Recently, the Tasmanian state government announced stimulus measures designed to assist businesses in crucial state-based industries who could be decimated by the COVID-19 pandemic.
These measures include interest-free loans, waived payroll tax liabilities and incentives to hire a new staff member.
Specifically, businesses in hospitality, tourism, seafood production and export sectors are directly targeted. Also, any other small business who is directly affected due to COVID-19 will get some payroll tax support.
Interest Free Business Loans for Small Business | Tasmania COVID-19 stimulus package
- – $20 million in loans to small businesses in the hospitality, tourism, seafood production, and exports sectors. The loans will be available to businesses with a turnover of less than $5 million to purchase equipment or restructuring business operations and will be interest free, for three years.
Payroll Tax Waivers Reduction | Tasmania COVID-19 stimulus package
- – Payroll tax liabilities will be waived for hospitality, tourism and seafood industry businesses for the last four months of 2019-20.
- – Other businesses with payrolls of up to $5 million will be able to apply, based on the impact of virus, to have their payroll tax waived for April to June 2020.
Improving Small Business Cash Flows |Tasmania COVID-19 stimulus package
- – To assist with small business cash flow, the Tasmanian Government will:
- – Pay bills sooner: unless otherwise required by contractual arrangements, payment terms by Government agencies will be reduced from 30 days to 14 days; and
- – Give small businesses more time to pay their bills: unless otherwise required by contractual arrangements, small businesses will be provided extended payment terms to Government from 30 days to 90 days.
Targeted Small Business Grants Program for Apprenticeships and Traineeships | Tasmania COVID-19 stimulus package
- – The targeted Small Business Grants Program provides a $5,000 grant for businesses that hire an apprentice or trainee in the tourism, hospitality, building and construction, and manufacturing industries. Funding for this measure has been brought forward.
Youth Employment Scheme | Tasmania COVID-19 stimulus package
- – The Scheme provides a payroll tax rebate for one year, to businesses that employ a young person aged 24 and under, between April and December 2020. Human Resource and Industrial Relations Assistance
- – $80,000 will be provided to the Tasmanian Chamber of Commerce and Industry (TCCI) to provide Human Resources and Industrial Relations assistance associated with the coronavirus to businesses.
Government Maintenance Program | Tasmania COVID-19 stimulus package
- – $50 million allocated to fast track maintenance on public buildings over the next 12 months. This will provide an injection into local trades around the state and continue to support confidence in local communities.