Tasmanian Premier Peter Gutwein has now announced a $420 million support package that will include the waiving of payroll tax for the last four months of this financial year for hospitality, tourism and seafood industry businesses.
Small to medium businesses with an annual payroll of up to $5 million that are not part of the three specified industries will still be able to apply to have their payroll tax payments waived for the three months to June 2020.
A youth employment payroll tax rebate scheme will also be rolled out from 1 April, in a bid to encourage businesses to employ younger employees.
Similarly, a one-off $5,000 grant will also be made available to businesses that hire an apprentice or trainee.
The Tasmanian government will also mandate that government agencies reduce payment terms from 30 days to 14 days to assist with the cash flow for small businesses.
Hospitality, tourism, seafood and export businesses with a turnover of less than $5 million will also be set to benefit from interest-free loans up to three years for the purpose of purchasing equipment or restructuring business operations.
“We know this pandemic will also have very real and significant economic consequences, and our government will do everything it can to manage and mitigate those impacts on businesses, jobs, families and the Tasmanian community,” Mr Gutwein said.
The Apple Isle’s measures follow in the footsteps of the state governments of New South Wales, Queensland and Western Australia in providing economic support as the country grapples with the coronavirus threat.
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Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.