On 20 March 2020, the Victorian premier announced a range of economic measures intended to assist businesses adversely affected by the COVID-19 pandemic. These measures, and their related client opportunities and further actions required, are listed below via title.
Payroll tax refunds
Victorian businesses with less than $3m in Australian taxable wages will effectively pay $0 in payroll tax for the 2019/20 income year. Also, their payroll tax obligations for the September 2020 quarter will also be waived.
Where a business has already made payments of payroll tax during the year, they will be entitled to a refund. The Victorian State Revenue Office will directly contact a business who is eligible to receive the refund to discuss the payment method. It is expected that refunds will begin being paid from 27 March 2020.
All business must, however, continue to keep lodging monthly payroll tax returns despite the balance of tax payable being $0.
Tailored business Government grants
The government announced that eligible businesses will be entitled to receive assistance in the form of a grant from the state government. To be eligible, a business must show that they have been adversely affected by the COVID-19 pandemic, and be in one of the following industries:
Hospitality
Tourism
Accommodation services
Arts and entertainment, and
Retail
All businesses looking for a grant must apply via the Business Victoria website. Coronavirus business support website is here, with a direct link to the Economic Survival form here.
Further details regarding the grants will be made available when known.
Land tax deferral
A 12-month deferral of land tax is available for certain owners who have less than $1m in total taxable landholdings. The criteria for eligibility is that the owner must have at least one taxable non-residential property, which includes:
Commercial property
Industrial property, or
Vacant land (which is not residential vacant land)
The Victorian State Revenue Office will contact eligible taxpayers for this deferral. However, all taxpayers may check their total taxable landholdings via My Land Tax at the SRO website.
Taxpayers who have already paid instalments of land tax for the 2020 year will not be entitled to any refund of land tax already paid. However, the amount owing is still eligible for a deferral.
Rent relief for some businesses
Businesses who are commercial tenants in government-owned buildings are encouraged to apply for rent relief. Further information will be made available once known.
