Tax exemption offers new opportunities
- Published on Saturday 30 January, 2016
- 1 min. read
As part of the Victorian State Budget 2016/17, employers will be exempt from paying payroll tax for the wages of a displaced apprentice or trainee.
Each year, between 4,000 and 5,000 Victorian apprentices and trainees are displaced during their training, making it difficult for them to find new employment and complete their qualification. Approximately 1,400 of these apprentices or trainees are heading to jobs in regional Victoria in order to become qualified.
Effective 1 July 2016, the exemption is designed to ensure apprentices and trainees are provided with a chance to complete their qualifications, and to make it easier for employers, particularly in regional Victoria, to offer these opportunities.
The State Government has also announced it will reduce the payroll tax burden on business. The current $550,000 payroll tax threshold will be gradually increased to $650,000 by 2019-20 allowing businesses to focus on investment and job creation.
For more information regarding the tax exemption, see the Victorian State Government media click here.