Victoria Premier Daniel Andrews announced on Saturday that businesses with a payroll of less than $3 million will receive full payroll tax refunds for the 2019–20 financial year.
These businesses will also not have to pay any payroll tax for the rest of the financial year and will be allowed to defer any payroll tax for the first three months of the 2020–21 financial year.
The refund is estimated to see eligible Victorian businesses receive an average of $23,000, and up to $113,975 for some.
“We’ve listened to business and workers and now we’re taking unique and unprecedented action to help businesses and their workers through this crisis,” Mr Andrews said.
“This is not a tax cut. It is a refund back in the accounts of businesses in just a few days’ time; cash that will be critical to them being able to support their workers and in turn those workers being able to support their families.
“Cash is better in the hands of struggling businesses than in a government bank account right now — Victorian workers need us to step up to help get them through.”
The measure will support 24,000 businesses.
As part of the package, the state government will also provide $500 million to establish a Business Support Fund, aimed at supporting the hardest-hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.
The Victorian government will also pay all outstanding supplier invoices within five business days, a move estimated to see $750 million injected into the economy earlier.
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.