Vic opposition vows to scrap stamp duty
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The Victorian opposition party said that it would scrap the Labor government’s stamp duty tax increase on the family home if elected to power.
The Liberal Nationals Party has committed to abolishing the stamp duty tax increase on the family home if it is elected to the government in Victoria.
The stance has followed the release of the Labor government’s Victoria budget 2021-22, in which it said that it would introduce a new land transfer duty threshold for high-value transactions for contracts entered into from 1 July 2021.
The budget papers said that for property transactions with a dutiable value above $2 million, the land transfer duty payable will increase to $110,000 plus 6.5 per cent of the dutiable value in excess of $2 million.
‘It’s logical’: Small business advocates support ditching payroll tax for higher GST
COSBOA chief Peter Strong. Source: supplied.
Small business advocates are throwing their support behind scrapping payroll tax across Australia and replacing it with an increase in GST.
The renewed calls for changes come after the Victorian government announced fresh reforms to payroll tax, including a 0.5% levy for medium-sized businesses that will help pay for a new $3.8 billion overhaul of the state’s mental health services.
But small business advocates agree payroll tax is a burden on businesses which can discourage employers from hiring new staff and create compliance costs for businesses operating across multiple states.
Victorian government’s payroll tax hit a bitter pill for growing businesses
Victorian Treasurer Tim Pallas and Victorian Premier Daniel Andrews. Source: AAP/Erik Anderson.
For several years now, state governments across the country have been both gradually reducing the rate of payroll tax levied on businesses, and lifting the thresholds at which payroll tax kicks in.
In yesterday’s Victorian budget, this practice continued, with the government announcing the state’s payroll-free threshold will lift to $700,000 and the rate of payroll tax cut to 1.2% for regional businesses.
Governments have seemingly started to accept that payroll tax is a disincentive for hiring. It is seen, quite rightly, as a tax on jobs. This is because the tax is, by its very nature, regressive: the more employees your business has and the bigger your payroll gets, the more tax you pay.
What remarkable sophistry governments engage in when it comes to discussing wages. And not just Coalition governments.
Last week s federal budget predicted that even a fall in unemployment to levels not seen since the days before social media wouldn t shift the dial on wages growth out of the doldrums and casually blamed state government wage caps along the way. Nothing about the wages cap of the nation s biggest employer, the Commonwealth public service.
At least Josh Frydenberg and his Treasury minions acknowledged a role for public sector wages policy in affecting wages growth. The Victorian government and its treasurer Tim Pallas would have us believe that wages growth floats free of any connection with what that state s biggest employer does.
Victoria now the highest taxing state for business
May 21, 2021 – 4.39pm
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Tax experts say Victoria is now the country’s highest taxing state for business and BeyondBlue founder Jeff Kennett warns a $2.9 billion mental health levy on business will drive out jobs and investment.
Ali Suleyman from Pitcher Partners confirmed the levy on payroll tax put Victoria “out of step” with other states and, when combined with a significant increase for both stamp duty, land tax and a new property windfall gain tax, Victoria appeared to have taken the mantle as the highest taxing state for business.
Right cause, wrong method: former Victorian premier and mental health advocate Jeff Kennett has blasted the mental health levy imposed on business in this week’s state budget.