Tens of thousands of Victorian businesses are expected to pay less in tax, with payroll tax changes to be introduced next month.
The change will see the payroll tax-free threshold rise from $900,000 to $1 million on July 1.
Premier Jacinta Allan said it was expected that 28,000 businesses would be paying less, with an additional 6,000 businesses now exempt from the tax altogether.
The changes to payroll tax have been earmarked since 2023, with the government raising the threshold first from $750,000 to $900,000 in July last year.
The move comes amid forecasts of record high levels of debt, with the premier conceding there would be some recalculations required.
“Yes, this does require an adjustment to our budget and our revenue, but…