THE Liberal’s pledge to cut the current payroll tax rate of 2.425 percent for qualifying businesses in regional Victoria to just 1.0 percent has been welcomed by businesses in the Shepparton district.
The new rate under a Liberal Government will be less than one-quarter of the standard 4.85 percent rate and is the lowest payroll tax rate in Australia.
Gouge Linen Services director, Rob Priestly has welcomed the commitment to cutting taxes for regional business, acknowledging that in an environment of skyrocketing costs such as energy prices, this will assist business to remain competitive.
“A 1 percent payroll tax for regional Victoria is a fantastic initiative. It makes regional business more competitive and will drive regional development and job growth.
“At a time of rising costs this would be a great assistance to our business.”
Liberal Candidate for Shepparton, Cheryl Hammer said the Liberal’s comprehensive plan for decentralisation includes incentives for economic development in regional Victoria.
“That’s why a Liberal Government will cut payroll tax in regional Victoria to just 1.0 percent for all businesses under the existing eligibility criteria for the concessional rate.
“Our tax cut is expected to save around 4,000 businesses an average of $11,633 a year, many of these businesses are in our region and have applauded the tax relief policy,” Cheryl said.
Around 4,000 regional businesses qualify for the concessional payroll tax rate. The qualifications include that at least 85 percent of the payroll must be comprised of Victorian wages associated with regional employees and that the employer is based in regional Victoria.
