States & Territories have all enacted various economic stimulus responses to COVID-19. The responses are detailed below.
Australian Capital Territory
· Reduction in stamp duty on the following:
o new land single residential blocks to zero
o off-the-plan apartment and townhouse purchases up to $500,000 to zero
o off-the-plan apartment and townhouse purchases between $500,000 and $750,000 by $11,400.
· Payroll tax relief:
o 6-month waiver of payroll tax for businesses whose operations are directly affected by the 'prohibited activities list' now, and into the future. Has been extended to December 2020
o All ACT businesses with Group Australia-wide wages of up to $10 million can defer their 2020-21 payroll tax, interest free, until 1 July 2022
o Businesses in the construction sector will be able access interest-free payroll tax deferrals. This has been extended to December 2020
o Licenced venues will receive a 12-month waiver of their food business registration and on-licence liquor licencing fees from 1 April 2020 and outdoor dining fees for 2020-2021 will be waived.
· Rent relief:
o Deferring the issuing of notices for 2019-20 quarter four commercial rates instalments by 4 weeks to provide immediate cash flow assistance to commercial property owner
o Commercial landlords and owner operated businesses can continue to apply for rates rebates to December 2020 if their tenants or themselves are significantly affected
o Rental relief to commercial and community tenants of ACT Government owned properties that have been significantly impact by the virus
· Increasing subsidies for apprenticeships and traineeships and other VET students
· $750 electricity rebate for small business owners
· one-off payment of up to $5,000 to taxi drivers
· Support for households includes:
o Government will share the cost reduction of rental on a 50/50 basis, capped at $1,300 per quarter
o Delaying the issue of all general rates notices by 4 weeks, and push back payment dates by that time, to allow people eligible for Commonwealth assistance to start receiving it.
deferral of general household rates for 12 months will be available for any owner occupier in the Territory experiencing hardship
New South Wales
· changes to the stamp duty threshold on newly built homes and vacant land. This will eliminate stamp duty on newly built homes below $800,000 and vacant land below $400,000.
· introduction of a land tax discount for new build-to-rent housing projects until 2040. The discount will be equivalent to at least a 50% reduction in land tax, dependent on the unimproved land value.
· recovery grants of up to $3000 for eligible small businesses
· rental support measures which includes a $440 million land tax relief package for eligible landlords if they pass on the savings to their tenants
· Small businesses can receive up to $10,000 which will be available through Service NSW (after mid-April) and will remain open until 1 June 2020. To be eligible, a business will need to provide appropriate documentation to show:
o they have been highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020
o the business has between 1-19 employees
o turnover of the business is more than $75,000 and payroll of below $900,000 (NSW Government 2019-20 payroll tax threshold)
o the business is NSW based, employs staff and has an ABN as at 1 March 2020
o the business will use funding for business costs such as utilities, overheads, legal costs and financial advice.
· A $1 billion Working for NSW fund to sustain business, create new jobs and retrain employees.
· Further payroll tax relief:
o Deferral of payroll tax for business with payrolls over $10 million for up to 6 months
o Businesses with payrolls of $10 million or less will receive an additional 3-month deferral to the initial 3-month waiver in the first package.
· Deferral of gaming tax for clubs, pubs and hotels, and lotteries tax for 6 months, conditional on these funds being used to retain staff.
· Deferral of the parking space levy for 6 months
· Deferral of rents for 6 months for commercial tenants with less than 20 employees in all Government-owned properties.
Northern Territory
To save jobs the Northern Territory Government has announced on 29 July 2020 an additional $42 million in stimulus measures:
· $20 million for the Small Business Rebound and Adaption Grant – a new grant up to $10,000 when matched dollar-for-dollar to support small businesses to rebound and adapt. Grants open 1 September 2020
· $10 million Territory Tourism Voucher Scheme
· $10 million Immediate Work Grants Scheme – grants for incorporated not-for-profit and community organisations to undertake repairs, renovations and upgrades to their premises/facilities and will be issued to applicants who missed out the first time around. Grants open 1 September 2020.
· $2 million My Territory Local Business Voucher Scheme - a second round of local business-boosting voucher scheme to commence on 1 September.
The Government previously announced $180 million in additional support to businesses as part of the Jobs Rescue and Recovery Plan. The additional support involves:
· payroll tax relief – includes abolishing payroll tax for 6 months for smaller and medium-sized businesses, and defer it for 6 months for large businesses
· reducing power, water and sewerage bills by 50 per cent for businesses for 6 months (for regulated utility tariffs)
· Providing incentives for commercial landlords to reduce rents, and
· working with councils to reduce rates.
Support for businesses and jobs include:
· $20 million Business Improvement Scheme - aimed at helping businesses get customers back into premises by undertaking improvements to a Territory business. All eligible businesses will receive $10,000.
· $5 million Business Structural Adjustment package – to assist businesses who need to physically adjust to the 100 person rule or to establish or upgrade their online presence to adjust to changing behaviours of consumption. All businesses can apply, but the Department will be focusing on the hospitality sector first (such as restaurants). Terms and conditions and a hotline will be released soon.
· $5 million Immediate Works Grants Package - reintroduces the Immediate Works Grant for incorporated not-for-profit and community organisations – including clubs - to undertake repairs, renovations and upgrades to their premises/facilities. Applicants can apply for grants of up to $50,000, which will then be matched dollar-for-dollar if the organisation also puts in their own $50,000.
· Freezing Government Fees and Charges and Electricity Prices until 1 July 2021.
Queensland
The Queensland Government has announced an additional $249 million in COVID-19 related tax relief to small and medium businesses across Queensland. The measures are:
· a two-month waiver for of payroll tax for July and August 2020 for businesses with annual Australian taxable wages up to $6.5 million – eligible employers need to apply by 30 October 2020
· continuing to exempt JobKeeper subsidy payments from payroll tax – despite the Morrison government making these payments liable for income tax
· allowing businesses to pay off existing payroll tax deferred liabilities over the course of 2021, and
· for businesses renting State Government premises and incurring a demonstrable COVID impact, extending existing rent relief to the end of calendar 2020.
The protections would be underpinned by $400 million in land tax relief for property owners, which must be passed on to tenants. Land tax relief measures available include:
· a 3-month deferral of land tax liabilities for the 2020–21 assessment year
· a land tax rebate reducing land tax liabilities by 25% for eligible properties for the 2019–20 and 2020–21 assessment years
· a waiver of the 2% land tax foreign surcharge for foreign entities for the 2019-20 assessment year.
South Australia
The emergency $650 million Jobs Rescue Package, brings the total stimulus package for SA to $1 billion. Support for businesses, jobs and households include:
· Payroll tax relief for businesses:
o 6-month payroll tax waiver for businesses with Australian grouped wages up to $4 million i.e. no payroll tax payments for the months of April to September 2020. RevenueSA will notify these businesses through Revenue SA online
o 6-month payroll tax deferral (April to September 2020) for businesses with Australian grouped wages above $4 million on demonstration of significant COVID-19 impacts on cashflow. Apply online (the form will be developed)
· Land tax relief:
o individuals and businesses paying land tax quarterly in 2019-20 will be able to defer payment of their 3rd and 4th quarter instalments for up to 6 months. No application required – information will be provided with their land tax notices of assessment
o For 2020-21, the new Land Tax Transition Fund relief will be increased from 50% to 100% based on existing relief criteria guidelines
· Waiver of liquor licence fees for 2020-21 for those hotels, restaurants, cafes and clubs forced to close because of the social distancing restrictions
· The criteria for Job Accelerator Grants will be relaxed
· Establishment of the $300 million Business and Jobs Support Fund and the $250 million Community and Jobs Support Fund
· Cost of Living concessions:
o A once-off boost of $500 and bring forward the 2020-21 'Cost of Living Concession' for households who are receiving the Centrelink JobSeeker Payment
o For eligible homeowners, their 2020-21 payment of $215.10 will now become $715.10. Eligible tenants will receive $607.60
Access to accrued leave for the public sector workforce.
Tasmania
Small business support includes:
· Increase the Small Business Interest Free Loan Scheme announced in the first package from $20 million to $50 million which is now available for businesses with turnovers less than $10 million.
· Provide a new $40 million Small Business Grants Program with $20 million set aside for an emergency grants program of $2500 cash payments.
· Provide a Digital Ready for Business Program, to assist businesses take their business online.
· Provide Business Continuity Advice with $750,000 in funding made available for businesses to seek cashflow and continuity advice. A one-off grant of up to $750
· A youth employment payroll tax rebate scheme will be introduced for young people from 1 April 2020.
· $2.1 million will be provided for one-off $5,000 grants for businesses that hire an apprentice or trainee, complementing the Federal Government's apprenticeship package.
· One-off emergency relief payments of $250 for individuals and up to $1000 for families who are required to self-isolate by public health as a result of coronavirus.
Victoria
Support for business and jobs in the $1.7 billion economic survival and jobs package include:
· Full payroll tax refunds for the 2019-20 financial year will be provided to small and medium-sized businesses with payroll of less than $3 million. Eligible businesses must continue to lodge returns but do not need to may further payments. Refund payments will start next week
· The above businesses will also be able to defer any payroll tax for the first 3 months of the 2020/21 financial year until 1 January 2021.
· 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.
· Commercial tenants in government buildings can apply for rent relief. The government is encouraging private landlords to do the same.
· Liquor licensing fees for 2020 will be waived for affected venues and small businesses
· $500 million will be provided to establish a Business Support Fund to support the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.
· A $500 million Working for Victoria Fund will be established to help workers who have lost their jobs find new opportunities including work cleaning public infrastructure or delivering food.
Western Australia
· Households:
o Eligibility for Energy Assistance Payment boost will be expanded to include new eligible applicants until 30 September 2020.
o No households experiencing financial hardship as a result of COVID-19 will have their power or water disconnected and no interest will be charged on deferred bill payments.
o Households can apply for an interest-free payment arrangement or for late payment penalties to be waived for transfer duty, landholder duty, vehicle licence duty or land tax.
o Keystart customers facing financial hardship due to COVID-19 can apply to defer principal repayments and waive interest costs by up to 6 months.
· Business:
o payroll tax threshold will be increased to $1 million on 1 July 2020, bringing the increase forward from the planned date of 1 January 2021.
o Businesses can apply for an interest-free payment arrangement and for late payment penalties to be waived for payroll tax, transfer duty, landholder duty, vehicle licence duty or land tax.
o 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