This article covers the various concessions and grants initiated by the state governments and some banks in response to the outbreak of Covid-19.

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.
• 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.
• Land tax deferral: Landowners due to pay 2020 land tax that has 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.
• As part of a $1.7 billion economic survival package, the Victorian Government has announced $500 million to establish a Business Support Fund to assist small to medium businesses most impacted by the COVID-19 outbreak. For eligibility and application, click here.

For Eligibility & more information, please refer to State revenue office

New South Wales

• Payroll tax relief for businesses with grouped Australian wages of no more than $10 million: Annual tax liability reduced by 25% when businesses lodge their annual reconciliation, which is due by 28 July 2020. For those customers who lodge and pay monthly and whose total Australian wages will be no more than $10 million for the current financial year, no payment for the months of March, April or May 2020 will be required.

For Eligibility & more information, please refer to State revenue office

Queensland

• Payroll tax relief: Businesses may be eligible for one or more of a range of payroll tax relief measures as a result of the impacts of coronavirus (COVID-19). It includes refunds of payroll tax for 2 months, a payroll tax holiday for 3 months and deferral of paying payroll tax for the 2020 calendar year. The Payroll tax relief measures depend on Australian taxable wages.
• Small and medium business power bill relief: Small and medium businesses may be eligible for a $500 rebate off energy bills
• Queensland COVID-19 jobs support loans: The $500 million concessional loan facility will include low-interest loans of up to $250,000 for carrying on finance with an initial 12-month interest-free period for businesses to retain staff. Register your interest through the Queensland Rural and Industry Development Authority or phone 1800 623 946.
• Qld Government is also offering to provide rent relief, mentoring sessions etc.

For Eligibility & more information, please refer to State revenue office

Western Australia

• Grant Payment: A 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. Grants will automatically be paid by cheque from July but there will be delays for taxpayers whose tax status changed in 2018-19 or who became liable for payroll tax during the 2018-19 or 2019-20 assessment year.
• Payroll Tax threshold: The threshold will be increased to $1 million on 1 July 2020. This replaces the previously announced increase planned for 1 January 2021.
• Defer payment of returns: Small and medium businesses affected by the coronavirus (COVID-19) can apply to extend the time to pay their 2019-20 payroll tax until 21 July 2020. An application for deferral has to be lodged with the commissioner

For Eligibility & more information, please refer to State revenue office

Tasmania

• Payroll Tax measures: Employers in the Hospitality, Tourism, and Seafood industries will not be required to lodge payroll tax returns for March, April, May and June 2020. The Annual Adjustment Return (AAR) for 2019-20 is still required to be lodged by 21 July 2020.
• One-year rebate for employers who pay payroll tax and employ new youth employees aged 24 years and under. it commences on 1st April 2020
• Other businesses with payrolls of up to $5 million will also be able to apply for a waiver, but eligibility will be based on how significantly the virus has affected business.
• $20 million for the provision of interest-free loans to businesses in the hospitality, tourism, seafood and exports sectors. The loans will be available to small businesses with a turnover of less than $5 million for the purpose of purchasing equipment or restructuring business operations and will be interest-free for a period of up to three years.
• The Government will also provide $2.1 million 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.

Details for these measures will be released later. For more information on the package, please refer to State revenue office

Northern Territory

• $20 million Business Improvement Scheme: This is aimed at helping businesses get customers back into premises by undertaking improvements to a Territory business. All eligible businesses will receive $10,000. If the recipient also wants to put in their own $10,000, they will then get an additional $10,000 from the Government. This creates a $30,000 grant (with business pitching in $10,000 of their own money). The upgrades and purchases have to be from another Territory business. This could include buying new equipment, new shop fit-outs and physical changes to attract customers.
• $5 million Business Structural Adjustment package: This package will 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 consumers. The Chief Minister has directed public servants to personally speak with affected local businesses. 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: This 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. Up to $100,000 on a dollar-for-dollar matching basis for amounts above $50,000.
• $30 million Home Improvement Scheme

For more information on the package, please refer to State revenue office

Banks concessions

Commonwealth Bank

• Deferring Business loan: Automatically defer BetterBusiness Loan and Asset Finance Equipment Loan principal and interest repayments for eligible small business customers with total lending limits with CBA up to $3 million in April, May and June 2020.  From July, customers will be able to opt-in to receive a further three month deferral if needed in line with the ABA loan deferral arrangements.
• Interest rates and fees: Reducing our small business loans by 1% across all business loans. Waving merchant fees for impacted customer for 90 days. Waved establishment fees and excess interest on Temporary Excess products & Waiving early redraw fees on business term deposit accounts.
• Home loans: Home loan customers requesting financial assistance during this time will be able to defer their repayments, with interest capitalised, for up to six months.
• New Unsecured Loan facility: Offering an unsecured loan of up to $250,000* (lending criteria applies) with no establishment or account fees, and no repayments required for 3 – 6 months for businesses with less than $50 million annual turnover. For the first 6 months, interest will be deferred and capitalised at a reduced variable rate of 5.5%, reducing to 4.5% on the 3rd April 2020.

More info on Commonwealth bank concessions can be found here

Westpac Banking Corp

• Unsecured three-year term loan up to $250,000 for eligible new and existing customers with turnover of less than $50M, as part of the Federal Government’s latest economic support measures that guarantees 50 per cent of new loans issued by eligible lenders to small and medium size businesses. Effective Monday 23 March 2020, credit criteria applies.
• Interest rate reductions: 400 basis point reduction on unsecured lending term loan,200 basis point reduction on overdrafts & 100 basis point interest rate reduction for small business cash-based loans
• Repayment relief for small business customers: Westpac small business customers who need help to manage their cash flow can defer principal and interest repayments of business term loans for up to six months. Find out how to apply here.
• Merchant terminal rental fee waivers for up to three months.
• No establishment fees for equipment finance loans until the end of June 2020.
• Deferred payments for Business credit cards for a period of at least three months
• Fee free redraw
• Restructuring and consolidating loans
• Termination of a term deposit without the interest rate adjustment

More info on Westpac concessions can be found here.

We will update this for concessions by NAB and ANZ soon.

ThinkWiser is a boutique Accounting firm and Tax Agents based in South Morang, Victoria. We provide Accounting, Bookkeeping, Tax compliance services to small businesses and individuals throughout Australia through video-conferencing. We provide Mobile Accounting & Tax Services to the following suburbs: Mernda, Doreen, Yarrambat, Mill Park, Bundoora, Plenty, Craigieburn, South Morang & Melbourne. For any queries, please call us on 03 9005 6762 or email us at [email protected]