States and territories around the country are enacting their own responses to the ongoing economic downturn.
We’ve cut through the BS and political spin (and frankly, there’s a lot), so you can quickly understand what’s out there and if you’re eligible.
Victoria’s $1.7 billion package includes the following support for all small and medium businesses, including trade businesses:
- An immediate payroll tax refund for the 2019-2020 financial year for businesses with payrolls of less than $3 million. No need to apply – businesses who are eligible will be contacted and refunded all payroll tax already paid in this financial year. You must continue to lodge future returns but won’t need to make any more payments for this financial year.
Tasmania’s $420 million package is mainly geared for their hospitality and tourism sectors. There are some benefits for tradies:
- A payroll tax waiver for businesses with up to $5 million in payroll for April-June 2020. You’ll only be eligible if your business has been affected by coronavirus, but the state has not yet announced the criteria or the application process.
- Bringing forward their Small Business Grants Program for Apprentices, a $5,000 grant for businesses that hire an apprentice in the building, construction and manufacturing industries. Apply using the form here.
- Interest-free grants for local governments that will hopefully encourage local trade work, as well as bringing forward maintenance on public buildings.
New South Wales
NSW has announced a $1.6 billion stimulus package to support jobs through tax cuts and savings. This includes:
- Waiving payroll taxes until the end of the financial year (three months). If your business’s payroll is under $10 million, you’re eligible.
- Waiving a range of fees and charges that apply to small businesses like trades. We’re still waiting for the government to announce what fees this applies to and who will be eligible.
- Bringing forward maintenance and capital works, which a treasurer spokesperson said is designed to create opportunity “for businesses of all sizes”. (Source: SmartCompany)
You can read the full release here.
The ACT has announced a $12 million funding package. Some highlights for tradies:
- Payroll taxes deferred for up to 12 months for businesses that pay up to $10m in wages. This will be implemented by a special business team at a later date.
- A $750 power bill rebate for small businesse owners that will be automatically included on your next power bill.
- Funding infrastructure and maintenance projects that will be performed by local businesses.
Queensland has announced a $4 billion package which is mainly focused on businesses who have employees. On offer is:
- A payroll tax refund, and a payroll tax holiday for businesses who pay less than $6.5 million in taxable wages. You need to apply for the refund/holiday here by 31 May 2020.
- A 12-month interest-free loan facility for loans of up to $250,000 to help businesses retain their employees and maintain operations. You can register your interest here.
- A $500 power bill rebate for small business owners that will be automatically included on your next power bill.
The NT has announced a $65 million package to try and protect their local economy, including:
- the Home Improvement Scheme where homeowners in the NT can get a $4000 or $6000 voucher for a local tradie to undertake renovations on their property. If you want to be listed amongst the businesses that can undertake work, you can register here from 30 March 2020.
- the Business Improvement Grant where businesses will receive a $10,000 grant they can use to buy new equipment or complete upgrades to their offices and workshops. If businesses are also able to contribute $10,000 of their own they’ll then get another $10,000 from the government – taking it to a total of $30,000. However, you need to spend all of the money with a local NT business. Check your eligibility and apply from 30 March 2020 here.
You can read more about the NT’s stimulus package on their dedicated page, here.
Western Australia have announced a few relief measures, including a $607 million package supporting households and small businesses. For tradies, this includes:
- A freeze in household fees and charges. This includes electricity, water and vehicle bills. Hopefully this takes some of the financial pressure off sole traders and small businesses.
- Payroll tax grants. Unfortunately, these only apply to businesses with a payroll between $1 million and $4 million, and it’s not clear if they will be automatic come tax time or if you’ll have to apply.
- However, they did announce payroll tax deferrals, for businesses who pay $7.5 million or less in taxable wages and have been impacted by COVID-19. Access the form to apply here.
South Australia has announced a $350 million stimulus package. The state government has yet to announce the full details, but it does include:
- Upgrading country hospitals.
- Increasing the Planning and Development Fund, which should fund more local development and jobs.
- Up to $5000 for every new apprentice hired through their Skills for Business program. The funding is rolled out across the apprentice’s time with the business. See the full conditions here.