The Victorian State Budget has delivered stinging costs on Victorian businesses which will impact thousands in the State, the national association of employers, Ai Group, said today.
Over the past week, Victorian businesses have been met with major increases in payroll taxes, WorkSafe premiums and land tax.
Tim Piper, the Victorian Head of Ai Group, said there had been a 41 per cent increase in payroll tax for big businesses over the past two years, a 42 per cent increase in WorkSafe premiums announced last week and significant land tax increases across a broad range of stakeholders.
Mr Piper said the Budget was a disincentive to invest in Victoria, a result that would affect all businesses and consumers.
“The Government has made a considered decision to saddle businesses with significant extra costs that can only make the cost of doing business in the State much higher,” he said.
“There is a risk that business decisions will be based on government-imposed taxes rather than on investment opportunity.
“It may not be helpful when companies compare Victoria with other states or countries for their investments.”
On a positive note, Mr Piper said the gradual removal of stamp duty on commercial insurance was a step in the right direction.
Ai Group also supports the Government’s decision to transition away from stamp duty on commercial properties and encouraged it to do the same for residential dwellings, to encourage investment and labour mobility.
