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small business | May 20, 2020

Payroll tax relief to drive business confidence in Lowan

Small and medium-sized businesses in Lowan will save hundreds of thousands of dollars under The Nationals’ plan for further payroll tax relief.

The call to immediately implement temporary payroll tax relief measures for all businesses across the Lowan electorate on the first $10 million of annual payroll will help get locals back on their feet after the coronavirus pandemic.

Member for Lowan Emma Kealy said this would deliver a payroll tax saving of up to $485,000 for businesses in 2020-21 – just the incentive businesses need to help get Victorians back to work.

“Payroll tax is a tax on jobs and is a disincentive for businesses to hire,” she said.

“Shutdowns to stop the spread of coronavirus have saved lives, but they have had enormous repercussions for our local businesses, jobs and the local economy.

“A lot of Victorian businesses are facing immense challenges at the moment, and need urgent measures to help them get back in the game – our payroll tax cut would do just that.”

The Andrews Labor Government’s temporary assistance in raising the payroll tax threshold to $3 million ends on June 30 this year.

Under The Nationals’ plan, the threshold would lift to the first $10 million in annual payroll and be extended to June 30, 2021. For larger businesses, payroll tax would be payable on each dollar of payroll paid in excess of $10 million.

“Rebuilding our local economies is paramount to get Victoria back to work and back in business. Businesses are the real drivers of our economy, not governments,” Ms Kealy said.

“Only when small and medium businesses are back in business, creating more jobs for Victorians, will our state’s economy be headed in the right direction.”