The Victorian Government is taking significant steps to boost the economy by raising the payroll tax-free threshold from $900,000 to $1 million starting July 1, 2025. This change will exempt around 6,000 businesses from payroll tax and reduce the tax burden for an additional 22,500 businesses, saving them up to $14,550 annually. Additionally, the government is simplifying the liquor licensing process by removing the need for dual approvals from local councils and Liquor Control Victoria, which will expedite the opening of new restaurants and the expansion of outdoor dining areas, saving businesses up to $7,000 and reducing the time to obtain a liquor license by up to six months.

These reforms are part of a broader strategy to support business growth and economic development in Victoria. The government has also made temporary pandemic-era changes to outdoor dining permanent, allowing venues to use underutilized spaces without a planning permit. This initiative, along with the abolition of business insurance duty and the introduction of the Commercial and Industrial Property Tax, is expected to save Victorian businesses around $1.35 billion over the next four years. The Victorian Budget 2025/26 includes a $627 million investment to further support businesses and drive economic growth, contributing to a robust increase in the state's gross state product and business investment.