Victorian Coalition promises tax review to push regional growth, ease burden on Melbourne
REGIONAL and rural Victorians could receive tax breaks under a State Opposition plan to draw people out of Melbourne.
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REGIONAL and rural Victorians could receive tax breaks under a State Opposition plan to draw people out of Melbourne.
Coalition leader Matthew Guy said today, if elected in November, a secretariat within the Department of Treasury and Finance would review Victoria’s tax system, and consider incentives for regional and rural areas.
While he would not “pre-empt” the review, possible changes to payroll, land and property tax were floated.
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The review is part of the Coalition’s campaign on population growth, promising to encourage more people to move to country Victoria and ease the strain on Melbourne.
Shadow treasurer Michael O’Brien said Victoria’s tax system — the highest in the country — was “not good” for business or consumers.
“We need to make sure we get the tax system right, we need to make sure we decentralise growth to give our regions a fair share and take the pressure of Melbourne,” he said.
“We want to make sure that people looking to invest in Australia and Victoria see our regions as being great opportunities.”
In July, the state government cut regional payroll tax rate to 2.425 per cent, the lowest in the nation.
The government also doubled the stamp duty free threshold for young farmers from $300,000 to $600,000.
Asked whether he the Coalition would continue the government’s reduced payroll tax for regional business, Mr O’Brien said it “wasn’t a great concession”.
“It was about a $40 million reduction, but they’ve increased payroll tax revenue but about $1 billion since they were elected,” Mr O’Brien said.
“It’s like the person who puts $1 into the plate at church and takes out a $20 note.”
But Treasurer Tim Pallas said: “When the Liberals talk about tax reviews, it means handouts to big corporations and cuts to the services hardworking Victorians rely on.”
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