Today, the Victorian Premier Daniel Andrews and Treasurer Tim Pallas announced the details of their $1.7b economic survival and jobs package – the State’s largest relief package ever delivered.

The package has been developed to support small and medium sized business (SMEs), with payroll tax refunds for the 2019-20 financial year to flow back to eligible businesses in the next week. This follows the announcement of the $437m health package delivered earlier this week. The Premier also confirmed that the 2020-21 Victorian Budget will be deferred – in line with all other Australian Governments and agreed by National Cabinet. The Government’s base review outcomes will also be deferred.

Support for businesses and jobs

  • SME’s with payroll of less than $3m will receive full payroll tax refunds for the 2019-20 financial year – representing approximately $550m, which are intended to start being paid next week.
  • SME’s with payroll of less than $3m can defer any payroll tax for the first three months of the 2020/21 financial year until 1 January 202 – representing approximately $83m.
  • Commercial tenants in government buildings can apply for rent relief.
  • 2020 land tax payments will be deferred for eligible small businesses.
  • The Government will pay all outstanding supplier invoices within five business days – releasing up to $750 million into the economy earlier.
  • Liquor licensing fees for 2020 will be waived for affected venues and small businesses.
  • $500m to establish a Business Support Fund. The fund will support the hardest-hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.
  • $500m to establish a Working for Victoria Fundin consultation with the Victorian Council of Social Services and Victorian Trades Hall Council. The fund will help workers who have lost their jobs find new opportunities, including work cleaning public infrastructure or delivering food.
  • The Government will facilitate job matching to help Victorians find short-term or casual roles.

What next?

We expect that there will be more details regarding how the $3m payroll tax threshold is calculated and the scope of taxpayers eligible for land tax relief and whether it includes Absentee Owner Surcharge. We know that many taxpayers have already received their land tax assessments. We appreciate cash flow is critical and so we are committed to updating our microsite regularly to allow taxpayers the most flexibility to decide not to make a payment now if they don’t need to.