The Victorian government has announced new reforms that will remove unnecessary red tape for hospitality businesses, including payroll tax cuts and simplified liquor licence applications.
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. As of 1 July, they will only need to apply for a liquor licence with the latter.
By simplifying the process for clubs, 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.
Community Clubs Victoria CEO Andrew Lloyd welcomes the reforms, however, remains sceptical of the benefits it will deliver.
“We welcome such announcements, but for small not-for-profit clubs, the government needs to really understand that they need more consideration. We’d like to see some process mapping from an experience point of view as to whether the high-level policy announcements actually do translate to better outcomes,” he told Club Management.
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’s been 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,” Premier Jacinta Allan said.
“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.
With additional reporting by Molly Nicholas. The story was originally published on Club Management’s sister title, Australian Hotelier.