NSW QLD WA release coronavirus/COVID-19 payroll tax relief packages
New South Wales
The NSW Government has announced the waiver of payroll tax for businesses with payrolls of up to $10m, for the months from April to June 2020.
Also, the payroll tax threshold will be raised to $1m in 2020/21, thereby bringing forward another round of payroll tax cuts for eligible businesses.
As part of its support package, additional measures include waiving of fees and charges for small businesses, employment of additional cleaners of public infrastructure, and bringing forward maintenance of public assets and capital works.
The QLD Government will offer $500m in loans, and extend payroll tax deferral to all affected businesses.
The $500m concessional loan facility will comprise of loans up to $250,000 with an initial 12-month interest-free period.
Judging from the popularity of its initial payroll tax deferral available to small and medium businesses, the QLD Government will extend the offer of a six-month payroll tax deferral to all affected QLD businesses.
The WA Government has released a business and household economic response package to provide relief from the impact of COVID-19, including relief around payroll tax.
Businesses paying payroll tax, with a payroll between $1m and $4m will receive a one-off grant of $17,500.
In addition, the increase of the payroll tax threshold to $1m will be fast-tracked to 1 July 2020, six months before the originally planned date. This means smaller businesses will potentially be able to fall out of the payroll tax regime sooner than before.
Small and medium-sized businesses, who pay $7.5m or less in Australian taxable wages and have been affected by COVID-19, can apply for a deferral of their 2019/20 payroll tax payment until 21 July 2020.
Tasmania Government has announced a $420m support package to support the public sector, businesses and the workforce. This package includes a payroll tax relief component.
Payroll tax for the last four months of income year 2019/20 will be waived for businesses in the hospitality, tourism, seafood and exports sectors. Affected businesses in other sectors with an annual payroll not exceeding $5m in Australian wages, can apply for a waiver of payroll tax for the three months of April, May and June 2020.
A youth employment payroll tax rebate scheme will also be introduced from 1 April 2020 to encourage youth employment. One-off grants of $5,000 for businesses that hire an apprentice or trainee will likewise be introduced.
The State Government will also introduce the following measures to support businesses:
• interest-free loans to targeted business for equipment purchase, business restructuring or asset maintenance
• reduction of terms of trade for government agencies from 30 days to 14 days
• provide a 50% discount in liquor licensing fees and waiver of application fees for the entire 2020 calendar year
• assistance to the Tasmanian Chamber of Commerce to provide advice to businesses
• waiver of tourism operator fees for the fourth quarter of 2019/20, and
• 12-month waiver of annual fees and levies for selected fisheries and divers.