July 11th, 2025Payroll tax-free threshold lifted

The payroll tax-free threshold has lifted 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.

Victoria’s economy is strong and our world-leading capabilities, established industries, skilled workforce and outstanding liveability make the state one of the best places to live, work and invest.

Business investment in Victoria remains robust, growing by 1.6 per cent in the four quarters to March 2025, compared to 1.2 per cent nationally.

More than 113,000 businesses have been added since June 2020, the largest percentage growth of any state.