Victoria

Businesses in Bendigo set to save millions in payroll tax

Hundreds of businesses in the Greater Bendigo region have already claimed more than $5.4 million in payroll tax savings, making it easier for businesses to create jobs.

While many businesses are yet to submit their annual payroll tax return, more than 250 businesses in the Greater Bendigo region have already claimed savings on their payroll tax liabilities.

The Victorian Government has slashed the payroll tax rate for regional businesses by 50 per cent in two years. First from 4.85 per cent to 3.65 per cent – which came into effect on 1 July 2017.

A further cut will be introduced from 1 July 2018, bringing it down to 2.425 per cent – half the metropolitan rate.

In its first year of operation, more than 2,000 businesses across regional Victoria have already taken advantage of the payroll tax cuts, which are expected to save regional businesses around $41 million in the financial year.

A further 2,000 regional businesses that pay payroll tax annually may be eligible to benefit from this reduction.

As a result of these tax cuts, regional Victoria will have the lowest payroll tax rate in Australia.

Businesses across Victoria have also benefitted from successive increases to the payroll tax-free threshold.

From 1 July 2018, the threshold will rise again to $650,000, providing further savings for tens of thousands of Victorian businesses.

Source: Vic Government