Details of both stimulus packages
The package offers both relief in deferred payments as well as grants offered to businesses to assist with the
economic impact of COVID-19..
There were, in fact, two stimulus packages announced. The first is worth $607m and the second worth $1bn.
First package:
- $114m dedicated to supporting SMEs
- Small businesses that pay payroll tax will receive a one-off grant of $17,500
- $1m payroll tax threshold brought forward to 1 July 2020
- Payroll tax payments can be deferred until July 21, 2020, for businesses impacted by COVID-19
Second package:
- No disconnections for power and water
- $502m dedicated to SMEs including a reduction in electricity bills, license fees waived, and additional payroll tax reliefs
- Electricity bills for small businesses will be reduced, with a one-off $2,500 credit available for Synergy and Horizon Power customers that consume less than 50 MWh per annum
- Payroll tax waived for a four-month period between 1 March to 30 Jun 2020 for SMEs with annual wages of less than $7.5m in 2019-20
- $100.4m worth of licence fees waived for SMEs for the next 12 months
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One-Off Grants to Small Businesses
Western Australian businesses with Australian taxable wages between $1m and $4m are eligible for a one-off cash grant of $17,500.
Group employers are only able to apply for one payment. The grant is expected to be paid in the form of a cheque in July 2020.
Revenue Online WA has requested that all eligible taxpayers review their business postal address and ensure it is up to date.
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Deferral of Payroll Tax payments
Payroll tax payments for SMEs will be deferred from March 2020 to June 2020.
Deferrals are not automatic. Applications will need to be made via online and granted by the Commission of State Revenue.
Considerations for eligibility include:
- The business has Australian taxable wages of $7.5m or less (including groups), and
- Can demonstrate that COVID-19 has directly or indirectly affected turnover, profit, customers, booking or supply contracts
Upon approval of the application, payments will be deferred for the four months. Regardless of the application outcome, businesses are still required to lodge by the due date, and all payments are required to be made by 21 July 2020.
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Increased Payroll Tax Threshold brought forward
The payroll tax threshold has been moved forward.
The previous payroll tax threshold increase from $950,000 to $1m was due to be applied from 1 January 2021. Instead, this will now apply from 1 July 2020.
If your business falls below the threshold from 1 July 2020, you may be able to cancel your registration - six months earlier than expected.
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