The Victorian Government has implemented sweeping changes to benefit food and hospitality businesses, effective July 1, 2025, with measures expected to save operators thousands of dollars and months of waiting time.
Payroll tax relief expands
The state has raised its payroll tax-free threshold from $900,000 to $1 million, delivering immediate relief to small restaurant operators. The change will eliminate payroll tax obligations for nearly 6,000 businesses entirely, while an additional 22,500 businesses will save up to $14,550 annually.
Liquor licensing streamlined
Restaurant operators seeking to serve alcohol will now navigate a simplified licensing process through a single application with Liquor Control Victoria, eliminating the previous requirement for dual applications through both state and local council authorities.
The streamlined process is projected to cut licensing timeframes by up to six months and reduce costs by approximately $7,000 per application. The changes will impact around 600 businesses applying for new licenses annually, with 14,000 existing license holders also positioned to benefit when seeking license variations.
Outdoor dining barriers removed
Food and beverage venues can now expand outdoor dining operations without additional planning permits, allowing businesses to utilise previously restricted spaces, including streets, footpaths, and parking areas. The change aims to help operators maximise customer capacity in underutilised areas.
The combined reforms represent a significant regulatory overhaul designed to reduce administrative burden and accelerate business growth in Victoria’s hospitality sector, which has faced ongoing challenges with compliance costs and lengthy approval processes.
The changes took effect Tuesday, with businesses able to begin taking advantage of the new framework immediately.
