State Government Stimulus Package Fact Sheet Updated 27 March 2020

Background:

In addition to the Federal Government’s  recent stimulus package announcement, State and Territory Government’s affected by the COVID-19 outbreak have also announced measures that operate in addition to federal measures. Please note that in many cases these measures require legislative approval and therefore cannot commence until voted on by Parliament. The LFRA will continue to provide updates on this as information becomes available.

The LFRA is pleased to note assistance from the NSW Government with regards to payroll tax for payrolls over $10 million.  This is something that the LFRA has been advocating for on behalf of its’ members.

NEW SOUTH WALES

1. Deferral of payroll tax for business with payrolls over $10 million for six months (up to $4 billion deferred). Businesses with payrolls of $10 million or less received a three-month waiver on payroll tax in the first package. These businesses will now get an additional three month deferral as well.
2. $450 million for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the remainder of 2019-20).    This means these businesses will save a quarter of their annual payroll tax bill in 2019-20.
3. $56 million to bring forward the next round of payroll tax cuts by raising the threshold limit to $1 million in 2020-21.
4. $80 million to waive a range of fees and charges for small businesses.
5. $250 million to employ additional cleaners of public infrastructure such as transport assets, schools and other public buildings.
6. More than $250 million to bring forward maintenance on public assets including social housing and crown land fencing.
7. The creation of a $1 billion Working for NSW fund to sustain business, create new jobs and retrain employees.
8. Deferral of the parking space levy for six months.
9. Deferral of rents for six months for commercial tenants with less than 20 employees in all Government-owned properties.

VICTORIA

1. $1.7 billion economic survival and jobs package.
2. Full payroll tax refunds for the 2019-20 financial year to small and medium-sized businesses with payroll of less than $3 million.
3. Payments will start flowing next week and will save eligible business up to $113,975 a year, with businesses saving an average of $23,000. These businesses employ around 400,000 workers. This assistance is a refund, not a loan.
4. 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 cashflow.
5. Commercial tenants in government buildings can apply for rent relief – a move private landlords are also being encouraged to undertake – and 2020 land tax payments will be deferred for eligible small businesses.
6. $500 million to establish a Business Support Fund. The fund will support the hardest hit sectors, including retail, hospitality, tourism, accommodation, arts and entertainment.
7. 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. The Government will waive liquor licensing fees for 2020 for affected venues and small businesses.

QUEENSLAND

1. $4 billion in measures to support Queenslanders’ health, their jobs and businesses.
2. $300 million household relief package will give Queensland households $200 off their utility bills.
3. For small and medium businesses and large businesses specifically impacted by COVID-19, there will be a refunding of two months’ worth of payroll tax and a three-month payroll tax holiday plus a further six-month payroll tax deferral.
4. The Government has also announced a waiving of liquor licencing fees for venues that have had to close their doors, providing rent relief for businesses who rent premises from the state government and giving sole traders, small and medium businesses a $500 rebate on their power bill for this year.
5. $500 million loan facility, interest free for the first 12 months, to support businesses to keep Queenslanders in work. The $500 million concessional loan facility would comprise loans of up to $250,000 with an initial 12-month interest free period for businesses to retain staff.

SOUTH AUSTRALIA

1. $1 billion stimulus package to save South Australian jobs & businesses.
2. $650 million Jobs Rescue Package – which brings the state’s total economic response to $1 billion – also includes the establishment of two new funds (the $300 million Business and Jobs Support Fund and the $250 million Community and Jobs Support Fund).
3. Payroll tax relief (Up to $60 million of savings to business). A 6 month waiver for all businesses with an annual payroll (grouped) up to $4 million. Eligible businesses won’t have to pay any payroll tax from April to September. This measure is expected to assist up to 2,400 businesses and save them up to $84,000 over the six months (average saving $25,000).
4. Employers with grouped annual wages above $4 million able to defer payroll tax payments for 6 months on demonstration of significant impacts on cash flow of coronavirus.
5. Around 4,300 businesses will be able to access this payroll deferral and is expected to increase overall cash flow by around $580 million.
6. Land tax relief (up to $13 million in additional savings), from July, the Government’s significant land tax reforms will kick in, delivering $189m in savings to investors and landlords over the next three years. Under the new measures, individuals and businesses with outstanding quarterly bills for 2019-20 able to defer payments for 6 months (up to 28,000 private land tax ownerships will benefit).
7. For 2020-21 Land Tax Transition Fund relief will be increased from 50% to 100% based on existing relief criteria guidelines – saving some investors up to $50,000.
8. Fees and Charges – A waiver of liquor licence fees for 2020-21 for those hotels, restaurants, cafes and clubs forced to close as a result of new social distancing restrictions.
9. $300 million Business and Jobs Support Fund. Which will form a fund to support individual businesses and industry sectors directly affected by coronavirus, and face potential collapse – and the loss of thousands of jobs – as a result.

WESTERN AUSTRALIA

1. $607 million stimulus package to support WA households and small businesses in the wake of COVID-19.
2. $402 million to freeze household fees and charges until at least July 1, 2021.
3. Freeze will apply to entire ‘household basket’, including electricity, water, motor vehicle charges, emergency services levy and public transport fares.
4. Energy Assistance Payment (EAP) doubled to $600 to support vulnerable Western Australians, including pensioners.
5. $114 million in additional measures to support small businesses.
6. Small businesses that pay payroll tax will receive a one-off grant of $17,500.
7. $1 million payroll tax threshold brought forward by six months to July 1, 2020.
8. Businesses impacted by COVID-19 can defer payroll tax payments until July 21, 2020.

TASMANIA

1. $20 million for the provision of interest free loans to businesses in the hospitality, tourism, seafood and exports sectors. The loans will be available to small businesses with a turnover of less than $5 million for the purpose of purchasing equipment or restructuring business operations and will be interest free for a period of up to three years.
2. Waiving payroll tax for the last four months of this financial year for hospitality, tourism and seafood industry businesses.
3. Other small to medium businesses with an annual payroll of up to $5 million in Australian wages will be able to apply, based on the immediate impact of the virus on their businesses, to have their payroll tax payments waived for the three months from 31 March to June 2020.
4. Introduction of a youth employment payroll tax rebate scheme for young people from 1 April 2020.
5. $2.1 million for one-off $5,000 grants for businesses that hire an apprentice or trainee, complementing the Federal Government’s apprenticeship package.
6. One-off emergency relief payments of $250 for individuals and up to $1,000 for families who are required to self-isolate by public health as a result of coronavirus.
7. 50% discount on liquor licencing fees and waive all application fees for the calendar year 2020, back dated to 1 January 2020.
8. $100,000 in support to the Tourism Industry Council of Tasmania and the Tasmanian Hospitality Association for training and support of workers in the tourism and hospitality sectors over the winter months, to improve productivity and to be ready when tourism returns to normal busy levels across the state.

NORTHERN TERRITORY

1. $60 million stimulus package to protect Territorians from the deep economic impacts of the coronavirus pandemic.
2. The NT Government has expanded Home Improvement Scheme, where all Territory homeowners will receive $6,000 to undertake renovations and improvements to their property by a local business or tradie.
3. People will need to put in $2,000 to receive the additional $6,000 or alternatively they can put in $1,000 and receive $4,000.
4. The stimulus package will also give eligible businesses $10,000 for upgrades as a part of a new Business Improvement Scheme aimed at helping businesses attract more customers.
5. If a business also wants to contribute its own $10,000, the government will pitch in an additional $10,000 for a total of $30,000.
6. More announcements will be made shortly by the NT Government.

ACT

1. $137 million stimulus package.
2. $2,622 credit to commercial rates bill.
3. $750 rebate to small businesses through their next electricity bill.
4. Businesses with turnover of up to $10 million will be able to defer payroll tax for 12 months.
5. Affected industries will receive a one-off six month waiver on payroll tax.
6. Taxi and rideshare fees waived.
7. Food and liquor licence fees waived.
8. $20 million fund for simple infrastructure works on public buildings.
9. Funding for venues to retain casual staff.

 

The information has been extracted from a member alert by the Restaurant and Catering Australia, 27^th March 2020 and has reproduced with their kind permission.