The Victorian Government has announced significant payroll tax reforms to support Victorian businesses and stimulate job creation. Effective 1 July 2025, the payroll tax-free threshold has increased from $900,000 to $1 million, following a previous rise from $700,000 earlier this financial year.

This change means:

• Around 6,000 businesses will no longer pay any payroll tax.
• An additional 22,500 businesses will benefit from reduced tax, saving up to $14,550 annually.

Victoria continues to lead in economic growth, with business investment rising by 1.6% over the past year—outpacing the national average. Since June 2020, over 113,000 new businesses have launched in the state, marking the highest growth rate nationwide.

Backed by a $627 million investment in the 2025/26 Budget, the government is committed to making it easier for businesses to start, grow, and thrive.