Overview of State and Territory Government Announcements

Overview of State and Territory Government Announcements. See below a summary of State tax measures.

This information is current as of 30 April 2020

*Denotes an application may be required to access the concession.

Australian Capital Territory 

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ACT Revenue Office >

Payroll tax

• For businesses whose operations are directly affected by the “prohibited activities list”, they will receive a six-month waiver of payroll tax from April to September 2020*.  “Prohibited activities” include those business activities relating to entertainment venues, restaurants and cafes and other venues involving food and drink (other than bottleshops and takeaway), health and fitness activities and venues, gaming and entertainment venues, community and youth centres, places of worship and play centres.
• For businesses with group Australian taxable wages of up to $10 million, the payment date for any 2020-21 payroll tax liabilities will be deferred to 1 July 2022*.  Businesses will still need to lodge their 2020-21 returns as normal but not make the associated payment until the deferred date. 
• Construction industry businesses located in the Australian Capital Territory can defer their payroll tax liability for six months from April to September 2020*.

Land tax

• Landlords, who reduce rent on their privately rented properties by at least 25% due to COVID-19, may be eligible for a land tax credit to cover 50% of the rental reduction, up to a limit of $1,300 per quarter.
• Commercial property owners with an Average Unimproved Value of $2 million or less 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.

New South Wales

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Revenue NSW >

Payroll tax

• Businesses whose total grouped Australian taxable wages for the 2019-20 year are no more than $10 million will have their annual tax liability reduced by 25% when they lodge their annual return.
• For those businesses who lodge and pay monthly and whose total grouped Australian taxable wages will be no more than $10 million for the current financial year, no payment for the months of March, April or May 2020 will be required.  These businesses will still have to lodge their annual return.
• Payroll tax customers whose total grouped Australian wages for the 2019-20 year are over $10 million will have the option of deferring the payment of payroll tax for up to six months.
• The increase in the payroll tax threshold to $1 million has been brought forward. Therefore, instead of commencing from 1 July 2021, the payroll tax threshold for all businesses will be $1 million as of 1 July 2020.

Land tax

• Commercial and residential landlords will be able to apply for a waiver of up to 25% of their 2020 calendar year land tax liability, on the proviso that they provide rent relief to their eligible tenants of the same value or greater*. 
• Landlords will also be entitled to a deferral of payment of their remaining land tax liabilities for a further three months if they pass on rent relief to their eligible tenants for an amount equal to, or greater than, 25% of their land tax liability*. 
• Tenants eligible for rent relief under these measures are:
   
  • Commercial tenants with turnover of less than $50 million who have experienced a decline in revenue of at least 30% due to COVID-19; and
  • Residential tenants who have suffered a loss in income of at least 25% due to COVID-19.
• Separately, Revenue NSW may offer both instalment plans and payment plans upon request.

Northern Territory 

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Territory Revenue Office >

Payroll tax

• Businesses with a confirmed listing on the Department of Trade, Business and Innovation’s Central Hardship Register and group Australian taxable wages of up to $7.5 million are entitled to a payroll tax waiver for the March to August 2020 return periods*.
• A payroll tax deferral until 21 September 2020 is available for those businesses on the Central Hardship Register with group Australian taxable wages of $7.5 million or more if they have suffered a reduction in turnover of at least 50% due to COVID-19 when compared to the corresponding month or quarter in 2019*.
• The existing temporary exemption for hiring a Territory resident, which was due to expire this financial year, will be extended to 30 June 2021.

Land tax

• Not applicable as no land tax is payable in the Northern Territory.

Queensland

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Office of State Revenue >

Payroll tax

• Businesses who pay $6.5m or less in group Australian taxable wages will be eligible for:
  • a refund of their Queensland payroll tax for two months;
  • a waiver of payroll tax for the next three months; and
  • a deferral of the payment of the payroll tax for the remainder of the 2020 calendar year until 14 January 2021*.
• Businesses with group Australian taxable wages in excess of $6.5m who are “directly or indirectly affected” by COVID-19 can apply for:
  • a refund of their Queensland payroll tax for two months; and
  • a deferral of the payment of the payroll tax for the remainder of the 2020 calendar year until 14 January 2021*. 
• There are two separate applications form that must be completed to access these concessions, with the application for the refund and waiver measures closing on 31 May 2020.
• A business is "directly or indirectly affected” by coronavirus if their current turnover, profit, customers, bookings, retail sales, supply contracts or other factors are negatively affected compared with normal operating conditions. 

Land tax

• Commercial and residential landlords are eligible for a 25% rebate of their 2019-20 land tax liability where they provide rent relief to eligible tenants of the same value or greater.  Queensland landlords will also be eligible for a 25% land tax rebate for eligible unoccupied properties*.
• A landlord will be able to access the land tax rebate where at least one of the following circumstances apply:

1. The landowner leases all or part of a property to one or more tenants and all the following apply:

• The ability of one or more tenants to pay their normal rent is affected by COVID-19
• The landlord will provide rent relief to the affected tenant(s) of an amount at least commensurate with the land tax rebate; and
• The landlord will comply with the leasing principles even if the relevant lease is not regulated.

2. All the following:

• All or part of the landlord’s property is available for lease;
• The landlord’s ability to secure tenants has been affected by the COVID-19 pandemic;
• The landlord requires relief to meet its financial obligations; and
• The landlord will comply with the leasing principles even if the relevant lease is not regulated.
   
• Separately, the Queensland Government has also announced the following two land tax measures:
  • a waiver of the 2% land tax foreign surcharge for foreign entities for the 2019-20 assessment year
  • a three-month deferral of land tax liabilities for the 2020-21 assessment year.

South Australia
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RevenueSA >

Payroll tax

• Businesses with group Australian taxable wages of up to $4m will be entitled to a six-month waiver of payroll tax (for the return periods between March and August 2020 inclusive).
• Businesses with group Australian taxable wages of over $4m will be entitled to a  six-month deferral of payroll tax if they can demonstrate a significant impact on their cash flow caused by COVID-19*. Monthly returns will still need to be lodged, with payments deferred to October 2020. 

Land tax

• The SA Government has announced a 25% reduction on the land tax payable on a parcel of land in the 2019-20 land tax year for commercial and residential landlords who provide tenants impacted by COVID-19.
• The land tax relief is available when:
   
  • the land is used for residential or commercial purposes;
  • the land is being leased to:
    • a residential tenant, or
    • a commercial tenant with an annual turnover of up to $50m, who has been financially impacted as a result of the COVID-19 pandemic;
  • the landlord reduces the rent of the affected tenant by at least as much as the land tax reduction; and
  • the land tax is directly related to the land for which the rent has been reduced.
• “Financially impacted” is considered to be:
   
  • for commercial tenants - a 30% drop in revenue due to COVID-19 and are eligible for the Federal Government's JobKeeper Payment; and
  • for residential tenants – financial hardship due to COVID-19.
• This relief is also available to residential and commercial land owners who are unable to secure a tenant because of COVID-19.  To be eligible for land tax relief, eligible landlords will need to demonstrate that the land was leased to 30 March 2020, but has since been vacant due to the impact of COVID-19.
• Separately, businesses and individuals paying land tax quarterly in 2019-20 will be able to defer payment of their third and fourth quarter instalments for up to six months.
• Businesses and individuals will be sent their land tax notices of assessment as usual, with the information provided on how the deferral will be administered.
• For the 2020-21 financial year, the existing Land Tax Transition Fund relief will be increased from 50% to 100% based on existing relief criteria guidelines.

Tasmania

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State Revenue Office >

Payroll tax

• Payroll tax for businesses in the hospitality, tourism and seafood industries will be waived for the 2019-20 year. These businesses will not be required to lodge payroll tax returns for March, April and May 2020, but will be required to lodge their annual return for 2019-20* 
• Businesses with group Australian taxable wages of up to $5m will be eligible to apply for a rebate / waiver of their payroll tax for the 2019-20 year if they can demonstrate that their operations have been impacted by COVID-19*. These businesses will not be required to lodge payroll tax returns for March, April and May 2020, but will be required to lodge their annual return for 2019-20.
• The Tasmanian State Revenue Office has issued the following guidelines to assist taxpayers determine their eligibility:
  • Guidelines for businesses in the hospitality, tourism and seafood industries; and
  • Guidelines for business with group Australian taxable wages of up to $5m.
• From 1 April 2020, for employers who pay payroll tax and employ new youth employees under the age of 25, there is a one-year rebate of the payroll tax on the wages paid to these employees. The new employee must be employed at a point between 1 April and 31 December 2020.

Land tax

• Land Tax will be waived for commercial property for the 2020-21 financial year, where the business owner: 
  •  is liable for the land tax; and 
  • can demonstrate that their business operations have been affected by COVID-19. 
• “Commercial property” refers to property classified as such for government valuation purposes.
• At this stage, there are no guidelines issued by the Tasmanian State Revenue Office to assist in determining how a business has been impacted by COVID-19.
• Other businesses experiencing hardship in paying their land tax assessments can apply for a deferral of payment to 30 June 2020*.

Victoria

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State Revenue Office >

Payroll tax

• For businesses with Victorian taxable wages of $3 million or less, a full refund / waiver of any payroll tax paid or payable for the 2019-20 financial year will be available.  Eligible businesses must continue to lodge returns but do not need to make any further payments for this financial year.  Eligible businesses will need to make an application to have any payroll tax already paid for 2019-20 refunded. 
• The same businesses will be able to defer any payroll tax for the first three months of the 2020-21 financial year.
• The State Revenue Office has clarified that the $3 million threshold applies to each employer and not on a payroll tax group basis.

Land tax

• Commercial and residential landlords will be able to apply for a waiver of up to 25% of their 2020 calendar year land tax liability.  For landlords who are eligible for this land tax relief, the payment date for any remaining 2020 land tax liability will be deferred until March 2021*. 
• Victorian landlords who are unable to secure a tenant (commercial or residential) because of COVID-19 are also eligible for the 25% land tax waiver and the deferral of payment of the remaining 2020 land tax liability to March 2021*.
• To be eligible, landlords must demonstrate that:
   
  • All or part of their property is rented or all or part of the property is currently available for lease;
  • At least one of the tenant’s ability to pay their normal rent or the landlord’s ability to secure a tenant is affected by the COVID-19; and
  • The landlord has provided rent relief to the affected tenant/s in accordance with the following eligibility requirements:
    • For commercial landlords, landlords need to provide rent relief that is consistent with the leasing principles. 
    • For residential landlords, landlords will need to at least pass on the equivalent amount in rent relief to its tenant/s.
• We expect the State Revenue Office to issue further guidance relating to how landlords can apply for land tax relief in the coming days.
• Separately, land owners that have at least one taxable non-residential property and total taxable landholdings below $1 million can apply for a deferral of their land tax payment. 
• The payment can be deferred until after 1 January 2021 but will need to be paid in full by 31 March 2021.
• Non-residential property includes:
   
  • Commercial property,
  • Industrial property, and
• Vacant land (excluding residential vacant land).

Western Australia

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Department of Finance >

Payroll tax

• Businesses with group Australian taxable wages between $1 million and $4 million will receive an automatic one-off grant of $17,500. 
• Payroll tax will be waived for March to June 2020 for employers who have group Australian taxable wages of less than $7.5 million at 30 June 2020. 
• Businesses with group Australian taxable wages less than $5 million at 29 February 2020 can automatically claim the payroll tax waiver. 
• Businesses with group Australian taxable wages of $5 million or more at 29 February 2020, or new employers registered for payroll tax from 1 March 2020, can apply to defer lodgment and payment of returns. Payroll tax for March to June 2020 will be waived at annual reconciliation if Australian taxable wages are less than $7.5 million at 30 June 2020.
• The increase in the payroll tax threshold has been brought forward. Therefore, instead of commencing from 1 January 2021, the payroll tax threshold for all businesses will be $1 million as of 1 July 2020.

Land tax

• Commercial landlords are eligible for a 25% rebate of their 2019-20 land tax liability where they provide the minimum required rent relief to eligible tenants.  Commercial landlords must provide rent relief that equates to a minimum of three months’ rent and freeze outgoings to small businesses starting from 1 March 2020, or from a date thereafter, but before 31 May 2020*.
• Landlords must not seek to recover the rent and outgoings waiver (in whole or in part) from their tenant(s) at the end of the three-month period.
• An eligible tenant is a small business which must have suffered at least a 30% reduction in turnover due to COVID-19.

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