Posted on 27/3/2020
A $60M waiver and deferral package has been announced for businesses that pay payroll tax.
All businesses with $4M (or less) of grouped Australian taxable wages will have their 6 month payroll tax liabilities from April to September 2020 waived. This measure is expected to assist up to 2,400 businesses and save them up to $84,000 over the six months (average saving $25,000).
There is no application process. RevenueSA will notify eligible businesses via RevenueSA Online. Returns are still required to be lodged during this period. The waiver of payroll tax for the above period will be finalised via the annual reconciliations for 2019-20 and 2020-21.
Businesses with grouped Australian taxable wages above $4M can defer payroll tax payments for 6 months (April to September) only if they can demonstrate (on application) that their cash flow has been significantly impacted by the coronavirus. These businesses will be required to pay their liabilities in October 2020.
An online application is being developed and these businesses must continue to lodge returns.
Around 4,300 businesses will be able to access the deferral (if impacted by coronavirus), increasing overall cash flow by approximately $580M.
A $13M land tax relief package has been announced for SA land owners.
From 30 June 2020, the land tax reform will commence, with the SA Government suggesting savings for land owners of $189m over the next three years.
Individuals and businesses with outstanding quarterly bills for the 2019-20 FY (third and fourth quarter instalments) will be able to defer these payments for 6 months (up to 28,000 private land tax ownerships will benefit). No application is required. Notices will still be issued but will contain information regarding the deferral.
The deferral does not apply to liabilities in arrears.
As part of transitioning to the new land tax regime, an ex gratia relief scheme was created to provide relief from increases in an owner’s land tax due to aggregation.
The following table summarises the relief provided where a land owner experiences an increase in land tax above $2,500 but less than $102,500 due to the aggregation measures from 30 June 2020:
For 2020-21, the amount of the relief will be increased from 50% to 100% based on existing relief criteria guidelines. Additional relief is therefore capped at $50,000.
Liquor licence fees for 2020-21 for hotels, restaurants, cafes and clubs that are forced to close as a result of new social distancing restrictions will be waived.
The Government is relaxing the existing Job Accelerator Grant (JAG) criteria requiring an employer to have maintained their overall employment levels for a full year to be eligible for their second anniversary JAG payment.
Claims for the second JAG payment from 1 February to 30 June 2020 will be assessed on staffing levels as at 31 January 2020 rather than the relevant two year anniversary date.
For more information on the JAG visit SA.GOV.AU