Take advantage of the Victorian Government’s regional payroll tax cuts.
The tax cuts have applied to wages paid by regional employers since 1 July 2018.
This rate is 2.425%
First requirement: Based in regional Victoria
An employer is based in regional Victoria if it either has an ABN and a registered business address in regional Victoria or has its principal place of business in regional Victoria.
In general, the location requirement is determined with reference to the business’ location in the month the wages were paid. Where a business moves addresses during a month, location is determined by looking at where the business was located on the last day of the month.
Regional Victoria is defined as specified local government areas. You will need to be in one of the qualifying regional councils listed below to meet this requirement.
Second requirement: 85% of wages paid to regional employees
This requirement means the employer must pay at least 85% of its monthly Victorian taxable wages to regional employees under both its monthly and annual payroll tax return.
A regional employee is an employee who performs services for their regional employer ‘mainly’ in regional Victoria during the relevant month. Statutory guidance on what ‘mainly’ might mean is lacking, however the State Revenue Office indicates this would be satisfied where more than 50% of an employee’s services are performed in regional Victoria during a month.