Small and medium sized businesses in East Gippsland 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 East Gippsland on the first $10 million of annual payroll will help get locals back on their feet after the coronavirus pandemic.
Gippsland East Nationals MP, Tim Bull, said this would deliver a payroll tax saving of up to $485,000 for businesses in 2020-21 – just the incentive a business needs to help get Victorians back to work.
“Payroll tax is a tax on jobs and is a disincentive for business to hire,” said Mr Bull.
“Shutdowns to stop the spread of coronavirus have saved lives, but it’s smashed our local businesses, jobs and the local economy.
“A lot of Victorian businesses are on life support at the moment. They need a heart-starter to get them back in the game and 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 30 June 2020.
Under The Nationals’ plan, the threshold would be raised to $10 million in annual payroll and extended to 30 June 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,” said Mr Bull.
“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.”