Tax on big corporations to raise $3 billion to fund mental health care

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Tax on big business to raise $3 billion to fund mental health cares through parliament

  • Companies Paying More Than $10 Million in Wages Pay 0.5 Percent Tax
  • Increases to one percent for companies with over $100 million on the books
  • The government said it would affect five percent of employers in Victoria
  • Bill passed parliament with 11 cross-benchers voting with the government

The Victorian government’s mental health tax becomes law.

State Tax and Mental Health Bill Amendment Bill passed 2021 by the Legislative Council from 24-14 and will now go to the governor for royal assent.

Eight of the state’s 11 cross-benchers voted with the Labor government to pass the bill.

Under the Mental Health and Wellbeing Levy, companies paying more than $10 million in wages nationally will pay an additional 0.5 percent surcharge as of January 1, 2022.

Companies with a national payroll of more than $100 million pay one percent.

Treasurer Tim Pallas said the tax will affect less than five percent of employers and is expected to bring in nearly $3 billion in four years.

The charge was a lead recommendation by the state's royal commission on mental health, which found that the state's system is operating in crisis mode, abandoning patients and requiring a full rebuild.

The charge was a lead recommendation by the state’s royal commission on mental health, which found that the state’s system is operating in crisis mode, abandoning patients and requiring a full rebuild.

The charge was a lead recommendation by the state’s royal commission on mental health, which found that the state’s system is operating in crisis mode, abandoning patients and requiring a full rebuild.

The bill stipulates that all proceeds from the levy must be spent on the provision of mental health care.

“We are committed to making a difference in the lives of Victorians through better mental health support, whether that be through access to health care providers, counselors, therapists, support, suicide prevention, education programs,” Attorney General Jaclyn Symes said. against the Senate.

Reason MP Fiona Patten, who voted in favor of the tax, said ill mental health costs the Victorian economy more than $14 billion a year, including direct costs to employers of $1.9 billion.

“I don’t think there are many Victorians who wouldn’t say we need to fix our public mental health system and we understand it needs money to do that,” she said.

Shooters, Fishers and Farmers Party MP Jeff Bourman supported the bill but insisted he was “not a fan of new taxes.”

“If you want to expand the service, it has to come from somewhere,” he said.

Treasurer Tim Pallas said the tax will hit less than five percent of employers and is expected to bring in nearly $3 billion in four years

Treasurer Tim Pallas said the tax will hit less than five percent of employers and is expected to bring in nearly $3 billion in four years

Treasurer Tim Pallas said the tax will hit less than five percent of employers and is expected to bring in nearly $3 billion in four years

An attempt by the opposition to amend the bill to exempt universities from the new tax has received insufficient support.

Opposition spokesman for higher education Matt Bach said universities have been dealt a “devastating blow” from the coronavirus pandemic and the subsequent loss of international students.

“Universities are paralyzed, they are on their knees,” said the former teacher.

Mr Pallas said the Victorian government has provided more than $1 billion to help universities during the pandemic and will continue to support the sector.

The bill also introduces a 6.5 percent premium stamp duty on transactions over $2 million, as well as land tax increases on investment and commercial real estate.

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