25 March 2020
by David Prichard and Andrew Law
- Related topics
- Corporate Tax & Regulatory
Australian States and Territories have now provided an update to their own stimulus packages which focus on small to medium businesses. The packages are focused on payroll tax and financing. A high level summary of the packages available from each State/Territory has been summarised below. As always if you have further questions or want to know how these would apply to your own personal circumstances please reach out to ESV – we are here to help.
- A waiver of payroll tax for 3 months for businesses with payrolls of up to $10m Australia wide.
- The payroll tax threshold will be raised to $1m in 2020-21.
- A range of fees and charges will be waived for small businesses (including bars, cafes, restaurants and tradies).
- A $500m loan facility will be created to support businesses (interest free for the first 12 months).
- Payroll tax deferral of up to 6 months is available for all businesses by applying online. The Qld Office of State Revenue will also work with affected businesses to create repayment plans for the deferred tax liabilities.
- Small businesses that pay payroll tax will receive a one-off grant of $17,500.
- The payroll tax threshold will be raised to $1m with effect from 1 July 2020.
- Payroll tax payments to be deferred until 21 July 2020 for businesses impacted by COVID-19.
- Interest free loans for up to 3 years for small businesses with turnover of less than $5m.
- A payroll tax waiver for the last 4 months of this financial year for hospitality, tourism and seafood industry businesses.
- Businesses with an annual payroll of up to $5m in Australian wages can apply for waiver of payroll tax payments for the 3 months up to 30 June 2020.
- Youth employment payroll tax rebate scheme to encourage businesses to employ young people from 1 April 2020.
- One-off $5,000 grants for businesses that hire an apprentice or trainee.
- Small and medium-sized enterprises with a Victorian payroll of less than $3 million will receive a cash refund of payroll tax. The cash refund is expected to be back in taxpayers accounts by the end of the week.
- $500m is to be put into a fund for hardship payments, small grants and tailored support to businesses.
- A range of other measures such as the waiving of 12,500 venues’ liquor licence fees.
- Commercial tenants in government buildings will also be able to apply for rent relief.
Rather than providing tax-related measures, the South Australian Government has announced a $350m stimulus package by way of infrastructure projects:
- Major new infrastructure maintenance projects including road and hospital upgrades;
- New tourism infrastructure; and
- An expanded Economic and Business Growth Fund to support local industry.
Australian Capital Territory
- Six month waiver on payroll tax for hospitality, creative arts and entertainment industries.
- Interest-free deferrals of payroll tax commencing 1 July 2020 for all businesses up to a payroll tax threshold of $10 million.
- $750 rebate for small business owners to assist with power bills.
- $10,000 grants available for purchases of goods and services or permanent physical improvements to a business to help improve its efficiency or customer experience. This will be increased by a further $10,000 if the business spends an additional $10,000 of their own funds.
- Payroll tax exemption for NT employees extended until 30 June 2021.
- Grants for businesses to upgrade their online business presence or restructure their premises to accommodate capacity limits and social distancing requirements.
Contact your ESV Engagement Partner on 9283 1666 if you wish to find out more.