Victorian Coalition Dangles Payroll Tax Cuts Ahead of November 28 Election

Victorian Opposition Leader Jess Wilson has promised to lift the state's payroll tax-free threshold to $1.2 million by 2028–29, the headline pledge in a 10-year economic plan pitched to small businesses ahead of the November 28 state election.

The Coalition would also cut the metropolitan payroll tax rate to 4.8% from 2030–31 and estimates about 23,000 businesses would benefit. The pitch lands after the Business Council of Australia recently ranked Victoria the country's least business-friendly state.

What tax relief is on the table?

The Liberals and Nationals have committed to introducing no new state taxes and not increasing existing ones. They'd scrap the Emergency Services and Volunteers Fund levy and restore the previous Fire Services Property Levy arrangements.

If elected, the Coalition says it would introduce legislation before Christmas to cut costs for commercial property owners and businesses paying property outgoings.

Land tax is in the mix too. The Coalition promises to progressively lift Victoria's land tax-free threshold from $50,000 to $300,000 over five years. It estimates 280,000 Victorians would save up to $975 annually, including small business owners with taxable commercial properties. Businesses leasing their premises wouldn't necessarily benefit directly.

Labor has also pledged to restore the $300,000 threshold — but over six years, not five.

How would red tape get cut?

The Coalition wants to replace 79 separate local business laws with consistent statewide rules covering activities such as footpath trading, skip bins and construction sites.

Its plan would make Service Victoria a one-stop shop for business approvals, letting operators submit and track planning, food registration and liquor licensing applications. A proposed Business Approvals Concierge would help businesses resolve delays and deal with conflicting government advice.

Home-based businesses get a look-in as well. The Coalition plans to relax restrictions on floor space, commercial vehicles and customer collections. Current rules generally restrict business activities to 100 square metres or one-third of a dwelling, allow only one commercial vehicle and limited customer collections. The opposition says the changes would make it easier for sole traders and small operators to expand without leasing commercial premises or seeking additional planning approvals.

Where does the Coalition stand on working from home?

The Coalition supports flexible working but opposes Labor's proposal to give eligible employees the right to work from home two days a week. The Liberals and Nationals joined crossbench MPs in referring the legislation to a parliamentary inquiry in September, delaying its passage.

Wilson has said existing arrangements would remain unchanged under a Coalition government, but she hasn't committed to Labor's proposed legal entitlement. Labor's bill lapsed on November 3 ahead of the election.

What about tolls and apprentices?

Under the Coalition proposal, eligible road toll expenses would be capped at $50 per week for two years from July 1, 2027. The scheme covers cars, light commercial vehicles and small business fleets of up to five vehicles — potentially cutting costs for tradies, couriers and other operators using Melbourne's toll roads. Motorists would claim quarterly rebates through Service Victoria rather than receive automatic discounts.

The Coalition estimates more than 100,000 Victorian households and small businesses would benefit. Labor has proposed a lower $30 weekly cap, also covering eligible small business fleets of up to five vehicles.

On skills, the Coalition has pledged a $115 million Accelerating Apprenticeships Fund. Employers could claim quarterly rebates covering 50% of eligible off-the-job training expenses for apprentices on the Australian Apprenticeships Priority List. The initiative targets skills-shortage industries including construction, hospitality and automotive services. The Coalition would also establish 10 technical colleges offering vocational education to up to 5,000 students annually.

What changes on energy and gas?

The Coalition would reverse restrictions on gas appliances and reopen conventional onshore gas exploration in Victoria. It argues increasing domestic gas supply would improve energy security and reduce costs for businesses, particularly manufacturers and energy-intensive operators.

Within 60 days of taking office, the Coalition says it would seek proposals from gas producers for new exploration projects and additional supply. Any impact on business energy bills, however, is likely to depend on future gas supply, market conditions and how the reforms are implemented.

With both major parties now promising land tax relief but split on payroll tax, tolls and gas, Victorian business owners have a sharply differentiated choice on November 28.