Mr O'Brien, a former state treasurer, has pledged to slash payroll tax by lifting the tax-free threshold from $700,000 to $1.6 million. 42,000 Victorian businesses pay the tax which is charged on wage bills over 650-thousand dollars.... the coalition would also change the rules so only business with a $2 million wages bill would pay the full rate of 4.85 per cent. it could save some businesses $43,000.