Liberals and Nationals pledge to remove payroll tax burden on all Victorian schools 

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No Victorian school will pay payroll tax under a new commitment announced today by the Victorian Liberals and Nationals. 

A new report by Victoria’s independent budget watchdog has found levying payroll tax on public schools has “no net impact on the state budget.”

It said while Victorian public schools will pay a total of $574.3 million in payroll tax in 2026-27, this cost has no impact on the budget bottom line as all payroll tax revenue is returned to consolidated revenue.

This new commitment builds on the Liberals and Nationals’ existing policy to scrap Labor’s unfair and regressive Schools Tax and will ensure no Victorian school will be subject to payroll tax. 

Shadow Minister for Education, Jess Wilson, said: “Under a Liberals and Nationals Government no school, public or private, will pay payroll tax.”

“The budget watchdog has found levying payroll tax on public schools has no impact on the state’s bottom line, with this inefficient tax only adding unnecessary red tape for educators,” Ms Wilson added.

“The Labor Government has been duplicitous in its desperate attempt to defend its unfair and punitive Schools Tax by claiming public schools are required to pay payroll tax, when in reality this has no impact on the state budget.

“The Liberals and Nationals believe in supporting, not taxing, opportunity and choice. Removing payroll tax from all schools is a commonsense policy that will lower costs for families and ease administrative burdens for schools across the state.”

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