26 September 2023

Tax breaks to build businesses

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Small and medium businesses are to receive payroll tax refunds as part of a State plan to relieve pressure on the business sector during the COVID-19 crisis.

Premier, Daniel Andrews and Treasurer, Tim Pallas announced the $1.7 billion economic survival and jobs package that was developed following discussions at National Cabinet meetings.

“The Government will provide full payroll tax refunds for the 2019-20 financial year to small and medium-sized businesses with payroll of less than $3 million,” Mr Andrews said.

“Payments will start flowing next week and will save eligible business up to $113,975 a year, with businesses saving an average of $23,000,” he said.

“These businesses employ around 400,000 workers.”

Mr Andrews said the same businesses would also be able to defer payroll tax for the first quarter of the 2020/21 financial year.

“Commercial tenants in Government buildings can apply for rent relief – a move private landlords are also being encouraged to undertake,” he said.

“The Government will pay all outstanding supplier invoices within five business days – releasing up to $750 million into the economy earlier.”

He said the Government would also provide $500 million to establish a Business Support Fund intended to support the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.

Mr Andrews said the 2020-21 Victorian Budget had been deferred, in line with all other Australian Governments and agreed by the National Cabinet.

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