COVID – 19 Second-Round & Updated Stimulus Package Breakdown

On March 22, the Australian government announced a second-round stimulus package in response to the current economic downturn due to COVID-19. This is a summary of Australia’s and Victoria’s updated support packages and clear links for you to read further.

 

Victoria

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.

The State Revenue Office will administer the reimbursement, regardless of whether the licence fee was paid to it or the Victorian Commission for Gaming and Liquor Regulation.

Land tax deferral
Land owners due to pay 2020 land tax that have 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.

To read further please click here.

 

Australia

There has been a deterioration in the outlook of the current economic state of Australia since the governments previous response on March 12, 2020. As such, there has been a secondary economic response put in place which in many ways is an update of the first. Combined with previous actions total $189 billion across the forward estimates, representing 9.7 percent of annual GDP.

This secondary response targets three areas;

  • Support Individuals and Households
  • Support for Businesses
  • Supporting the Flow of Credit

Supporting Individuals and Households
For those eligible there will be further income support payments, further payment support to houses and early releases of superannuation temporarily.

Please read the fact sheet for this area here

Supporting for Businesses
The Governments actions in place are to support businesses cash flow and provide temporary measures to relieve businesses which are financially distressed.

Please read the fact sheet for this area here

Supporting the Flow of Credit
The Australian Government, in coordination with the Reserve Bank of Australia and the Australian Prudential Regulation Authority have taken action to support the flow of credit in the Australian economy.

Please read the fact sheet for this area here

We understand this is a challenging time for all our clients, please be assured we will continue to run business as usual and be here to support you in absolutely anyway we can.

For regular updates and valuable readings, please continue to check our website.

Thank you,
KSR Partners