A breakdown of key COVID-19 stimulus measures for ECEC

In light of the extensive economic damage created by COVID-19, States and Territory Governments are moving quickly to release stimulus packages designed to cushion the impact on their business and household communities. 

 

Below is a breakdown of the measures in each state and territory currently launched, many of which will be available to early childhood education and care (ECEC) providers.

 

Victoria

Payroll tax refunds – Businesses who have paid payroll tax of less than $3 million in the 2019-20 financial year will be eligible for full payroll tax refunds. Payments will start flowing in the week beginning 30 March 2020 with the average small and medium sized business saving up tp $23,000. 

 

Future payroll tax payment deferrals – The same businesses that are eligible for payroll tax refunds will be able to defer their payroll tax for the three months ended September 2020 until 1 January 2021 as an additional measure to free up cash flow. 

 

Business support fund set up for businesses that don’t pay payroll tax – A $500 million Business Support Fund will be set up to support areas of the Victorian economy hit hard by the COVID-19 outbreak. The early childhood education and care sector is not specifically mentioned although in theory if a service is materially impacted by COVID-19 they are eligible to apply. 

 

A Working for Victoria Fund will also be set up with a $500 million injection of cash. The fund is designed to support workers who have lost their jobs due to COVID-19 to find new opportunities. 

 

Not-for-profit organisations at this juncture have not been addressed in this Victorian package however support is available at the Federal level for organisations that qualify. 

 

Please see here for information. 

 

New South Wales 

Payroll tax waivers – Small and medium-sized businesses with payrolls of up to $10 million will not have to pay their payroll tax in the three month ended June 2020 period. 

 

Future payroll tax thresholds to be increased – Payroll tax thresholds will be increased to $1 million in 2020-21 meaning that business with total payroll of less than $1 million will pay no payroll tax in the 2020-21 financial year.

 

In addition, a number of other measures including but not limited to license fee waivers, additional employment opportunities and bringing forward capital works have been announced. 

 

Not-for-profit organisations at this juncture have not been addressed in this New South Wales package however support is available at the Federal level for organisations that qualify. 

 

Queensland – (Updated to reflect second stimulus package – new measures marked by *)

Payroll tax refunds* – All Queensland based businesses that pay payroll tax will be eligible for a two month payroll tax refund. 

 

Payroll tax free period* – Small and medium sized businesses that pay payroll tax will be eligible for a three month payroll tax free period.

 

Payroll tax payment deferrals* – Businesses that pay less than $6.5 million in taxable wages that have seen business impacted by COVID-19 may be able to defer payment of their payroll tax returns until 31 January 2020. 

 

Job support loans – Queensland businesses impacted by COVID-19 will be eligible to receive loans of up to $500 million to support their businesses. The loans will be low interest with an initial interest free period of 12 months. 

 

Business support services – Small and medium-sized businesses impacted by COVID-19 can access workshops in partnership with local bodies, business mentoring and a dedicated small business hotline to access information and referrals to support services. 

 

Not-for-profit organisations at this juncture have not been addressed in this Queensland package however support is available at the Federal level for organisations that qualify. 

 

Western Australia

One-off grants to small and medium-sized businesses – Businesses whose annual Australian taxable wages are between $1 million and $4 million will receive a one-off grant of $17,500 to assist them to manage the impacts of COVID-19. No applications are required. The grants will be paid automatically.

 

Future payroll tax thresholds to be increased – Payroll tax thresholds will be increased to $1 million in 2020-21 meaning that business with total payroll of less than $1 million will pay no payroll tax in the 2020-21 financial year. The measure will apply for six months. 

 

Payroll tax payment deferrals – Businesses that pay less than $7.5 million in taxable wages that have seen business impacted directly or indirectly by COVID-19 may be able to defer payment of their payroll tax returns until 21 July 2020. Click here on how to apply. 

 

Business support services – Small and medium-sized businesses impacted by COVID-19 can access a dedicated small business hotline to access information and referrals to support services. To access contact 133 140 or [email protected] or click here. 

 

Not-for-profit organisations at this juncture have not been addressed in this Western Australia  package however support is available at the Federal level for organisations that qualify. 

 

Australian Capital Territory 

Payroll tax payment deferrals – All ACT businesses that pay less than $10 million in taxable wages that have seen business impacted directly or indirectly by COVID-19 can defer their payment of 2020-21 payroll tax interest free until 1 July 2022. Tax returns will be required to lodge as normal but payment will be deferred. For more information click here. 

 

General rates rebates available for landlords – Commercial property owners with an Average Unimproved Value below $2 million on their property are eligible for a rebate on their commercial rates fixed charge. Commercial rate payers will receive a credit of $2,622 (equivalent to the annual fixed charge) to their 2019-20 general rates, in quarter four. This will be applied automatically.

 

Electricity rebates for small business owners – Small business owners with electricity usage below 100 megawatts per year will see rebates of $750 automatically applied to their next electricity bill in around June or July 2020. The rebate will apply regardless of whether customers are on standing or market offers.

 

Subsidies for apprenticeships and traineeships – Support for the Vocational Education and Training Sector will be provided by increasing subsidies for apprenticeships and traineeships and other VET students to access nationally recognised training in areas linked to skills needs across a range of industries.

 

Business support services – Small and medium-sized businesses impacted by COVID-19 can access a dedicated small business hotline to access information and referrals to support services. Business owners can receive up to four hours of fully subsidised, face to face tailored advice and access online business development resources. To access contact 6297 3121 or 6205 0900 if questions specific to the package are applicable. 

 

Not-for-profit organisations at this juncture have not been addressed in this ACT package however support is available at the Federal level for organisations that qualify. 

 

Tasmania

Payroll tax waivers – Small and medium-sized businesses with payrolls of up to $5 million will be able to apply based on the immediate impact of the virus on their businesses to waive their payroll tax payments for the remaining three months from March to June 2020.

 

Youth employment payroll tax rebate –  A youth employment payroll tax rebate scheme for young people from 1 April 2020 will be introduced.  At a cost of around $280,000, the Scheme provides a payroll tax rebate for one year, to businesses that employ a young person aged 24 and under.

Grants for employing apprentices and trainees – The Government will also provide $2.1 million for one-off $5,000 grants for businesses that hire an apprenticeship or trainee, complementing the Federal Government’s apprenticeship package.

 

Northern Territories

Payroll tax exemption for hiring NT employees – The payroll tax exemption for hiring Northern Territory employees will be extended to 30 June 2021.

 

Immediate work grant for not for profits – Grants of up to $100,000 will be given to not-for-profit and community organisations to engage local businesses to do repairs, renovations and upgrades to their property and facilities. The first $50,000 will be paid as a grant, and the NT Government will also match any renovation costs that exceed $50,000 on a dollar-for-dollar basis up to a maximum of $100,000 total.

 

Business improvement grants – All Territory businesses will be able to access a $10,000 grant, followed by an additional $10,000 grant if they contribute $10,000 of their own. Each business is only eligible to receive one grant, and it can be used to complete one or two different jobs on their premises. The grant can be used to purchase goods and services to make permanent physical improvements to a business (land and / or building) that help improve its efficiency and customer experience.

 

Flexibility offered to previous government grant recipients – Organisations that receive government grants will be offered flexibility in the delivery of agreed key performance indicators where the ability to meet these is impacted COVID-19.

 

South Australia – (Updated to reflect second stimulus package)

Payroll tax waiver – All South Australian businesses with an annual payroll tax below $4m will receive a payroll tax waiver from April to September 2020. 

 

Payroll tax deferral – All South Australian businesses with an annual payroll tax above $4m will be able to defer payroll tax payment for six months. 

 

Business and Jobs support fund – A $300m fund to support individual businesses and industry sectors directly affected by coronavirus that face potential closure. 

 

Community and Jobs fund – A $250m fund to support community organisations, including non-profit organisations whose operations have been impacted by the coronavirus.