Key Australian State tax developments and other measures in response to COVID-19 - Further update
This update outlines the key Australian payroll and land tax developments and other measures announced or introduced by State governments in response to COVID-19 as at the date of publication.
This bulletin was originally published on 18 May 2020, was updated on 17 July 2020, 22 September 2020 and 30 November 2020.
New South Wales
payroll tax measures1 | land tax measures2 | other measures3 |
---|---|---|
25% payroll tax reduction: businesses with total grouped Australian wages of $10 million or less for the 2019/20 financial year had their annual tax liability reduced by 25% when they lodged their annual reconciliation (due on 30 October 20204). Reduced payroll tax rate: the payroll tax rate for 2020/21 and 2021/22 is temporarily reduced from 5.45% to 4.85%. |
Land tax reduction: commercial and residential landlords may receive a reduction of up to 50% of the land tax payable in the 2020 land tax year if:
Financial distress is considered to be a 30% drop in revenue for commercial tenants or a 25% drop in household income for residential tenants, and the drop is due to COVID-19. The 50% reduction for the 2020 land tax year is divided into reductions of up to 25% of the total annual land tax for two periods (1 April to 30 September 2020, and 1 October to 31 December 2020). |
Deferral of other taxes: Revenue NSW had also deferred the collection of the gaming machine tax and parking space levy through making available payment arrangements. Small Business Recovery Grant:7 small businesses or not-for-profit organisations who meet various requirements including having an annual turnover of more than $75,000, that have experienced a decline in turnover and are highly impacted from the COVID-19 government closure orders may be eligible for a small business recovery grant of between $500 and $3,000.
Owner-occupiers must meet one of the following two income caps:
The building contract must be signed between 4 June 2020 and 31 December 2020, and construction must commence on or after 4 June 2020 and within three months of the contract date. The Scheme is a Commonwealth Government programme administered by each State and Territory. Other measures include:
First home buyer assistance scheme: the thresholds for the first home buyers assistance scheme have been increased for contracts executed from 1 August 2020 to 31 July 2021 for new homes and vacant land on which a new home is intended to be built. There is no change to the thresholds for purchasing existing homes. |
2https://www.revenue.nsw.gov.au/news-media-releases/covid-19-tax-relief-measures/covid-19-coronavirus-and-land-tax
3https://www.revenue.nsw.gov.au/news-media-releases/covid-19-tax-relief-measures; https://www.nsw.gov.au/news/health-boost-and-economic-stimulus; https://www.revenue.nsw.gov.au/news-media-releases/stamp-duty-changes-for-first-home-buyers
4https://www.revenue.nsw.gov.au/news-media-releases/2020-payroll-tax-annual-reconciliation-availability
5https://www.revenue.nsw.gov.au/news-media-releases/covid-19-tax-relief-measures/covid-19-coronavirus-and-payroll-tax
6https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/payroll-tax
7https://www.service.nsw.gov.au/transaction/apply-small-business-covid-19-recovery-grant
8https://treasury.gov.au/coronavirus/homebuilder
Victoria
payroll tax measures9 | land tax measures10 | other measures11 |
---|---|---|
Payroll tax waiver: the payroll tax for the 2019/20 financial year was waived for businesses with annual Victorian taxable wages up to $3 million. Payroll tax deferral: businesses with payrolls up to $10m (based on 2019/20 financial year returns) are able to defer their 2020/21 payroll tax liability until the 2021/22 financial year. For example, liabilities for July, August and September 2020 will not be due until 7 September 2021. This does not affect the requirement for businesses to lodge their annual reconciliation return and monthly returns. JobKeeper payments: wages that are subsidised by the Federal Government's JobKeeper payments are exempt from payroll tax. |
Land tax deferral: land owners due to pay 2020 land tax that have at least one non-residential property (including commercial property, industrial property and vacant land – excluding residential vacant land) and total taxable landholdings below $1 million have the option of deferring their 2020 land tax payment until after 31 December 2020. Landlords are eligible for a 50% reduction if they provide eligible tenants with a 50% or more outright rent waiver for at least three months and can defer payment of remaining tax until 31 March 2021. Land tax reduction for commercial owner-occupiers: owner-occupiers of commercial properties can obtain a 25% waiver of the property’s 2020 land tax, and payment of the remaining tax can be deferred to 31 March 2021, if their annual aggregated turnover was less than $50 million in either 2018/19 or 2019/20 and they are receiving JobKeeper payments. There are different eligibility requirements for pubs, clubs and restaurants with a liquor licence.
Vacant residential land tax waiver: the Vacant Residential Land Tax for 2021 will be waived for properties that are vacant in 2020. |
Business Support Fund:12 businesses with payrolls up to $10 million which have been impacted by the COVID-19 shutdown may be eligible to receive grants up to of $20,000 under the Business Support Fund. Applications for the third round of funding have closed. Stamp duty for commercial and industry property in regional Victoria: The 50% stamp duty discount will be brought forward to 1 January 2021. The discount is currently 20% and was only proposed to reach 50% on 1 July 2023. Note that the 50% discount already applied to certain bushfire affected areas and alpine resorts. Liquor licence fee waiver:14 businesses that have paid for a renewable liquor licence for 2020 will be reimbursed their licence fee and those yet to pay will have the fee waived. The Government has also announced that the 2021 licence fee will also be waived. HomeBuilder grant:15 The HomeBuilder grant is available in Victoria and the criteria is consistent with the programme in New South Wales (see above). Specific industry grants: The Victorian Government has established a number of specific funds to provide grants for businesses in particular industries affected by COVID-19 such as licensed venues, hospitality and regional tourism. Congestion levy waiver and deferral:17 car park owners will receive a 25% waiver of the 2020 congestion levy and can also defer any outstanding balances until 2021.
Landfill levy:18 The adjustments to the landfill levy rates in 2020/21 will be deferred to 2021/22. |
9https://www.sro.vic.gov.au/coronavirus; https://www.sro.vic.gov.au/frequently-asked-questions-response-covid-19
10https://www.sro.vic.gov.au/coronavirus; https://www.sro.vic.gov.au/frequently-asked-questions-response-covid-19
11https://www.premier.vic.gov.au/supporting-victorian-businesses-our-road-covid-normal
12https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-fund
13https://www.sro.vic.gov.au/issues-arising-coronavirus-pandemic-life-insurers
14https://www.sro.vic.gov.au/coronavirus
15https://www.sro.vic.gov.au/news/homebuilder-grants-eligible-owner-occupiers
16https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-package/regional-tourism-accommodation-support-program
17https://www.premier.vic.gov.au/sites/default/files/2020-09/200910%20-%20More%20Tax%20Relief%20For%20Victorian%20Businesses%20And%20Property%20Owners.pdf
18https://www.epa.vic.gov.au/for-business/find-a-topic/landfill-guidance/landfill-and-prescribed-waste-levies
Queensland
payroll tax measures19 | land tax measures20 | other measures |
---|---|---|
Payroll tax refunds, waivers, and deferrals: employers (or part of a group of employers) who pay $6.5 million or less in Australian taxable wages may receive a refund of payroll tax for two months (November and December 2019), a payroll tax waiver for three months (January to March 2020) and may apply for a deferral of payroll tax for the 2020 calendar year. |
Land tax rebate: landlords may receive a reduction in land tax by 25% for eligible properties for the 2019/20 assessment year, if the ability of one or more tenants to pay normal rent is affected by COVID-19 and the landlord provides rent relief to the affected tenant of at least the amount of the land tax rebate. Applications for the 2019/20 rebate have closed.
|
COVID-19 Jobs Support Loans:22 the loan facility provides low interest loans of up to $250,000 for carry-on finance with an initial 12-month interest-free period to assist businesses impacted by COVID-19 to retain employees and maintain operations. Applications for the loans have closed. Liquor licence fee waiver: liquor licensing fees waived for business impacted by enforced safety industry shutdowns. HomeBuilder grant:24 The HomeBuilder grant is available in Queensland and the criteria is consistent with the programme in New South Wales (see above). |
20https://www.qld.gov.au/environment/land/tax/covid-19
21https://www.treasury.qld.gov.au/budget-and-financial-management/revenue-and-taxation/leasing-principles/
22http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme
23https://www.business.qld.gov.au/industries/farms-fishing-forestry/agriculture/agribusiness/market-diversification-resilience-grants
24https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/homebuilder
Western Australia
payroll tax measures25 | land tax measures26 | other measures |
---|---|---|
Payroll tax waiver: the payroll tax for employers (or each member of a group if grouped) whose Australian taxable wages from 1 July 2019 to 29 February 2020 was less than $5 million, or whose Australian taxable wages for the 2019/20 assessment year is less than $7.5 million was waived from 1 March 2020 to 30 June 2020. |
Commercial landlord land tax grants: a first round of grants equivalent to 25% of the landlord's 2019/20 land tax bill was paid to commercial landlords who provided rent relief for a minimum of three months (starting from a date between 1 March 2020 and 31 May 2020) and froze outgoings for small businesses that have suffered at least a 30% reduction in turnover due to COVID-19. A second round of grants are available for the qualifying period starting between 1 September 2020 and 31 December 2020. Applications have closed for the first round and applications for the second round close 28 March 2021. |
Business grant:27 employers, or groups of employers, whose annual Australian taxable wages were between $1 million and $4 million received a one-off grant of $17,500. HomeBuilder grant:31 The HomeBuilder grant is available in Western Australia and the criteria is consistent with the programme in New South Wales (see above). |
26https://www.wa.gov.au/organisation/department-of-finance/covid-19-state-revenue-measures
27https://www.wa.gov.au/government/multi-step-guides/payroll-tax-employer-guide/covid-19-relief-payroll-tax-employer-guide
28https://www.wa.gov.au/organisation/department-of-finance/covid-19-revenuewa-measures
29https://www.wa.gov.au/organisation/department-of-finance/covid-19-revenuewa-measures
30https://www.wa.gov.au/organisation/department-of-the-premier-and-cabinet/covid-19-coronavirus-business-and-industry-advice
31https://www.wa.gov.au/government/announcements/homebuilder-program-assist-renovations-and-new-builds
South Australia
payroll tax measures32 | land tax measures33 | other measures |
---|---|---|
Payroll tax waiver: business groups with annual Australian grouped wages up to $4 million receive a 15 month payroll tax waiver from April 2020 to June 2021. Businesses with annual Australian grouped wages over $4 million who are eligible for the Federal Government's JobKeeper payment will be eligible for a six month waiver from January to June 2021. |
Land tax relief: landlords may receive a reduction in land tax by up to 50% for eligible properties for the 2019/20 land tax year, if the tenant has been financially impacted as a result of COVID-19 and the landlord reduces rent to the affected tenant by at least the amount of the land tax reduction. This reduction is divided into two periods (30 March to 30 October 2020, and 31 October 2020 to 30 April 2021) with up to 25% reduction of the total annual land tax available in each period. Commercial tenants must have an annual turnover of up to $50 million in order to be eligible, and will be considered as being financially impacted if it is eligible for the Federal Government's JobKeeper payment. Owner-occupiers of commercial property with an annual turnover of up to $50 million that are eligible for the Federal Government's JobKeeper payment between 31 October 2020 and 30 April 2021 may be eligible for a reduction of up to 25% of the 2019-20 land tax payable on that property. Land tax reform transition fund: for 2020/21, the Land Tax Transition Fund relief is increased from 50% to 100%, based on existing relief criteria guidelines. |
Jobs Rescue Package:34 certain small business and not-for-profit entities may be eligible to receive a $10,000 grant to support the operation of their business. Applications for this grant have closed. HomeBuilder grant:36 |
33http://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief
34https://www.treasury.sa.gov.au/Growing-South-Australia/COVID-19
35http://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief
36https://www.revenuesa.sa.gov.au/generic-pages/news-articles/homebuilder-program
Tasmania
payroll tax measures37 | land tax measures38 | other measures39 |
---|---|---|
Payroll tax waivers: hospitality, tourism and seafood industry businesses may be eligible for payroll tax waivers for the full 2019/20 financial year. |
Land tax waiver for commercial property: land tax will be waived for commercial property for the 2020/21 financial year, where the business owner can demonstrate that their business operations have been affected by COVID-19.
|
Interest-free loans:40 certain businesses impacted by COVID-19 with a turnover of less than $10 million may be eligible for a loan of up to five years to purchase equipment, restructure business operations, implement initiatives to improve sustainability or viability of the business or ensure that business continuity is maintained.
Commonwealth and Tasmanian HomeBuilder grants:42 The Commonwealth HomeBuilder grant is available in Tasmania and the criteria is consistent with the programme in New South Wales (see above). |
38https://www.sro.tas.gov.au/about-us/covid-19
39https://coronavirus.tas.gov.au/stimulus-and-support/businesses-and-industries
40https://www.business.tas.gov.au/covid-19_business_support_packages/business_support_loan_scheme
41https://coronavirus.tas.gov.au/stimulus-and-support
42https://www.sro.tas.gov.au/about-us/covid-19
43https://www.sro.tas.gov.au/Documents/HomeBuilder-grants-guideline.pdf
Australian Capital Territory
payroll tax measures44 | land tax measures46 | other measures47 |
---|---|---|
Payroll tax waiver: a one-off, six month waiver of payroll tax from April to September 2020 was available for employers operating in the categories which have been prohibited from operating due to COVID-19 such as hospitality (cafes, pubs, hotels, clubs and restaurants) and entertainment industries. Businesses unable to trade or only able to operate on a very limited basis due to an emergency public health direction may also be eligible for a waiver for September, October and November 2020. Construction deferral for payroll tax: ACT businesses in the construction industry could defer their payroll tax liability, interest-free for six months from April to September 2020. JobKeeper payments: wages that are subsidised by the Federal Government's JobKeeper payments are exempt from payroll tax. Payroll tax exemption for apprentice or trainee wages:45 wages paid to apprentices or trainees employed after 1 August 2020 are exempt from payroll tax from the start of their employment until 31 January 2021. |
Land tax credit: landlords of residential properties who reduce rents by at least 25% for tenants impacted by COVID-19 may be eligible for land tax credits equal to 50% of the rent reduction, capped at $1,300 per quarter.
|
Further support to small and medium businesses, including:48
Deferred assessments: the issuance of general rates, land tax and land rent assessments for the first three quarters of 2020-21 instalments will be deferred by three weeks. HomeBuilder grant: The HomeBuilder grant is available in the ACT and the criteria is consistent with the programme in New South Wales (see above). Stamp duty concession for owner occupiers: stamp duty concessions may be available for home buyers planning to live in their new property where contracts are exchanged between 4 June 2020 and 30 June 2021. No duty is payable on purchases of single residential dwelling blocks. For purchases of off-the-plan unit-titled apartments and townhouses, no duty is payable for purchases up to $500,000 and a reduction of $11,400 for purchases between $500,000 and $750,000. |
45https://www.cmtedd.act.gov.au/open_government/inform/act_government_media_releases/barr/2020/new-jobs-and-financial-support-for-young-people-in-canberra
46https://www.revenue.act.gov.au/covid-19-assistance/land-tax-credit-application
47https://www.covid19.act.gov.au/economic-support/economic-survival-package/supporting-local-businesses-and-the-economy
48https://www.covid19.act.gov.au/economic-support/economic-survival-package/supporting-local-businesses-and-the-economy
Northern Territory
payroll tax measures49 | land tax measures | other measures |
---|---|---|
Payroll tax relief: payroll tax waivers are available for the March 2021 to April 2021 return periods for employers who are listed on the NT Government's Central Hardship Register, and total taxable Australian wages for 2019-20 of under $7.5 million. Employers may be eligible for a payroll tax exemption for up to two years in relation to wages paid to:
JobKeeper payments: wages that are subsidised by the Federal Government's JobKeeper payments are exempt from payroll tax. |
Land tax is not imposed in the Northern Territory. |
Jobs Rescue and Recovery plan:50 the NT Government has provided grants to businesses and home owners. Applications have closed for these grants. $50 million small business survival fund:51 the fund provides grants to small business in the hospitality, tourism and entertainment industries to support them during closures caused by COVID-19. Applications for this grant have closed. Freezing of government charges: all regular increases to government fees and charges, including electricity costs, will be put on hold. This means that fees and charges which are normally increased annually or regularly will not be increased until 1 July 2021. Reduced power, water and sewerage bills: businesses that demonstrate substantial hardship due to the coronavirus crisis will have their power, water and sewerage bills reduced by 50% for six months (for regulated utility tariffs). HomeBuilder grant: The HomeBuilder grant is available in the Territory and the criteria is consistent with the programme in New South Wales (see above). |
49https://treasury.nt.gov.au/dtf/territory-revenue-office/payroll-tax; https://treasury.nt.gov.au/dtf/territory-revenue-office/payroll-tax/payroll-tax-relief
50https://businessrecovery.nt.gov.au/
51https://businessrecovery.nt.gov.au/businesses/small-business-survival-fund
Authors: Barbara Phair, Partner; Costa Koutsis, Partner; and Anthony Hui, Senior Associate.
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