Victorian Government announces "concessions" for Payroll tax, Land tax and Liquor licence fees

Victorian Payroll tax concession to refund recent payroll tax payments

The Victorian Government has announced a range of concessions to support small and medium sized businesses and help these businesses retain employees in response to impact of COVID-19.

 Businesses with annual taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived.  Eligible businesses must continue to lodge returns but do not need to make further payments for the 2019-20 financial year.

 The State Revenue Office (SRO) will contact eligible businesses directly in relation to the reimbursement of payroll tax already paid for the 2019-20 financial year, with the SRO planning to start payments from 27 March 2020.  We note that this concession is a refund, and not a loan from the SRO.

Furthermore, businesses will also be able to "defer making payment" of any payroll tax liability for the first three months of the 2020/21 financial year (ie. September 2020 quarter) until 1 January 2021.

Finally, the SRO plans to send more information about the administration of these relief measures directly to eligible businesses. 

Victorian 2020 Land Tax payments will be deferred for eligible small businesses

Land owners that have at least one taxable non-residential property and total taxable landholdings below $1 million will be eligible for this concession.

We note that non-residential property includes:

• Commercial property,
• Industrial property, and
• Vacant land (excluding residential vacant land)

This concession will give eligible land owners the option to defer payment of their 2020 land tax payment until after 1 January 2021.   However, we note that payment will need to be paid in full by 31 March 2021.

The SRO plans to contact all eligible taxpayers directly in relation to this concession, and they advise that you do not need to do anything at this time.

Victorian liquor licensing fees for 2020 will be waived

The Government will also support the hospitality sector by waiving liquor licensing fees for 2020 for affected venues and small businesses.

If your business has already paid their liquor licence fee for 2020, the SRO will reimburse the business, regardless of whether the licence fee was paid directly to the SRO or the Victorian Commission for Gaming and Liquor Regulation.

 If your business has not paid their liquor licence fee for 2020 yet, then the 2020 renewable liquor licence fee will be waived, and you do not need to do anything further.