What COVID-19 tax relief measures are you eligible for?

The coronavirus (COVID-19) pandemic and subsequent lockdown has left many businesses facing dips in cash flow and revenue.

The good news is that states and territories around Australia have implemented tax relief measures to ease the burden for businesses impacted in recent months.

So, what measures could you be eligible for? Here’s a state-by-state breakdown of the various tax relief measures around the country.*

New South Wales.

The NSW Government has introduced various tax relief measures for NSW businesses as part of its broader COVID-19 economic stimulus package:

Payroll tax deferral: All NSW businesses that are registered for payroll tax have the option to defer payroll tax payments until October 2020. This includes any outstanding payments for the 2019-20 financial year and monthly payments for July, August and September. After October 2020, businesses will have the option to either pay in full or through an installment plan.

25% discount on payroll tax: Businesses registered for payroll tax with total wages for the 2019-20 financial year less than $10 million will have their annual tax bill reduced by 25% when they lodge their annual reconciliation.

Deferral of the parking space levy: Businesses that pay a parking space levy (PSL) can defer payments from the end of March for six months until 30 September 2020.

Extended payment time-frames and part payments: NSW businesses impacted by COVID-19 can apply for extended payment time-frames or part-payment plans for fines and fees.

25% discount on land tax: Commercial landowners may be eligible to have their tax bill reduced by 25% in cases where rent relief has been given to the tenant who occupies that land.

RELATED: 6 tips to maximise your small business tax return.

Victoria.

Tax relief support is available in a number of areas for Victorian businesses impacted by COVID-19:

Payroll tax waived: Businesses with annual taxable wages up to $3 million will have their payroll tax waived for the 2019-20 financial year. Eligible businesses will also be able to defer any payroll tax for the first three months of the 2020-21 financial year.

Liquor license fees waived: Outstanding 2020 renewable liquor license fees will be waived, and reimbursement is available for businesses that have already paid fees this year.

Land tax deferral: Commercial land owners due to pay 2020 land tax with total taxable landholdings less than $1 million have the option of deferring their 2020 land tax payment until after 31 December 2020.

25% discount on land tax: Commercial landowners may be eligible to have their tax bill reduced by 25% in cases where rent relief has been given to the tenant who occupies that land.

Queensland.

Tax relief is available for QLD businesses that have been directly or indirectly affected by COVID-19:

Payroll tax relief: All small and medium businesses (with payroll up to $6.5 million) directly or indirectly affected by COVID-19 will be eligible for:

  • Two-month refund of payroll tax
  • Three-month payroll tax holiday
  • Deferment of all payroll tax payments for the rest of 2020.

Liquor license fees waived: Liquor license fees will be waived and refunds are available to businesses that have already paid fees, backdated to 1 February 2020.

Land tax relief: Commercial landowners may be eligible for a 25% discount on land tax in cases where rent relief has been given to the tenant who occupies that land. A three-month deferral on land tax is also available.

Western Australia.

The WA government is providing a number of tax relief measures to eligible businesses that have been impacted by COVID-19:

Waived payroll tax: Businesses that pay $7.5 million or less in Australian taxable wages and have been impacted by COVID-19 will have payroll tax waived for a four-month period between 1 March 2020 to 30 June 2020.

Interest-free payment plans: Businesses can apply for an interest-free payment plan and for late payment penalties to be waived for payroll tax, transfer duty, landholder duty, vehicle licence duty and land tax.

Land tax relief: Commercial landowners may be eligible for a 25% discount on land tax in cases where rent relief has been given to the tenant who occupies that land. To be eligible, landowners must provide rent relief for a minimum of three months and freeze outgoings to small businesses that have suffered at least a 30% reduction in turnover due to COVID-19.

Waived penalty tax: Penalty tax for late payments will be waived in full for businesses that can demonstrate their financial circumstances have been directly or indirectly impacted by COVID-19.

RELATED: Working from home tax deductions simplified.

South Australia.

Tax relief support is available for SA businesses impacted by COVID-19:

Waived payroll tax: SA businesses with Australian wages of up to $4 million will receive a six-month payroll tax waiver. Eligible employers will not be required to pay any payroll tax for the months of April to September 2020.

Land tax relief: Businesses paying land tax quarterly in 2019-20 will be able to defer payment of land tax for up to six months. Information about this will be provided with the land tax notices of assessment.

Waived liquor license fees: Liquor license fees will be waived for 2020-21 for  hotels, restaurants, cafes and clubs forced to close because of COVID-19 restrictions.

Tasmania.

The Tasmanian Government has introduced various tax relief measures for businesses:

Waived payroll tax: TAS businesses with Australian wages up to $5 million who can demonstrate that their operations have been affected by COVID-19 will not be required to pay any payroll tax for the entire financial year of 2019-20.

Waived payroll tax for JobKeeper wages: Wages paid by employers that are subsidised by the government’s JobKeeper scheme will be exempt from payroll tax.

Payroll tax rebate: A 12-month payroll tax rebate will be available to eligible businesses with new youth employees (aged 24 years and under).

Waived land tax: Land tax will be waived for commercial property business owners for the 2020-21 financial year. The business owner must be liable for the land tax and be able to demonstrate that their business operations have been affected by COVID-19.

Northern Territory.

As part of the Northern Territory Government’s Business Hardship Package, payroll tax relief is available for eligible businesses that can demonstrate hardship due to the COVID-19 pandemic.

Payroll tax waivers are available for the March to August 2020 return periods for businesses with:

Payroll tax deferrals are available until 21 September 2020 for NT businesses with:

  • A confirmed listing on the DTBI Business Hardship Register
  • Estimated total Australian taxable wages for 2019-20 of over $7.5 million
  • A reduction in turnover of at least 50% when compared to the corresponding month or quarter in 2019.

For more information on tax relief and other business support measures, see the Australian Government’s coronavirus support hub for businesses.

*We endeavour to provide accurate material for Australian businesses consistent with Australian tax laws; however, this material is for reference only and is not designed to be, nor should it be regarded as professional advice.

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