The first 10 per cent duty concession for commercial and industrial properties came into effect on July 1, with a further 10 per cent reduction locked in at the beginning of every financial year until July 2023.
It not only presents business opportunities for new operators but also minimises costs for businesses wishing to expand or move their operations across regional Victoria.
It is anticipated 2400 businesses will take advantage of the concession each year, saving an average $17500 by 2023.
The regional payroll tax rate will reduce 0.4 percentage points each year from 2020-21 until 2022-23, at which point it will be a quarter of the metropolitan rate.
It will fall to 1.21 per cent by 2022-23, meaning regional businesses in Victoria will continue to have the lowest payroll tax rate in the country.
Around 3500 regional businesses are expected to benefit from the payroll tax relief.
From July 1, businesses will no longer have to have their business address registered in regional Victoria to take advantage of the reduced regional rate, meaning more businesses will qualify.
Instead, businesses will be eligible if 85 per cent of wages are paid in the regions.
Member for Northern Victoria Mark Gepp said the state government was building on its record of supporting jobs and growth in regional Victoria.
‘‘Not only are we making further cuts to the regional payroll tax rate and expanding the eligibility criteria, we’re now cutting stamp duty on commercial property — helping to drive regional investment,” he said.