On Friday, 20 March 2020, the ACT government announced a series of measures which will provide businesses with rebates and waivers to combat the global pandemic downturn.
These measures include a waiver of payroll tax for businesses in hospitality, creative arts and entertainment industries. Also, deferrals will be available for all other small and medium-sized businesses.
Small business will also receive a $750 rebate on their next power bill. Businesses will also be entitled to a credit on commercial rates of $2,622.
Payroll tax deferral
All ACT businesses with Group Australia-wide wages of up to $10 million can defer their 2020-21 payroll tax, interest free until 1 July 2022. These rebates and waivers will provide relief for COVID-19 affected businesses in ACT. Businesses will need to complete a simple online application form (which will be available soon on the ACT Revenue Office website at: www.revenue.act.gov.au) to confirm their eligibility.
Eligible businesses will need to lodge their payroll tax returns as normal but will not be required to make the associated payment at the usual time. If the deferred amount is paid before 1 July 2022, no interest will be charged. Interest will be applied to any outstanding deferred amounts from 1 July 2022.
- – For those who lodge their payroll tax assessment monthly, deferral can commence for their July 2020 payroll tax liability, which is usually payable by 7 August.
- – For those who lodge their payroll tax assessment annually, they can defer payment of their full 2020-21 payroll tax liability, which is usually payable in July 2021.
Six month waiver of payroll tax
Hospitality (cafes, pubs, hotels, clubs and restaurants), creative arts and entertainment industries will receive a one-off, six-month waiver of payroll tax from April to September 2020.
Businesses will need to complete a simple online application form to confirm their eligibility by visiting the ACT Revenue Office website (available soon) at: www.revenue.act.gov.au
For those who lodge their payroll tax assessment monthly, the first credit will be applied to the April payroll tax liability, which is usually payable by 7 May.
For those who lodge their payroll tax assessment annually, the credit will be applied to their account when their assessment is received at the end of the 2019-20 financial year.