By Mitchell Clarke
Gembrook MP Brad Battin wants the State Government to immediately implement payroll tax relief to all businesses across Cardinia and Casey.
In a bid to return to some state of normalcy, the opposition is calling for payroll tax to be waived on the first $10 million of annual payroll to 30 June next year.
“Payroll tax is a tax on jobs and is a disincentive for businesses to hire,” Mr Battin said.
“Reducing this tax on all businesses during the recovery phase will allow businesses to survive and get more Victorians back to work.
“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.”
The State Government has provided full payroll tax refunds for the 2019-20 financial years to small and medium-sized businesses with a payroll of less than $3 million.
With that threshold set to end on 30 June, Mr Battin argued that similar support needed to continue throughout the pandemic.
“After that, they (the State Government) will only allow businesses to defer paying payroll tax during the first quarter of 2020-21 (Jul-Sep),” he said.
“Any business in Casey and Cardinia that chooses to take up this deferral option will still be liable to pay any amount deferred payroll back to government, in full, at a later date.”
The State Government has provided more than $3 billion to support Victorian businesses and workers affected by Covid-19.
A government source said the “vast majority” of businesses in Victoria didn’t pay payroll tax and said that although the proposal would provide millions to major companies, it would mean nothing for the 100,000 small businesses who don’t pay the tax.
A State Government spokesperson said the tax free threshold had been increased every year since 2016.
“The Government has already taken significant steps to provide payroll tax refunds and relief to small businesses to help save jobs and get businesses to the other side of the crisis,” the spokesperson said.
“We have regularly announced support measures for businesses and workers, and we’ll continue to make these announcements in due course.”
