MINISTERS STATEMENTS: BUDGET 2023–24
Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Trade and Investment) (14:11): I am excited about the news that 26,000 small businesses will benefit from payroll tax changes are that were announced in last month’s budget. That is around 60 per cent of all current payroll taxpayers benefiting by up to $14,550 a year. From 1 July 2024 the government will lift the payroll tax threshold from $700,000 to $900,000, and then 12 months later on 1 July 2025 we will lift that payroll-tax-free threshold to $1 million. About 6000 businesses or about 15 per cent of current payroll taxpayers will stop paying altogether. Any business on a payroll of less than $3.6 million will either pay no tax or will pay less tax as a result of these changes.
We are progressing these important reforms despite the fact that we are not getting our fair share in terms of GST distribution. Now, Victoria makes up 26 per cent of the national population. That is the good 26 per cent, not the 26 per cent the Leader of the Opposition is familiar with. Yet with 26 per cent of the nation’s population we only get 22 per cent of GST distribution. This year Victorians will send $2.8 billion of their taxes to other states to prop up their ailing economies – $670 million to South Australia and $620 million to Tasmania – so we are fighting for a fair deal from the GST. We need to because the former Liberal–National government in Canberra was doing dirty deals to buy – (Time expired)
The SPEAKER: I ask members, if they are interjecting and across the chamber, to refer to members by their correct titles.