Uploaded: 8 April 2020
The McGowan Government have announced a package to assist businesses and households, including:
- bring forward of payroll tax relief to 1 July 2020;
- one-off $17,500 grant to businesses with payroll between $1 million and $4 million from July 2020;
- waiver of payroll tax from 1 March to 30 June 2020 for small to medium-sized businesses;
- freezing of household fees and charges;
- early assistance package to support the tourism sector (marketing, and more affordable regional flights);
- one-off $2,500 credit against electricity invoices for small to medium businesses (< 50 megawatt hours annually);
- interest free and penalty free deferrals of some payments;
- licence fee waivers for some businesses for 4 months; and
- small businesses and households impacted by COVID-19 will not be disconnected from water and electricity.
The stimulus package is primarily related to payroll tax relief to small businesses with taxable wages of $1 million to $4 million.
There is also a waiver of payroll tax for 4 months if the annual taxable wages are less than $7.5 million.
Also, provide cash flow relief to small businesses and households who have been impacted by COVID-19.
Small businesses with taxable wages between $1 million and $4 million will receive a one off grant of $17,500 paid in July 2020.
The previously announced increase to the payroll tax threshold from $950,000 to $1 million will be brought forward from 1 January 2021, and will now apply from 1 July 2020.
For businesses with taxable wages under $7.5 million, a 4-month waiver of payroll tax to businesses. This measure replaces the previously announced deferral of payments.
The Government is moving quickly and things are changing daily with regards to the response to COVID-19.
Should you have any queries regarding this measure or any Government measure announced in relation to COVID-19, please contact our office for more information.
If you would like to print this information, please click here for our PDF format.
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.