LEVIES – VICTORIA

Victoria’s debt levies haul in far more than expected

roymorgansocial Leave a comment

Original article by Patrick Durkin, Gus McCubbing
The Australian Financial Review – Page: 11 : 13-Nov-24

The Victorian government’s budget update shows that the state’s net debt is slated to top $188bn by 2027-28. The update also reveals that the government’s Covid debt levies are expected to raise $529m more over four years than had been forecast in the 2023 budget. The levy on businesses with payrolls exceeding $10m had been expected to raise $3.9bn over four years, and the levy on property investors was slated to raise $4.7bn. Meanwhile, the government’s employee expenses rose by 7.94 per cent to $15.48bn in 2023-24.

CORPORATES

Heavy price as cash crisis crushes Victoria

roymorgansocial Leave a comment

Original article by Shannon Deery
Herald Sun – Page: 7 : 24-May-23

Victoria’s Treasurer Tim Pallas says the Covid debt levies announced in the state’s 2023 budget are temporary, targeted and responsible. Victorians who own holiday homes and investment properties will pay a new land tax which is expected to raise around $4.7bn over the forward estimates period and will remain in place for a decade. There are fears that the levy will worsen the housing crisis by pushing up rents and deterring investment in the rental market. The government also expects to raise $3.9bn via a new payroll tax levy on businesses with a wages bills of more than $10m. The state’s own wages bill is forecast to rise by $5bn over the next four years, despite plans to shed up to 4,000 public sector jobs. Opposition leader John Pesutto says the budget is mean and nasty, adding that it shows that Victoria is broke.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, LIBERAL PARTY OF VICTORIA

Victorian budget a risk to recovery

roymorgansocial Leave a comment

Original article by Rachel Baxendale, Geoff Chambers
The Australian – Page: 1 & 6 : 21-May-21

The Victorian government’s May 2021 Budget shows that the state’s net debt will blow out to $156.3bn by mid-2025. However, the government has confirmed that the state’s deficit for 2020-21 will be much lower than previously forecast, at $17.4bn. The key measure announced in the Budget is a payroll tax surcharge of 0.5 per cent on businesses with a wages bill of more than $10m; this will rise to one per cent for businesses with wages costs of more than $100m. The surcharge is slated to raise $387m in 2021-22 and about $3bn over four years, with the proceeds to be used to finance a $3.8bn mental health package. The levy has been criticised by business leaders and federal Treasurer Josh Frydenberg, who warn that it will cost jobs and undermine the national economy’s recovery from the pandemic.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY