5 March 2026
Regional businesses pushed to the brink as tax burden drives jobs interstate
Regional businesses are being pushed to the brink, with Victoria’s soaring taxes and red tape driving employers, investment and jobs interstate.
Victoria now ranks last in Australia for business competitiveness, according to the Business Council of Australia’s Regulation Rumble report, which cites uncompetitive payroll taxes, property taxes and heavy licensing requirements.
The Nationals Member for Euroa, Annabelle Cleeland MP, said local operators across regional Victoria are increasingly frustrated and struggling to stay afloat.
“They’re not asking for handouts. They’re asking for a fair go,” Ms Cleeland said.
Ms Cleeland said meetings with businesses across the region reveal growing alarm about the rising cost of operating in Victoria, including a recent conversation with long-time regional business owner Travis Taylor.
Mr Taylor, who operates Mitre 10 Heathcote and Seymour Hardware Group among other enterprises, built his business into a regional success story with more than $13 million in annual turnover and up to 53 employees before rising costs forced him to cut staff to 24.
“For every dollar Travis earns, around 63 cents is swallowed by taxes and charges,” Ms Cleeland said.
“Payroll tax, land tax, the Emergency Services Tax and a growing list of charges are making it increasingly difficult for businesses to survive.
“Since 2014, nearly 70 new or increased taxes have been imposed on Victorians by the Allan Labor Government.”
Mr Taylor has now made the difficult decision to sell his Victorian operations and relocate interstate.
“When businesses like Travis’s leave, regional communities pay the price through lost jobs, apprenticeships, investment and the confidence that keeps our local economies strong,” Ms Cleeland said.
Ms Cleeland said Mr Taylor’s experience reflects a broader problem facing Victoria’s economy.
Victoria’s payroll tax system is among the most punitive in the country, with a 6.85 per cent rate and one of the lowest tax-free thresholds nationally, while businesses face significantly more regulatory requirements than in other states.
“That should concern every Victorian,” Ms Cleeland said.
“Regional businesses are the backbone of our communities. They create local jobs, support local suppliers and sponsor local sport and community groups.
“When government settings make it harder to invest, employ and grow, the consequences are felt across entire towns.”
Ms Cleeland said urgent tax and regulatory reform is needed to restore business confidence.
“Regional Victoria cannot afford more tax hikes, more waste or more uncertainty,” she said.
“We need a government focused on restoring confidence, cutting red tape and backing the businesses that keep our communities strong.
“Regional Victoria cannot afford to keep losing the businesses that create jobs and drive investment in our communities.”