate, at 4.75 per cent, while the rate of payroll tax in Tasmania varies between 4 per cent and 6.1 per cent depending on the size of the business.

“Despite the efforts of the Andrews government, Victoria has fallen behind. If small businesses are to grow and create more job opportunities for Victorians, we need to increase the payroll tax threshold,” Mr Stone said.

“It doesn’t make sense to slap Victorian small businesses with a tax on jobs.”

He added: “We care about keeping Victorian business competitive and ensuring young Victorians have job opportunities to build a strong future. Victoria’s payroll tax is making it harder for business to hire more people.”

SPONSORED CONTENT

 

State and territory governments raked in $23.65 billion in payroll tax last financial year alone, according to estimates by The Tax Institute. Victoria had the second-biggest take, behind NSW, with $5.9 billion.

Victoria ‘worst performer’ on payroll tax
mybusiness logo
Reporter
Reporter

Adam Zuchetti is the former editor of MyBusiness and a senior freelance media professional, specialising in the fields of business, personal finance and property. In 2020, he also embarked on his own business journey – inspired in part by the entrepreneurs and founders he had met through his journalistic work – with the launch of customised pet gifting and subscription service Paws N’ All.

Leave a Comment

Latest poll

How satisfied are you with the SME measures in the federal budget?