Payroll tax relief: victoria's $1 million threshold boost for small businesses

You've probably heard the saying "every dollar counts".. and for small businesses that's more than just a saying. The Victorian Government has just increased the payroll tax-free threshold from $900,000 to $1 million, effective from 1 July 2025.

• What this means: If your total wages bill is less than $1 million for the financial year, you'll likely pay less payroll tax, or none at all. This means more money stays in your business.

• What you should do: Don't just assume you're in the clear. Get in touch with your bookkeeper. They can help you understand exactly how this new threshold applies to your business and ensure your payroll is correctly set up. It might be the perfect opportunity to review your budget and see where that extra cash can be best put to use.

Think of it as a little breather, a chance to maybe invest a bit more in your team, purchase that new piece of equipment you've been eyeing or just have a slightly less stressful tax time.

It's definitely worth having a chat with your bookkeeper to see exactly how this change will affect your bottom line. They can break it down in plain English and help you figure out the best way to use that little bit of extra wiggle room.

Disclaimer

This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.