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Ashfords 2022-2023 Victorian State Budget Overview

The 2022-23 Victorian State Budget was handed down by the Victorian Treasurer on 3 May 2022 with the Government forecasting a net operating deficit of $17.6 billion this financial year.

The budget mainly focused on health, education and infrastructure projects within Victoria and introduced no key changes to Victoria’s current taxes and duties.

The budget did fall short of expectations in providing assistance to businesses with no tax relief considered within budget.

Here is our summary of the key takeaways:

 

Tax and Revenue Related Measures:

No changes to payroll tax, land tax or transfer duties were announced in the budget. However, although there are no new key tax measures introduced, direct property taxes will continue to be the source of over 50% of new revenue for the government due to increased transactional volume and rising land values.

From 1 July 2023, gambling tax rates will be equalised for all electronic machine operators. Electronic gaming machines operated by a casino licence operator will be subject to the same tax structure as electronic gaming machines operated by venue operators with club entitlements. Commission-based play on gaming machines will continue to be taxed at 10%.

From 1 July 2022, the sale or transfer of certain wheelchair accessible commercial passenger vehicles will be exempt from motor vehicle duty. The exemption will only apply to the sale or transfer of eligible vehicles that provide unbooked services and are less than 2 years old.

Key Business Measures:

Two Year Sick Pay Guarantee Pilot Program

  • The two year sick pay guarantee pilot program provides funding to support casual and insecure workers in selected industries who do not otherwise receive sick or carer’s pay. More than 150,000 Victorians with insecure work (casual employees) in eligible occupations will be able to participate in the pilot, with the Government providing up to five days’ sick or carer’s pay per annum at the national minimum wage. Occupations covered in the first phase of the pilot include hospitality workers, food trades workers, chefs and kitchen hands, supermarket and supply chain workers, retail and sales assistants, aged and disability care workers, cleaners and security guards.

Victorian Industry Fund to support Victorian Businesses

  • The Government has introduced a $120 million Victorian Industry package to support sovereign capability, advanced manufacturing, attract business investment, build supply chains and support small business and employment. The fund prioritises strategically important areas including health, defence, agriculture and renewable energy while helping to reach the Government’s Jobs Plan target of creating 400,000 jobs by 2025. This fund includes:
  • $40 million in grants over two years to help rapidly-growing businesses expand further through the Victorian Industry Investment Fund – supporting companies in key sectors like health, food production, technology, advanced manufacturing and business services to develop more products, create jobs and boost sales.
  • $40 million International Investment Attraction Fund encouraging forward-thinking global firms to set up in Victoria, creating local jobs, boosting Victorian manufacturing and supporting new opportunities for local businesses to grow and develop.
  • $20 million for an Equity Investment Pilot Fund to attract highly innovative companies particularly in areas such as medical technology.
  • $4.5 million to fund 300 Digital Jobs for Manufacturing internships to train the Victorian workers in this industry.

If you have any questions related to the State Budget, please don't hesitate to contact your Ashfords Trusted Advisor or Ashfords reception on 9551 2822


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