The Victorian Government released details of a $1.7 billion support package for local businesses that was prepared in coordination with the Treasury over the weekend. The Government also indicated that the Victorian 2020-21 budget will be differed in line with the Federal Government budget due to the uncertainty caused by the virus pandemic.
The package consists of the following relief measures:
Payroll Tax Refunds
As part of the package the Government intends to refund in full payroll tax paid by eligible small and medium sized businesses during the 2019-20 financial year to date and waive further payments due for the remainder of the financial year. This measure is only eligible for businesses with payroll of less than $3 million. They expect refunds to commence being paid over the coming week to eligible businesses. These businesses will also be allowed to defer payments of payroll tax for the September quarter of the 2021 financial year until 1 January 2021.
This measure it expected to provide cashflow relief of up to $113,975 to businesses based on their taxable wages assessable for payroll tax.
Establishment Of A Business Support Fund
The Victorian Government has moved to establish a $500 million Business Support fund to support the sectors hardest hit by COVID 19 which include hospitality, tourism, accommodation, arts and entertainment and retail. It is intended that this fund will operate to provide relief to those businesses not eligible for the payroll tax refund due to their size to continue operating and keep people in work.
Establishment Of A Working For Victoria Fund
The Government has also prioritized providing for workers who have lost jobs due to the crisis and has established a $500 million fund to help find new jobs and opportunities including work cleaning public infrastructure or delivering food. The Government will also be facilitating job matching to help Victorians find short term or casual roles.
The Victorian Government has also indicated that they intend to announce further support measures over the coming weeks and months as the crisis continues to evolve.
We agree with the Government stance that cash is better in the hands of struggling businesses than in government bank accounts. However, we also believe the measures outlines above don’t address all concerns of businesses. If your small business is struggling financially and are looking at strategies to survive through the current crisis please contact our office on 03 9798 6622. Our staff are eager to help all businesses affected and are backed by the Partners who each possess a wealth of knowledge and experience helping grow small businesses and engineering business turnarounds when times are tough.