VECCI calls for Payroll Tax relief following jump in unemployment

BOTH major parties should be concentrating on generating jobs for Victorians in the lead up to the November election following today’s disappointing unemployment figures, according to Victoria's most influential employers’ group.

With another 15,000 Victorians looking for work as unemployment jumps from 6.2 per cent to 6.5 per cent (seasonally adjusted), both parties should be looking for initiatives to encourage employment.

The chief executive of the Victorian Employers' Chamber of Commerce and Industry (VECCI) Mark Stone said that lifting the threshold at which a business starts paying payroll tax to $850,000 would bring payroll relief to 40,000 Victorian businesses.

"It would generate jobs almost instantly,” said Mr Stone.

"Employers across the state have told me that payroll tax is a major disincentive to employing more staff.

"It must be lifted from the current threshold of $550,000 to $850,000.

“These figures show that youth unemployment is a major concern, especially with a 20 per cent drop in apprenticeships in the past 12 months."

Mr Stone said the figures highlight the need to progress job-creating infrastructure projects throughout Victoria, such as East West Link Stages 1 and 2 and regional projects such as Ballarat Railway Station and Geelong’s Yarra Street Pier redevelopment.

These projects will create significant direct and indirect employment, benefit metropolitan and regional business and have an apprenticeship and traineeship element which will boost youth employment.

Mr Stone has spoken to leaders of both major parties in recent days about these issues, urging them to adopt VECCI’s recommendations.

"Victoria has a solid economic base but our potential will not be realised without policies that drive greater investment and business activity,” said Mr Stone.

www.vecci.org.au  

ENDS