As part of a broader economic survival package in response to COVID-19, the Victorian Government has announced tax measures to support businesses through Victoria’s State of Emergency.
Payroll tax waived
Businesses with annual taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived.
Eligible businesses must continue to lodge returns but do not need to make further payments for this financial year.
The State Revenue Office will directly contact eligible businesses in relation to reimbursement for payroll tax already paid in the financial year.
These businesses can also defer paying payroll tax for the first quarter of the 2020-21 financial year.
More information about the administration of these relief measures will be sent directly to eligible businesses.
Liquor licence fees waived
Businesses that have paid for a renewable liquor licence for 2020 will be reimbursed their licence fee and those yet to pay will have the fee waived.
Reimbursement will be administered by the State Revenue Office, regardless of whether the licence fee was paid to it or the Victorian Commission for Gaming and Liquor Regulation.
Land tax deferral
Landowners due to pay 2020 land tax that has at least one non-residential property and total taxable landholdings below $1 million have the option of deferring their 2020 land tax payment until after 31 December 2020.
The State Revenue Office will contact all taxpayers who are eligible for this deferral.
Businesses across the state can now access information on dealing with COVID-19 by calling the Business Victoria hotline on 13 22 15.
Land Tax Relief for landlords – 15/4/20
In response to Covid-19 the Victorian Government has announced land tax relief for landlords as part of its Economic Survival Package.
Landlords who provide tenants impacted by COVID-19 with rent relief may be eligible for a 25% reduction on the property’s 2020 land tax.
This relief is also available to landowners who are unable to secure a tenant because of COVID-19.
Landlords can also defer the remainder of their 2020 land tax to 31 March 2021.
This relief is available for residential and commercial properties, however, for commercial landlords to be eligible, the property must be rented to a tenant with an annual turnover of up to $50 million, and the tenant must be eligible for the Commonwealth Government’s JobKeeper Payment.
Full details are available at: https://www.sro.vic.gov.au/coronavirus
Australian Government measures
The Australian Government has also announced an economic response to COVID-19, including initiatives to assist individuals and households, businesses, and to support the flow of credit.
As this situation continues to unfold we anticipate there will be further announcements over the coming weeks that will impact businesses in Victoria. We will keep you up to date with information as it becomes available.
In the meantime, if you have any queries or concerns, please don’t hesitate to contact us.