Tax cut will boost small business
20 Jun 2017 North Central Review (Kilmore), Melbourne (General News) IN a massive boost for businesses and local jobs across the Mitchell Shire, the state government has announced the Victorian Budget 2017/18 is reducing payroll tax by 25 per cent for regional businesses. Attempting to boost regional economies, the state government will reduce the payroll tax rate by 25 per cent in regional Victoria from 4.85 per cent to 3.65 per cent for all businesses operating mostly in regional Victoria, making it the lowest rate in the country. This will slash costs for about 4000 businesses, support companies in regional Victoria to grow, encourage job creation, and ensure every region shares in the benefits of the states economic growth. The payroll tax-free threshold will now increase to $625,000 as of July 1 this year, and to $650,000 from July 1, 2018, in a fast-track of changes set to save business up to $48 million and create new jobs. As a result, about 38,000 Victorian businesses will benefit by up to $1200 in each year that the threshold increases are fasttracked. Of these, about 1600 small businesses will stop paying payroll tax a year earlier. Member for Yan Yean, Danielle Green said that the initiative would see more local jobs close to home means less time commuting and more time with family. Mitchell Shire businesses are being supported by the 25 per cent rate cut to payroll tax. It means it will be easier to start a business, run a business and employ more staff. The payroll tax cut will provide an economic boost to Mitchell Shire and other regional councils across Victoria, Ms Green said. The state government has cut payroll tax two years in a row in an effort to help business create thousands of new Victorian jobs. The tax cut for small businesses helps business owners build their businesses and create jobs for locals. Mitchell Shire mayor, Cr Rhonda Sanderson said that Mitchell Shire is a great place to live, study or work and the growth that our Shire is experiencing emphasises that. In managing and planning for that growth, council is focused on attracting new businesses to the Shire, as well as supporting our existing businesses, Cr Sanderson said. Small businesses are so important to our local economy and council supports any measures that promote shopping locally, creates jobs or can in general help our businesses thrive. Council welcomes regulations from the government that will create incentive for business growth and relocation into fast-growing municipalities, such as Mitchell, she added The Government is also allowing up to 9700 additional small businesses to opt for an annual payroll tax payment instead of monthly payments. Extending the annual payment threshold from $10,000 to $40,000 cuts red tape and increases cash flow flexibility for thousands of businesses across Victoria to choose annual payments. Agri-businesses will also benefit, with the Budget removing insurance duty on agricultural products, making it cheaper for farmers to insure against crop, livestock and equipment damage. The Government will also implement recommendations from the Small Business Regulatory Review, which will continue to remove cumbersome red tape, making it quicker and easier to start and grow a retail business. Caption Text: Creating jobs: (from left) Member for Northern Victoria Jaclyn Symes, Member for Yan Yean Danielle Green, Mitchell Shire Council Mayor Cr Rhonda Sanderson and Chamber of Commerce representative Janene Poynton are excited about the reduction in payroll tax by 25 per cent for regional businesses and what it means for business growth within the Mitchell Shire. Licensed by Copyright Agency. You may only copy or communicate this work with a licence.