Andrews dumping tax concessions for struggling businesses in their time of need

Daniel Andrews has today increased payroll tax for tens of thousands of Victorian businesses who are suffering during the COVID-19 pandemic. 

The payroll tax concession for payrolls under $3 million ended on 30 June and despite Victoria being the hardest hit by the virus, the Premier refuses to give businesses a break. 

It’s a horror move as 200,000 Victorians have already lost their jobs in the past two months.  How many more workers will become unemployed after this devastating blow?

The Andrews Labor Government will now take up to 4.85 per cent payroll tax from Victorian businesses. A business with a payroll of under $3 million, could pay in excess of $100,000 in payroll tax over the course of 2020-21.  Many simply cannot afford it right now and the Premier’s callous move could force them to shut up shop. 

The Premier’s decision to scrap these vital concessions also provides a disincentive for businesses to hire, meaning Victorians who’ve been laid off will suffer as well.

In May, the Liberal Nationals called on Daniel Andrews to raise the payroll tax threshold so that businesses don’t pay this tax on the first $10 million of payroll in the 2020-21 financial year.  A Michael O’Brien-led Liberal Nationals government will ensure that businesses are supported, so that our economy can survive and thrive. 

Businesses are the last thing on Daniel Andrews’ mind.  We have seen the results of Labor’s mismanagement of this state in recent weeks. A spike in COVID-19 cases, now connected to a failure of hotel quarantine, has meant many Victorian businesses who were preparing to open, cannot do so. For businesses in the locked down areas, they are right back where they were in March and April, after starting to get back to some sort of normality.

It’s clear that struggling businesses still desperately need relief from payroll tax. We call on Daniel Andrews to extend concessions immediately, so businesses can continue to operate and keep employing Victorians.

Comments attributable to Shadow Treasurer, Louise Staley:

“The events of the last few weeks have reminded everyone that this outbreak is far from over. Businesses all over Victoria continue to do it tough and those in the locked down parts of Melbourne face incredible difficulties.

“The Liberal Nationals call on the Premier to extend payroll tax concessions. Our Back to Work and Back in Business plan includes payroll tax relief on the first $10 million of payroll for all of the 2020-21 financial year.

“We need to be making it easier for businesses to survive and to start creating jobs. Daniel Andrews needs to extend the payroll tax concessions and do it now.”

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