State Government response Covid-19In addition to the large scale Federal Government initiatives announced progressively, it is great that State Governments have also come to the party as far as announcing wide scale State Tax changes.
BELOW ARE THE MAIN ONES THAT WOULD AFFECT OUR CLIENTS:
NSWThe Office of State Revenue, Revenue NSW have announced that Payroll tax customers whose total grouped Australian wages for the 2019/20 financial year are no more than $10 million will have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July.
For those customers who lodge and pay monthly and whose total Australian wages will be no more than $10 million for the current financial year, no payment for the months of March, April or May 2020 will be required.
For the year ended 30 June 2021, the threshold has increased from $900,000 to $1m.
QUEENSLANDBusinesses that have been affected by the coronavirus (COVID-19), may be able to apply for a relief package to defer paying payroll tax returns until 31 July 2020.
In addition businesses may be eligible for a loan to retain employees and maintain operations. The $500 million concessional loan facility will include low interest loans of up to $250,000 for carry on finance with an initial 12-month interest free period for businesses to retain staff.
VICTORIAThe last state to announce its responses have responded with a 3 stage $1.7 billion economic survival package.
The Victorian Government has announced $500 million to establish a Business Support Fund to assist small to medium businesses most impacted by the COVID-19 outbreak.
The Victorian Government will work with the Victorian Chamber, Australian Hotels Association and Ai Group to administer the fund to help businesses survive and keep people in work.
To register your interest in receiving more details of the program please go the website page : https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/economic-survival-and-jobs-package
Under the Government’s package, any payroll tax that has been paid by eligible businesses in the first three quarters of this financial year will be handed back by the Government to provide a cash injection. Any payroll tax that was payable in the last quarter will be waived.
An important measure implemented is that $550 million will go to 24,000 small and medium-sized enterprises with a payroll of less than $3 million as a payroll tax refund.
It is hoped the cash will help keep about 400,000 workers employed and ease the growing stress being felt by the entertainment and hospitality industry.
It is a refund back in the accounts of businesses.
The third component of the package, worth more than $600 million, includes a range of measures such as the waiving of 12,500 venues’ liquor license fees due this month and worth a total of $30 million.
Commercial tenants in government buildings will also be able to apply for rent relief, a measure the Government is encouraging private landlords to offer as well.
These measures are designed to ease the burden on Businesses that employ many people particularly in the entertainment and hospitality industry.
Lowensteins will be here to assist our clients in understanding how to access these concessions.