The Australian Turntable Co has grown in Bendigo.

THE Coalition has promised to reduce payroll tax to one per cent in regional Victoria, an offer that has won praise from the Victorian Chamber of Commerce and Industry.

Labor, while in government, has made two successive cuts to the regional payroll tax.

VCCI chief executive Mark Stone AM said the measure reduces the cost of doing business outside of Melbourne, but he would like to see further increases to the threshold at which the reduced tax applies.

“Victoria’s payroll tax threshold remains the worst in Australia with more small businesses captured by Victoria’s anti-jobs payroll tax than any other state,” Mr Stone said.

“Other states exclude more small businesses from the payroll tax because they know that small business provides the most jobs.

“While the rate cut is welcome, if (Liberals leader) Matthew Guy and (Labor leader) Daniel Andrews are serious about creating more opportunities for business and jobs, they will commit to increasing the payroll tax threshold.”

Labor this week made claims it was boosting jobs in central Victoria, claiming its investment in business during its term would see Southern Phone Company build a second office in Bendigo and the Australian Turntable Co expand its Kangaroo Flat factory, together creating 45 new jobs.