The CEO of Victoria’s largest family-owned aged care provider and the head of the peak body for aged care providers have pleaded with the VIC government to exclude the aged care sector from increases to payroll tax in the state.

At the recent Victorian state budget, payroll tax was increased by 0.5% for businesses with national payrolls of more than $10 million, plus an additional 0.5% for businesses with national payrolls over $100 million.

“No sooner were additional aged care funds revealed by the federal government, did the state government bury their snouts into that very funding, by increasing payroll tax rates effective July 1, 2023, which will cost TLC an additional $1.3m in payroll tax per annum,” The CEO of For Profit aged care provider TLC Healthcare, Lou Pascuzzi, told The Herald Sun.

Lou said homes will close and new projects delayed unless funding is indexed to real cost increases.

“We urge the state government to reconsider this decision,” Tom Symondson, CEO of Aged and Community Care Providers Association (ACCPA), told Herald Sun.

Charities will be exempt from the payroll tax, however about one third of aged care facilities are privately owned Australia wide.

Lou said its energy bill is set to double from 1 July to $850,000 over the next 12 months.

“This significantly reduces the net position of any increase in federal government aged care funding,” he added.