Business to bear the brunt of Victorian Budget

24 May 2023

Victorian businesses have been dealt a cruel hand in yesterday’s State Budget, according to the Victorian Automotive Chamber of Commerce (VACC).

“While there are some positive elements in the Budget, such as the raising of the payroll tax-free threshold to $900,000 from 1 July next year – which is good news for small business, and the gradual removal of stamp duty on commercial insurance, overall Victorian businesses have been unfairly penalised,” said VACC CEO Geoff Gwilym.

“The COVID-19 Debt Levy will saddle many Victorian businesses with high costs for the next 10 years.

“There are also significant increases to land tax and WorkSafe premiums. These may result in decreased investment or a shift by many businesses interstate,” said Mr Gwilym.

Ultimately, and given the payroll tax changes, there is a real risk fewer apprentices will be employed by medium and large businesses in Victoria. This extends to group training organisations who have a large payroll bill, while placing apprentices in employment.

“At a time of unprecedented skill shortages, imposing extra taxes on business is not something we want to see,” said Mr Gwilym.

ENDS