About 6,000 businesses no longer need to pay payroll tax
About 6,000 businesses in Victoria will no longer have to pay payroll tax starting this month as the State Government lifts the payroll tax-free threshold.
The Victorian Government has raised the payroll tax-free threshold to $1 million from July 1, following an increase from $700,000 to $900,000 last year.
This means that about 6,000 businesses will no longer pay any payroll tax, while around 22,500 businesses will be paying a reduced amount, according to the state government.
The change impacts about 6,000 businesses that will no longer have to pay payroll tax, according to the state government. Around 22,500 businesses will also be paying a reduced amount and will save up to $14,550 annually.
"Every dollar not paid in payroll tax under this new threshold is a dollar that can be invested back into the business, into higher wages or employee training — it's a win for business and a win for workers," said Acting Treasurer Danny Pearson in a statement.
The state government said in its 2023 budget that they raised the threshold as the previous $700,000 was "too low."
"We are making payroll taxes fairer for business," the government previously said.
The increase in the payroll tax-free threshold is just one of the major changes coming to Victoria starting this month.
The government also made it faster and easier for restaurants to serve alcohol, as well as eliminated the need for food and drink venues to get an additional planning permit to add outdoor dining.
Changes starting July 1
The changes come as the National Minimum Wage hike of 3.5% takes effect this month across Australia, raising the minimum wage to $24.95 per hour or $948 a week.
Paid parental leave has also been increased to 24 weeks, with coverage extended to parents experiencing stillbirths and neonatal deaths.
Families accessing the government-funded parental leave also receive paid superannuation at the new standard rate of 12%.
Meanwhile, New South Wales is also introducing a new portable long service leave scheme for community service workers starting this month. Under the new scheme, workers will be able to access six weeks of paid leave without having to work for the same employer.
