As part of the state's 2020-21 budget, Victorian businesses will get a tax credit of 10 cents for every dollar they increase taxable Victorian wages, as the government looks to encourage businesses to open their doors, hire more staff and re-emerge from the pandemic.
The incentive essentially means the more these businesses rehire staff and employ new workers, the less payroll tax they’ll have to pay.
“There is no sugar-coating it, this pandemic has hit businesses hard. This support will help them open their doors, get back on their feet and employ more Victorians,” said Treasurer Tim Pallas.
This emergency tax relief measure will be available for two years and is tipped to save businesses a combined $836 million and help support an estimated 9,400 people back into employment.
The Victorian government is already allowing small and medium businesses to defer their 2020-21 payroll tax until next financial year, providing a $1.7 billion boost for businesses.
Now, it has built on this support by increasing the threshold for annual payroll tax payment from 1 July 2021. As a result, up to 7,000 extra businesses will now be able to pay their payroll tax annually, rather than monthly, cutting red tape and boosting their cash flow.
Moreover, the government has announced an investment of over $293 million to fund a stamp duty concession of up to 50 per cent for homes valued at up to $1 million for contracts entered into from 25 November 2020 to 30 June 2021.
Relief will be targeted at newly built or “off-the-plan” homes, which will receive a 50 per cent waiver. Existing homes will be eligible for a 25 per cent waiver.
“With a waiver on stamp duty, we’ll help more Victorians find their home and get more Victorians back to work,” Mr Pallas said.
In a bid to lure businesses to regional Victoria, a 50 per cent stamp duty concession on the purchase of commercial and industrial properties will be brought forward to January 2021 – encouraging more businesses to open, relocate or expand, and helping our hard-hit regional economies bounce back.
This investment is tipped to save businesses a further $39.6 million.
