Victorian Chamber secures tax cuts for business in 2019-20 State Budget
The 2019-20 budget focuses on responsible financial management, continued strong infrastructure investment and steps to lower business costs. It will provide a much needed boost to business confidence and encourage private sector investment and jobs growth.
Increasing the payroll tax threshold to $700,000 and reducing the regional payroll tax rate to 1.2125 per cent by 2022-23 will help keep Victorian business competitive. However, even after the payroll tax relief takes effect, Victoria’s payroll tax threshold will remain the lowest in the nation, meaning more businesses must pay this tax rather than hire more staff.
A 50 per cent stamp duty concession for commercial and industrial property transactions in regional Victoria will save regional businesses $70 million over the next four years and encourage business to invest in regional Victoria.
The Government will spend a record $13.4 billion per year over the next four years on a significant infrastructure program, including the North East Link and the Melbourne Metro project. The budget provides an extra $6.6 billion to remove an additional 25 level crossings as well as making significant investments in the State’s public transport network.
Despite a significant decline in property tax revenue, the budget delivers surpluses averaging $3.4 billion per annum across the forward estimates. However, an increase in debt to 10 per cent of Gross State Product by 2023 must be carefully managed to ensure that Victoria maintains its AAA credit rating.
The budget position is supported by a range of new and increased taxes including on luxury vehicles, gold mining, land banking and foreign landholders.
This table compares the Victorian Chamber’s pre-budget recommendations with the key initiatives announced in the 2019-20 State Budget: State Budget Victorian Chamber Wins 2019-20.
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