In Victoria, the Allan Labor Government will remove unnecessary red tape for hospitality businesses with new reforms, including payroll tax cuts and simplified liquor license applications with cost and time savings.
Until now, businesses who wish to apply for a liquor licence have been required to obtain approval from both the local council and Liquor Control Victoria. Moving forward, they will only need to apply for a liquor licence from the latter, as of July 1, 2025.
By simplifying the process for pubs, cafes and restaurants, the reform will reduce the time it takes to get a liquor license by up to six months and result in cost savings of up to $7,000.
More than 600 businesses will benefit from these changes each year when submitting a new application, and a further 14,000 existing liquor license holders could benefit if they seek to change their licence.
Paddy O’Sullivan, AHA (Vic) CEO, welcomed the reform, telling Australian Hotelier that it will make it easier for publicans to invest in renovating their pubs.
“Cutting duplication between planning permits and liquor licences is something AHA (Vic) has long called for. Pubs will now save time, money, and paperwork, allowing them to focus on serving their communities, not filling out forms.
“Removing the dual-approval burden could save venues up to $7,000 and get new pubs open up to six months faster,” O’Sullivan stated.
Further, the reforms will make it easier for hospitality businesses to introduce outdoor dining. Temporary changes made during the pandemic removing the need for a planning permit will be made permanent, allowing more venues to serve customers outdoors in underutilised spaces such as streets and footpaths.
Minister for Planning Sonya Kilkenny commented: “These planning changes are all about saving our local pubs, cafes and restaurants time and money and letting them focus on what they do best – serving great food, creating local jobs, and bringing people together.”
Demonstrating its commitment to small businesses, the Victorian Government lifted the payroll tax-free threshold from $700,000 to $900,000 at the start of the current financial year. As of 1 July 2025, it will be raised to $1 million.
This change is expected to positively impact approximately 6,000 businesses who will no longer pay any payroll tax. A further 22,500 businesses are expected to pay a reduced amount, saving them up to $14,550 each year.
“This is about jobs, jobs, jobs,” says Premier Jacinta Allan, who made the announcement at the Terminus Hotel on Sunday 22 June alongside Kilkenny and Treasurer Jaclyn Symes.
“Behind every job is a worker, behind every small business is a family – and I’m on their side. Our cafes, bars and restaurants are what we’re famous for. Let’s give them a hand so they’re not drowning in red tape,” Allan continued.
Symes added: “Victoria already has the strongest growth in business investment of the states over the last decade – we want to keep it that way.”
These reforms build on the Victorian Government’s reform to abolish the upfront cost of stamp duty and replace it with a more efficient Commercial and Industrial Property Tax – making it easier for businesses to set up and move, creating 12,600 new jobs and boosting the Victorian economy.
The tax reform, along with the reduction of business insurance duty and changes to payroll tax are expected to save Victorian businesses approximately $1.35 billion in the next four years.