COVID-19 State Government Initiatives

24/03/2020

For businesses whose total grouped Australian wages for the 2019/20 financial year is less than $10M:

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 will have no payment required for the months of March, April or May 2020 will be required. ie. the payroll tax is completely waived.

When lodging your annual reconciliation, you will still need to provide wage details paid in these months and will receive the benefit of a 25% reduction in the amount of tax you would have had to pay for 2019-20.
This will be automatically applied for the payroll tax returns covering above mentioned periods.

More information from Revenue NSW can be found here.

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 the 2020 financial year.
The State Revenue Office will directly contact eligible businesses in relation to reimbursement for payroll tax already paid in the financial year.

The QLD Government will offer $500m in loans to eligible businesses to retain employees and maintain operations. Details are:

Loans up to $250,000.
First 12 months interest free.
Currently taking expressions of interest before rolling the concessional loans out.
To apply, click here.

The payroll tax threshold will be increased to $1 million on 1 July 2020. This brings the increase forward from the planned date of 1 January 2021 and will result in approximately an additional 300 businesses no longer being liable for payroll tax. The threshold increase will be reflected in Revenue Online when it comes into effect.
Employers, or groups of employers, who pay $7.5 million or less in Australian taxable wages and have been directly or indirectly impacted by COVID-19 can apply to defer their monthly payroll tax payments until 21 July 2020.
A one-off grant of $17,500 will be available for employers, or groups of employers, whose annual Australian taxable wages are more than $1 million and up to $4 million. For a group of employers, a single grant will be payable to the designated group employer. You do not need to apply for the grant. Grants will automatically be paid by cheque from July but there will be delays for taxpayers whose tax status changed in 2018-19 or who became liable for payroll tax during the 2018-19 or 2019-20 assessment year. Eligible taxpayers should log in to Revenue Online to ensure their postal address is correct.

$20 million in interest-free loans available to small businesses in the hospitality, tourism, seafood production and export sectors.
Businesses with turnover of less than $5 million will be eligible, and the loans are intended to be used for purchasing of equipment, or for restructuring business operations.
Loans will be offered interest-free for three years. Details on how to apply have not yet been released.

Payroll tax waiver will be available to businesses in the hospitality, tourism and seafood industries, and will apply for the last four months of the 2019-20 financial year.
Other businesses with payrolls of up to $5 million will also be able to apply for a waiver, but eligibility will be based on how significantly the virus has affected business.
Further details on these criteria have not yet been released.

To be advised

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