Since 1 July 2017, a lower Victoria payroll tax rate of 3.65% has applied to wages paid by regional employers. This rate was further reduced to 2.425% from 1 July 2018.
The 2019 State Budget announced further payroll tax cuts for regional businesses, from its current rate of 2.425% to 1.2125% by 2022-23, which should be the lowest payroll tax rate in the nation.
This is in addition to the general increase in the payroll tax-free threshold from $650,000 to $700,000 by 2022-23 which is anticipated to benefit up to 1,400 businesses.
Recapping on eligibility for the regional rate:
– an employer is based in regional Victoria if it either has an ABN and a registered business address in regional Victoria or if it does not have an ABN has its principal place of business in regional Victoria.
– A regional employer must also pay at least 85% of its monthly Victorian taxable wages to regional employees under both the monthly payroll tax returns and the annual payroll tax return.
For more detail on eligibility, contact us or see our previous article here.
Land transfer duty reductions
In a bid to further encourage growth in regional Victoria, the budget announcement also introduced discounts on land transfer duty for the purchaser of commercial and industrial properties in regional Victoria.
The concession is slated to begin at 10% from 1 July 2019 and increase by 10% annually to eventually provide a 50% discount by 1 July 2023.
For further information or advice, please contact:
Principal Lawyer - Harwood Andrews Lawyers
Paul brings experiences as in-house counsel, private legal advisor and business owner to his role as a Principal Lawyer with Hardwood Andrews.
Aligning with his philosophy that good professional advice can be transformative to business Paul is valued for distilling issues down to what is really important and being prepared to make a risk call based on judgement and experience.