Thursday, 14 November 2019

In reply to  Mrs McARTHUR (Western Victoria) (17 October 2019)

Mr PALLAS (Werribee—Treasurer, Minister for Economic Development, Minister for Industrial Relations):

In its first term, the Andrews Labor Government delivered more than $13 billion towards projects and programs that matter to regional Victorians. Building upon this, the 2019-20 Budget included a landmark investment of $2.6 billion for the Delivering for Regional and Rural Victoria Program.

The Program includes funding to strengthen the Department of Jobs, Precincts and Regions’ Rural and Regional Victoria group and Regional Development Victoria—ensuring a continued focus on the needs of regional communities, with associated projects and programs to support an estimated 4500 jobs. The Program will deliver a range of initiatives across the Barwon South West region, including $318.3 million for the Barwon Heads Road upgrade, $191.9 million for the Geelong City Deal, $128.0 million for the Geelong Performing Arts Centre and $20.0 million for the relocation of Barwon Health clinical facilities.

In addition, the 2019-20 Budget included a range of initiatives to support small businesses–through grants, mentoring services, workshops, online information and programs to support farmers, farming businesses and the wine industry - as well as policy changes designed to provide direct support to regional businesses. For example, to encourage businesses to relocate and expand in regional Victoria, a 10 per cent land transfer duty concession for commercial and industrial property transactions was introduced for contracts signed from 1 July 2019. This concession will increase by 10 percentage points each year until it reaches 50 per cent from 1 July 2023.

Further supporting regional businesses to grow and create jobs, the 2019-20 Budget outlined an increase in the payroll tax threshold from $650 000 to $700 000 as well as a phased reduction in the regional payroll tax rate to 1.2125 per cent—or 25 per cent of the metropolitan rate—by 2022-23. The reduction in the payroll tax rate will provide tax relief to around 3500 regional businesses.

The 2019-20 Budget also provided $150 million to establish the Victorian Jobs and Investment Fund, which will support investment, innovation, job creation and economic development across the state, including support for start-ups through funding for the continued operations of LaunchVic.

Finally, the Minister for Regional Development recently released updated guidelines for the Regional Jobs and Infrastructure Fund (RJIF), which supports community projects and assists businesses to create more jobs in regional Victoria. In the upcoming funding round, grants of up to $500 000 will be available to councils and council-sponsored infrastructure projects, with more than $30 million to be allocated through RJIF towards projects to make regional Victoria an even better place to live.

The impact of the Government’s significant investments in regional Victoria is reflected in labour force estimates reported by the Australian Bureau of Statistics. The latest available data show that Victoria’s regional unemployment rate is 3.7 per cent, the lowest in the country, and significantly below the level of 6.6 per cent when the Andrews Labor Government was first elected in 2014.

The Government is delivering on its commitments to the regions and is investing in infrastructure and jobs to ensure regional and rural Victoria continues to be a great place to live, work and invest.