To help businesses in this very challenging time, the NSW and QLD Governments have announced measures that will work hand in hand with the Federal Government’s stimulus package announced last week.
As per the Federal Government’s announcement, we believe these measures will help create jobs as well as help business keep their workforces intact throughout the turbulent times ahead.
New South Wales
In response to the to the likely economic impact of COVID-19, the NSW Government has today announced a $2.3 billion health and economic stimulus package to protect the community as well as create and protect jobs.
The main points for business and jobs are below:
Business support - Payroll Tax and other State fees and charges
- Full payroll tax waiver for the April – June Quarter (3 months) for businesses with payrolls of up to $10m.
- New payroll tax threshold of $1m applied early from 1 July 2020 (previously scheduled to start on 1 July 2021).
- Waiver of various fees & charges to small business in impacted industries, mostly bars, cafés, restaurants and tradespeople.
Businesses that are involved in providing cleaning, maintenance and other services to the NSW Government may be able to benefit for the following new spending initiatives announced:
- Employment of additional cleaners of public infrastructure ($250m);
- Bringing forward maintenance on public assets ($250m); and
- Bringing forward capital works and maintenance projects ($500m).
We are waiting to hear more details about these. Please click here to read media release from NSW Government.
The QLD Government has also announced a suite of initiatives to support business who are impacted by COVID-19 with an immediate industry recovery package worth $27.25m. Today, they have also added a $500m interest free loan facility to keep businesses afloat and prevent redundancies.
The main points of interest are:
- All businesses can now defer the lodgement and payment of their Queensland Payroll Tax monthly/quarterly/annual returns (starting with the February 2020 monthly return) until 3 August 2020. Returns can still be lodged, but payment will not be required until 3 August 2020.
- This was previously restricted to smaller businesses.
Interest-free loans to business
- $500m loan facility to provide loans of up to $250,000 interest-free loans for the first 12 months to support Queensland businesses retaining staff.
- Information on these loans will become available from the end of this week
Market Diversification and Resilience Grants
- Support for agriculture, food and fisheries industries.
- Equipment purchases grants of up to $7,500 for new equipment up to a maximum cost of $10,000. Includes items such as freezers, refrigerators, vacuum packaging machines, storage equipment, etc. Applications being accepted from 12 March.
- Project grants of up to $50,000 to support market evaluation studies, market visits, staff training, new equipment, etc. Applicants must co-invest at least 50% of total project costs. Applications being accepted between 12 March – 20 April.
To read more about the QLD Governments package click here.
If you have any questions regarding the above, please contact our Tax Director Raffi Tenenbaum or your Prosperity adviser.