The Victorian Government has released its state budget and the major potential benefit for businesses is a new payroll tax rebate that is available for the 2021 and 2022 financial years.
Businesses with a turnover less than $10 million will have access to this rebate which reduces the payroll tax by 10 cents for every dollar the business’ taxable wages increase from the previous year. The State Government hopes this measure will help stimulate businesses to increase their payrolls and expects the measure to cost them $836 million and generate 9,400 new jobs.
The rebate can only be used to reduce the actual payroll tax liability to nil and will not generate a refund. The rebate will be automatically calculated by the State Revenue Office and will not need to be applied for.
If you would like any further information, please do not hesitate to contact us.