24th May 2021 | Tax
Small business has been supported by the Victorian government’s post-pandemic budget for 2021–22, outlining new tax relief measures to aid recovery.
The payroll tax-free threshold will increase to $700,000 from $650,000, which will reduce tax for around 42,000 Victorian businesses.
In regional Victoria, the payroll tax will be reduced to 1.2 per cent, down from 2.02 per cent, kicking in from 1 July, to assist about 4,000 businesses.
Victorian Treasurer Tim Pallas prioritised the funding for those who copped it worst in an unprecedented year of challenges.
“We’re focused on helping those who need it the most — vulnerable Victorians, struggling small businesses, job seekers and families,” Mr Pallas said.
Small business wage subsidies will be continued through the government’s $619 million Jobs for Victoria program.
Jobs for Victoria
For eligible businesses, the initiative provides wage subsidies of up to $20,000, if they hire job seekers, to be used towards the costs involved to take on new employees for the first year of employment.
The Treasurer said the program has already helped businesses employ at least 10,000 workers, with the assistance of $250 million in subsidies.
“This year’s budget builds on that work, supporting an average of 38,000 jobs each year over the next four years,” Mr Pallas said.
New Jobs Tax Credit
The New Jobs Tax Credit established last year will be continued, helping eligible small and medium businesses rehire staff and create new jobs to ramp up business recovery with a tax credit of 10 cents for every dollar spent in increased wages.
For business events, the Victorian budget has allocated $43 million to improve and boost corporate events in the state.
There is $10 million set aside for the establishment of a new Distillery Door Grant scheme to provide funding to Victorian distillers who attract tourists and create jobs through their “distillery” door operations.
Melbourne’s economically battered CBD will get a government spend of $107 million to bring people back to the city so it can flourish again, after months of suffering from severe lockdown and shutdown through the coronavirus pandemic.
It includes $7.4 million for a new voucher scheme for visitors to use in the city’s cafés and restaurants.
There is also the $100 million Melbourne City Recovery Fund, a joint funding initiative between the state government and the City of Melbourne.
Skills and training
For skills and training, the budget spending is $384 million to equip business with the required skills.
Of this amount, $86 million will go towards a new Victorian Skills Authority to bring together industry, providers and other stakeholders so they can prioritise training areas and to create an annual Victorian Skills Plan.
The TAFE and training sector will be funded $209 million for the creation of 12,200 extra subsidised training places.
Finally, the creative sector hasn’t been forgotten.
Melbourne’s reputation as Australia’s cultural capital has been given a boost, with $288 million to help the state’s creative and cultural sectors, with artists and creatives among the worst affected by the impacts of the pandemic.
It includes $121 million for the Victorian screen industry to create jobs, showcase cultural events and invest in creative talent.
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