Victorian State Budget - Key Impact for Business

Victorian State Budget - Key Impact for Business

Victorian Treasurer Tim Pallas handed down the Andrews Government’s second Budget yesterday and while it doesn’t always get the same amount of media attention as the Federal budget, there are certainly some items that small & medium business and high net worth individuals need to be aware of.

The Victorian economy has performed well over the past 12 months, as evidenced by the Government’s projected operating surplus of $2.9bn for 2016-17. Economic growth is projected to be 3% over the next 12 months, which is up from 2.5%. The unemployment rate will continue its downhill run from 6.5% in 2015 to a projected 5.7% in 2017.

Australian’s love property! And so does the State Revenue Office!

Property-based taxes including stamp duty, land tax, the congestion levy and the Growth Areas Infrastructure Contribution are projected to contribute more than 42% of Victoria’s tax revenue base in 2016-17. So don’t expect any relief on stamp duty when you purchase your next house…..

** Important** Be aware, they are introducing a new tax compliance program which is expected to target non-compliance in the land tax and stamp duty areas.

In the land tax area, the government will focus on non-compliance in relation to the principal place of residence exemption, absentee owner surcharge, business partnerships that own land, and land held in trusts that have not yet been declared to the State Revenue Office. YOU ARE RESPONSIBLE for advising the SRO that you need to pay land tax. If you’re not sure, please contact the SRO or our office to discuss.

Also, the 2015-16 year saw the introduction of the foreign purchaser additional duty and absentee owner land tax surcharge in Victoria. This was the beginning of the state government’s initiative to tax foreign property developers and investors, and it has now been compounded by the government’s announcement that the rates of both surcharges will more than double in 2016-17.
Victoria is the only state that imposes these taxes.

Payroll Tax threshold changes

Does your business pay PAYROLL TAX? The payroll tax threshold is set to increase, although it is still below the national average. The Victorian government has decided to increase the payroll tax threshold by $100,000 over the next four years, to $650,000, plus from 1 July 2016, there will be a payroll exemption available for wages paid to displaced apprentices or trainees.

This appears to be in addition to the existing payroll tax rebate of up to $5,000 available for employers who hire apprentices and trainees under the Victorian Government’s Back to Work scheme.

This measure represents a significant incentive for employers to hire apprentices and trainees in Victoria.

Want to grow your business & improve cash flow?

You need SMART solutions for YOUR business, not just annual tax compliance! Get the SMART team working with you. Call SMART Business Solutions today on 03 5911 7000


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Join us for our first Mornington Peninsula retailers breakfast and learn how you can not only survive but thrive in an Amazonian retail environment.

There's been a lot of talk recently about the threat of giants like Amazon on bricks & mortar stores. But it doesn't have to be all bad.

Presented by Craig Bass from VendHQ and Shannon Smit & Nadia Hughes, Directors of SMART Business Solutions, here's a taste of what we'll be covering and why you need to get on board the Amazon Express

What you'll get from attending this session

*Using Amazon for your gain
*How to compete with Amazon by not competing with them
*How to use technology to win
*Breakfast

Who Should attend?

*Retail owners and managers
*Business that engage with and service retailers

When: Wednesday 6th September
Time: Arrive from 7 am for a 7.30am  kick off  - finish by 8.30am
Location: Benito's Restaurant, 1196 Nepean Highway, Mornington

FIRST 25 REGISTERED RECEIVE COMPLIMENTARY TICKETS! otherwise tickets are $25 per head but include a wonderful hot breakfast

A healthy cash flow is vital to keeping your business operating optimally. Should a large percentage of your customer's delay, their payments or – in the worst-case scenario – refuse to pay you, your business could be placed in a very difficult position.

Building wealth is not a product, it is a strategy

An event not to be missed:

The 3 Key topics of discussion will be:

1. Australia : As funny as it sounds, is a hidden tax haven

2. There is only one reason you should pay tax - to avoid paying more tax!

3. Recent increased tax exemptions that benefit small to medium businesses