From Tuesday 1 July 2025, there will be changes to the tax-free threshold, liquor licences and planning permits for outdoor dining for food and hospitality businesses.

Changes to the tax-free threshold

The payroll tax-free threshold will increase from $900,000 to $1 million. This will mean more small businesses will pay no payroll tax.

It is expected that almost 6,000 businesses will no longer pay any payroll tax. A further 22,500 businesses will save up to $14,550 per year.

Changes to liquor licences

It will now be faster and easier to open a restaurant to serve alcohol. This change also covers dining outdoors.

Businesses will only need to apply for one liquor license through Liquor Control Victoria (LCV). You will not need to apply for a second liquor licence through your local council.

This change will reduce the time it takes for food and hospitality businesses to get a liquor licence. Businesses can expect to save up to 6 months and $7,000 with the reduced wait times.

This will impact around 600 businesses annually who apply for a new licence. A further 14,000 existing liquor license holders could also benefit from these changes if they’re looking to vary their license.

Changes to planning permits for outdoor dining

Food and drink venues will no longer need an additional planning permit to add outdoor dining. This will allow businesses to serve more customers in unused spaces. This may include streets, footpaths and carparks without a planning permit.

More on payroll tax

• Understand what taxes you need to pay with Employee payroll tax and PAYG.