Covering the Goulburn and Murray valleys

Little payroll tax reduction benefit for city

Shepparton accountant gives view of Victorian Government's 2014-15 budget move.

DARREN LINTON May 7, 2014 3:04am

A leading accountant believes a payroll tax cut announced in the Victorian budget is welcome, but won’t create jobs in the Shepparton region.

Just before yesterday’s budget, Victorian Premier Denis Napthine and Treasurer Michael O’Brien said that from July 1, the state’s payroll tax rate would be cut to 4.85 per cent, saving 39000 employers $234million across four years.

Dr Napthine said the initiative meant Victorian businesses with annual payroll between $4.7million and $26.7million would pay the lowest payroll taxes in Australia. The saving for businesses at the lower threshold of $4.7million would be $2350 a year, while a business with a payroll of $10million would save $5000.

‘‘Whilst welcome it is pretty paltry, but any cut is welcome,’’ MB+M Business Solutions’ Peter Bicknell said.

‘‘It is not an extraordinary amount, but I’d much rather see it come down. It isn’t going to create jobs in the Shepparton economy.’’

Dr Napthine said the tax reduction would provide businesses with economic conditions to employ more staff and made the state more attractive for businesses looking to invest or relocate.

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