Victoria releases COVID-19 economic survival and jobs package

Business AdvisoryCash FlowPayrollSMETax

22 March 2020

On 21 March 2020, the Victorian Government released a $1.7 billion economicsurvival and jobs package[1] to help Victorian businesses and workers cope with the devastating impacts of the COVID-19 epidemic.

Below is a brief overview of the benefits provided by the Victorian government:

1. Payroll tax refunds

To assist businesses with cash flow, the Victorian Government will provide full payroll tax refunds for the 2019-20 financial year to businesses with payroll of less than $3 million. They will also allow such businesses to defer any payroll tax for the first three months of the 2020-21 financial year until 1 January 2021.

It is expected the refunds, which should be available within a week, will help save eligible businesses up to $113,975 for the 2019-20 financial year, with eligible businesses saving an average of $23,000.

2. Rent relief on government buildings and deferral of land tax payments

Commercial tenants in government buildings can apply for rent relief and 2020 land tax payments will be deferred for eligible small businesses. Private landlords are also encouraged to provide rent relief.

3. Victorian Government to pay their suppliers sooner

To increase cash flow, the Victorian Government will also pay all outstanding supplier invoices within five business days. The private sector is also encouraged to do the same to release money into the economy sooner.

4. Support for specific sectors of the economy struggling because of COVID-19

The Victorian Government will establish a Business Support Fund to support these sectors:

  • Hospitality

  • Tourism

  • Accommodation

  • Arts and entertainment

  • Retail

They will also waive liquor licencing fees for 2020.

5. Support for Victorians who have lost their jobs

The Victorian Government will establish a Working for Victoria Fund to help workers who have lost their jobs to find new opportunities.

If you require more information or would like some support accessing any of the support measures announced, please contact the Findex Tax Advisory Team.

Findex has developed a Government Stimulus Health Check and free Business Wellbeing Toolkit to help businesses manage potential risks and take full advantage of eligible stimulus assistance. Book your Health Check here.

[1] Victorian Premier, Economic survival package to support businesses and jobs, 21 March 2020.

Author: Roelof van der Merwe

Roelof is the National Tax Director of Findex and has more than 15 years' experience in Australia delivering practical tax and consulting services. Roelof joined Findex after gaining experience in Big 4 and mid-tier firms. Roelof helps to ensure that Findex stays up-to-date with the latest developments by interpreting technical tax information in a practical and relevant manner. He has experience on a wide variety of complex tax related topics and has the ability to identify, understand and clearly communicate how the tax law may impact business transactions and taxpayers.