A PAYROLL tax-free threshold increase from $900,000 to $1 million will be effective from 1 July, exempting thousands of businesses in Victoria from paying the tax. This follows a previous increase from $700,000 at the beginning of the financial year. About 6000 businesses will no longer pay payroll tax, while another 22,500 will see a reduction, saving up to $14,550 annually. Streamlined liquor licensing processes for restaurants will also commence on 1 July. Businesses will only need approval from Liquor Control Victoria, removing the local council requirement. This change is expected to expedite the licensing process by up to six months, saving businesses up to $7000. Around 600 new applications are submitted each year, and an additional 14,000 existing licensees may benefit from variations. Existing protections for amenity, noise, and operating hours will remain. Planning permits and zoning regulations will continue to determine business locations, but the duplication of proving compliance will cease. Temporary pandemic measures allowing outdoor dining without planning permits will become permanent. This allows venues to use spaces like streets, footpaths, and carparks, further reducing red tape. These reforms complement the government's stamp duty overhaul, replaced by a Commercial and Industrial Property Tax, projected to create 12,600 jobs and boost the Victorian economy by $50 billion over 40 years. Victoria is also phasing out business insurance duty, saving businesses an estimated $780 million over four years, with the duty being reduced from one July 2024 and fully abolished within a decade. These initiatives are expected to save Victorian businesses about $1.35 billion over the next four years. The 2025/26 Victorian Budget allocated $627 million to support businesses and economic growth, including the full implementation of the Economic Growth Statement. These investments aim to build on Victoria's strong economic growth, with real gross state product estimated to be almost 14 per cent larger in 2024-25 than in 2018-19, a per capita increase of 4.7 per cent. Business investment remains strong, growing by 1.6 per cent in the year to March 2025, with over 113,000 businesses added since June 2020, the highest percentage growth nationally.
