Victorian businesses struggling to make it through the Covid-19 crisis will greatly benefit from the additional $491 million in relief announced by Treasurer Tim Pallas today.
Victorian businesses participating in the Commonwealth’s JobKeeper scheme will now be exempt from payroll tax and the WorkCover premium on payments to their employees if their staff are currently stood down. Payments to employees not stood down but receiving more income as a result of JobKeeper than their regular pay will also be exempt from payroll tax and the WorkCover premium.
As a result of this relief package, a business with 500 employees that have been stood down will avoid around $70,000 per month in payroll tax and around $20,000 in WorkCover premiums – meaning more money in the hands of business owners to prepare for the restart.
The Government announced it will also freeze all fees and fines that were due to be increased in July at current levels – including car registration, traffic infringements, court-imposed penalties and permit fees. The Fire Services Property Levy paid by all Victorian households will also be frozen at this year’s collection level.
To be attributed to Victorian Chamber Chief Executive Paul Guerra:
“Applying payroll tax on a Commonwealth support fund for employees just did not make sense. It was making it even more difficult for Victorian businesses, and we made that representation to the State Government.
Businesses trying to do the right thing and keep people in work were being hit by state taxes and fees on jobs, often having to go into debt just to pay the State.
The Andrews Government has listened to the input from the Victorian Chamber and have acted accordingly. As a result of this change Victorian businesses can now better focus on recovery for when the green light is given to re-start.”
