Economic survival package to support businesses and jobs in Victoria
Premier Daniel Andrews has announced a $1.7 billion economic survival and jobs package to support small and medium sized businesses in Victoria.
Many business owners are finding economic conditions extremely difficult – particularly those who are faced with closing their doors.
Despite the challenging conditions, we expect these initiatives will provide some welcome support to local businesses.
The announcement on Saturday 21 March 2020 comprises the following measures.
Full payroll tax refunds
- The Government will provide full payroll tax refunds for the 2019-20 financial year to small and medium businesses with annual payroll up to $3 million. This measure gives $550 million back to businesses.
- Payments will commence from 27 March 2020 and save eligible businesses up to $113,975 a year, with businesses saving an average of $23,000. These eligible businesses employ around 400,000 people. This assistance is a refund, not a loan.
- Importantly, the eligibility threshold applies to each member of a group and does not remove the requirement for the eligible businesses to lodge payroll tax returns.
Payroll tax deferral
- The same businesses will also be able to defer any payroll tax for the first three months of the 2020/21 financial year until 1 January 2021, freeing up a further $83 million in cash flow.
Commercial tenants rent relief
- Commercial tenants in Government buildings can apply for rent relief – and private landlords are also being encouraged to undertake this measure. 2020 Land Tax payments will be deferred for eligible small businesses.
Land tax
- 2020 Land Tax payments will be deferred for land owners that have at least one taxable non-residential property and total landholdings below $1 million. The deferral is available until after 1 January 2021, but will need to be paid in full by 31 March 2021. The State Revenue Office will contact all eligible taxpayers.
Government supplier invoices to be paid imminently
- The Government will pay all outstanding supplier invoices within five business days – releasing up to $750 million into the economy earlier. The private sector is urged to do the same where possible.
Waiving of liquor licensing
- The Government will waive all liquor license fees for 2020 for affected venues and small businesses.
Business support fund
- The Government will establish a $500 million Business Support Fund to support the hardest hit sectors including hospitality, tourism, accommodation, arts and entertainment, and retail.
Working for Victoria Fund
- The Government will establish a $500 million Working For Victoria Fund to help workers who have lost their jobs find new opportunities, including work cleaning infrastructure or delivering food.
Victorian Government budget deferred
- Due to the uncertainty created by the COVID-19 pandemic, the 2020-21 Victorian Government Budget will be deferred.
Further details can be found here:
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.
COVID-19: A summary of Victoria's tax measures
The governments of Australian states and territories have also released independent stimulus packages. For an overview of all Australian measures, click here.
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