In another plank in our plan to decentralise our jobs and our population, a Liberal Nationals Government will cut the current payroll tax rate of 2.425% for qualifying businesses in regional Victoria to just 1.0%.
The new rate under a Liberal Nationals Government will be less than one-quarter of the standard 4.85% rate.
Melbourne is jam packed with a population over 5 million people and growing at an average of around 2,700 a week.
Daniel Andrews has lost control of population growth and it’s putting enormous stress on housing affordability, roads, public transport, schools and hospitals and that negatively impacts everyone’s quality of life.
Daniel Andrews says we can fit another three million people into Melbourne over the next few decades. The Liberal Nationals don’t agree. We believe we need to get back in control of population growth through a strategic plan to decentralise our jobs and our population.
Our decentralisation plan ticks every box – unclogging major arterial roads, metropolitan rail extensions to growth areas, new highways, building the fastest passenger rail in Australia and helping create new jobs in regional Victoria.
The Liberal Nationals comprehensive plan for decentralisation includes incentives for economic development in regional Victoria.
That’s why a Liberal Nationals Government will cut payroll tax in regional Victoria to just 1.0% for all businesses under the existing eligibility criteria for the concessional rate.
The Liberal Nationals tax cut is expected to save around 4,000 businesses an average of $11,633 a year.
Around 4,000 regional businesses qualify for the concessional payroll tax rate. The qualifications include that at least 85% of the payroll must be comprised of Victorian wages associated with regional employees and that the employer is based in regional Victoria.
Comments attributable to Member for Narracan, Gary Blackwood:
“We know regional businesses here in Gippsland and the Latrobe Valley have being doing it tough under Daniel Andrews and we want to deliver this cut to payroll tax to ease just some of the pressure they are feeling.
Regional businesses I have spoken to regularly tell me that payroll tax is stifling their ability to invest more in their day-to-day operation.
Our policy to cut payroll tax for regional businesses will deliver greater financial flexibility so that they can reinvest in infrastructure, assets and their employees to grow their enterprise and improve their viability long term.
The Liberal Nationals are committed to regional jobs and businesses and I thank Matthew Guy and Michael O’Brien for their leadership for regional Victoria on this issue.”
Comments attributable to Leader of the Opposition, Matthew Guy:
“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.
Victoria can’t afford four more years of Labor’s unplanned, unmanaged population growth.”
Comments attributable to Shadow Treasurer, Michael O’Brien:
“Before the last election Daniel Andrews promised he wouldn’t increase or introduce new taxes. Since then he has broken that promise 12 times. Victoria is now the highest taxed state in Australia.
Payroll tax is a tax on jobs. The Liberal Nationals will slash payroll tax in regional Victoria to just 1.0%, to provide more incentives to create jobs in our regions and to decentralise growth.
The Liberals and Nationals will still review our tax system to identify further barriers to decentralisation, but this policy shows that we are serious about growing the whole of the state, not just Melbourne.”
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