June 27th, 2025Cutting payroll tax
Victoria is open for business – and the state government is creating jobs by cutting payroll tax for small businesses and slashing red tape for cafes, bars and restaurants.
Premier Jacinta Allan, Treasurer Jaclyn Symes and Minister for Planning Sonya Kilkenny visited the Terminus Hotel recently to announce that, from 1 July 2025, the payroll tax-free threshold will lift from $900,000 to $1 million – meaning even more small businesses will pay no payroll tax.
It follows the lifting of the threshold from $700,000 at the start of the financial year. The change will mean about 6,000 businesses no longer paying any payroll tax and a further 22,500 businesses paying a reduced amount – saving up to $14,550 per year.
Also from 1 July, it will be faster and easier to open a restaurant to serve alcohol – and to expand dining outdoors.
Businesses applying for a liquor licence will no longer be required to obtain approval from both the local council and Liquor Control Victoria (LCV) – only the latter.
By removing the double up, this reform will slash the time it takes for pubs, cafes and restaurants to get a liquor licence, enabling businesses to open up to six months earlier and saving them up to $7,000.
Currently around 600 businesses apply for a new application annually. A further 14,000 existing liquor license holders could also benefit from these changes if they’re looking to vary their license.
Protections for amenity, noise and operating hours will remain in place, while zoning and planning permit requirements will continue to determine where restaurants and pubs can open their doors. Only now, businesses won’t be asked to waste time proving the same things twice.
Additionally, the temporary changes made during the pandemic to remove the need for a planning permit for outdoor dining will become permanent.
The move will allow venues to serve customers in underutilised spaces including streets, footpaths and carparks without a planning permit – supporting more Victorians to enjoy dining outdoors at pubs, cafes, bars and restaurants without businesses facing unnecessary red tape.
