Stimulus Overview - VIC & TAS

Here you’ll find an overview of the stimulus packages recently implemented for the VIC & TAS at at 14/08. This will be updated regularly but we’d also recommend seeking advice from your tax advisors on the opportunities available.

VIC Stimulus Overview

New rules for Victorian workplaces under stage 4 restrictions

Under Stage 4 ‘Stay at Home’ Restrictions, Victoria’s Chief Health Officer has defined that workplaces in metropolitan Melbourne are closed unless the workplace is part of a permitted industry. More info on how all business sectors are affected can be found here.

A table that describes the “Permitted Work Premises” for each sector, which outlines how businesses may operate with on-site operations during the restricted activity period can be found here.

New rules affecting whether Victorian businesses can trade onsite

From midnight Wednesday August 5, Victorian businesses will be divided into three categories, with many retail stores and others set to close for six weeks while the state attempts to minimise COVID-19 cases. Premier Dan Andrews said stores exempt from closing include supermarkets, petrol stations and pharmacies. To find out which category your business is in, and whether on-site trading will be possible for the next six weeks, this My Business article has extra information and a link to a handy table with full details.

Land tax relief to help Vic SMEs negotiate with landlords

SMEs can be granted rental waivers or deferrals under new legislation announced in Victoria, with land tax relief for landlords who provide relief to commercial tenants. The aim is to provide relief for both commercial tenants and their landlords, to help them negotiate rent changes due to COVID-19 hardship. As well as a six-month freeze on commercial tenancy evictions, the legislation will create a mediation service to support fair tenancy negotiations. Details on the Commercial Tenancies Relief Scheme here.

Payroll tax:

Full payroll tax refunds estimated to be worth $550 million for the 2019-20 financial year to small and medium-sized businesses with payroll of less than $3 million. Payments will save eligible business up to $113,975 a year, with businesses saving an average of $23,000. The same businesses will also be able to defer any payroll tax for the first three months of the 2020/21 financial year until 1 January 2021, freeing up a further $83 million in cash flow. 

Stamp Duty:

Package includes:

  • Commercial tenants in government buildings can apply for rent relief
  • 2020 land tax payments will be deferred for eligible small businesses
  • waiving liquor licensing fees for 2020 for affected venues and small businesses
  • $500 million to establish a Business Support Fund. The fund will support the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.

The Government will work with the Victorian Chamber, Australian Hotels Association and Ai Group to administer the fund.

Individual income support:

A $500 million Working for Victoria Fund will help workers who have lost their jobs find new opportunities. The Government will also facilitate job matching to help Victorians find short-term or casual roles.

TAS Stimulus Overview

Halt on commercial tenant evictions and rent increases:

The Tasmanian Government on April 14 updated its rules for commercial tenancies.
A landlord cannot terminate a commercial lease for unpaid rent, or increase the rent, for any Tasmanian business that qualifies for the JobKeeper program. More information.

Payroll tax:

Payroll tax waiver for the last four months of this financial year for hospitality, tourism and seafood industry businesses at estimated cost of $7 million. Other SMEs with an annual payroll of up to $5 million in Australian wages will be able to apply to have their payroll tax payments waived for the three months from 31 March to June 2020.

A payroll tax rebate scheme for young people will be implemented from 1 April 2020 to encourage youth employment.

Stamp duty:

Package includes:

  • $2.1 million for one-off $5,000 grants for businesses that hire an apprentice or trainee in the tourism, hospitality, building and construction, and manufacturing industries.
  • $1 million funding for organisations such as the Salvation Army, The Red Cross and Rural Business Tasmania.
  • 50% discount on liquor licencing fees and waive all application fees for the calendar year 2020, back dated to 1 January 2020.
  • $100,000 to the Tourism Industry Council of Tasmania and the Tasmanian Hospitality Association for training and support of workers in the tourism and hospitality sectors over the winter months.
  • $80,000 funding for Tasmanian Chamber of Commerce and Industry to advise to businesses on the implications of these workplace issues.
  • For the fourth quarter of 2019-20, the Government will waive tourism operator lease, license and entry fees to support around 300 tourism businesses.
  • $670,000 to waive fees for rock lobster, giant crab and fin fisheries, and for abalone divers, in addition to providing annual fees and levies to be paid by instalment.
Individual income support:

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.

Find out more about the federal stimulus overview and other key advice below.

Federal Stimulus Overview
ACT & NSW Overview
QLD & NT Overview
WA & SA Overview
Guidance, Resources & FAQs