By Luke Voogt
Geelong MP and former trade unionist Christine Couzens has praised State Government business tax cuts weeks before they take effect on 1 July.
“All the changes that we have implemented are making people feel more confident in business,” Ms Couzens told parliament last month.
“For a lot of those… small and medium businesses, they will be able to employ more people.
“There will be those that cannot, and it will help them in other ways, but many of those businesses are now saying, ’Yes, we will employ more people’.”
In the 2018/2019 Victorian budget the government reduced payroll tax from 3.65 to 2.45 per cent for regional businesses.
The budget will also see the payroll tax threshold rise from $625,000 to $650,000.
“It was an Andrews Labor Government that did that for the benefit of businesses in my community, businesses that want to grow,” Ms Couzens told parliament.
“Whether they be a cafe, a tourist operator, a bookstore or a manufacturer, the benefits are significant for them.”
Her speech comes as the Federal Parliament debates Prime Minister Malcolm Turnbull’s plans to introduce corporate tax cuts.
Geelong Chamber of Commerce chief Bernadette Uzelac welcomed the State Government measures saying they would reduce barriers to employment.
“I think its general recognition by all parties that business is one of the economic drivers.“
Raising the threshold would give small businesses, which make up most of Geelong’s economy, more breathing space to employ people, she said.
“(Some of our members) say they are worried about employing another person because that will put them over the threshold.
“You can’t necessarily say it’s going to create jobs but it will remove that barrier to doing business.”
But Ms Uzelac called for State Government to raise the threshold further, saying Victoria had the second-lowest in Australia.
Queensland, the Northern Territory and ACT have thresholds of $1.1 million, $1.5 million and $2 million respectively, she added.
The chamber had no position on Federal Government’s proposed corporate cuts because they would not affect its members, Ms Uzelac said.
“Many of our members are either too small to pay that tax or are not incorporated businesses.
“However, if you do reduce some of the costs of business, theoretically that should create employment opportunities in the supply chain.”
Geelong Trades Hall secretary Colin Vernon declined to comment.
