Opposition Leader Michael O’Brien calls for payroll tax relief for Victorian businesses
Payroll tax brings in billions of dollars for the state government every year, but Opposition Leader Michael O’Brien wants the payments to be waived for some Victorian businesses.
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Hundreds of thousands of small and medium businesses would be exempt from payroll tax until the next financial year under a Coalition stimulus plan.
Opposition Leader Michael O’Brien will on Wednesday call on the Andrews Government to waive the lucrative state tax for the first $10 million in wages paid by every business.
The scheme would run to June 30, 2021 and the Coalition estimates would deliver up to $485,000 to businesses, with many paying no tax at all.
Bigger companies would be taxed as normal for every dollar in wages paid over $10 million.
The government in March announced cash refunds on tax bills for businesses with payrolls up to $3 million as part of its economic survival package.
The program expires on June 30.
Payroll tax brings in billions of dollars for the state government every year.
Mr O’Brien said thousands of Victorian businesses were on life support.
“If we want businesses to start hiring again they need a heart starter. My payroll tax relief plan will do just that,” he said.
“Payroll tax is a tax on jobs and is a disincentive for business to hire.
“Reducing this tax on all businesses during the recovery phase will allow businesses to survive and get more Victorians back to work.”
Mr O’Brien said the state’s economy had flattened along with the curve of new coronavirus cases.
“I’m putting forward positive ideas for the Andrews Labor Government to take up to get Victorians back to work,” he said.
State and federal governments are considering tax reform as they work out how to resuscitate the economy.
The Victorian government has explored the possibility of replacing stamp duty with an annual tax on land but this move would be a major shift.
Nationals leader Peter Walsh said rebuilding local economies had to start with employers.
“Small and medium businesses are the backbone of our economy and only when government can incentivise them to create new jobs and free up money within their businesses can Victoria get back to work and back in business,” Mr Walsh said.
“While the Liberal Nationals have a strong plan to get Victoria back to work and back in business, Labor remains hamstrung by its union backers dictating when it should reopen what parts of our economy.”
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