Additional tax relief support announced for Victorian businesses

As Victoria’s lockdown continues, the State Government has recognised that further support is needed for Victorian businesses. Below is a summary of the various tax relief and grants announced.

Vacant Residential Land Tax Relief (VRLT)

VRLT is annual tax of 1% of the council capital improved value and it applies to residential land in specified council areas in inner and middle Melbourne that has been vacant for more than 6 months in the previous year.

Due to the travel restrictions arising from the coronavirus pandemic, property inspections are no longer possible which has resulted in a significant rise in vacant properties that would otherwise be occupied. As a result, the government has announced that taxpayers that own vacant residential land will receive a complete waiver of the 2021 VRLT. The waiver applies to properties that are:

• Residential
• Located in inner and middle Melbourne suburbs and
• Vacant for more than six months in 2020.

The waiver of the Vacant Residential Land Tax does not waive a property owner’s ordinary land tax liability.

Payroll tax

Eligible businesses with a payroll of up to $10 million will receive a full deferral for the 2020-21 financial year.

Congestion Levy

Car park owners will receive a 25% waiver of the congestion levy for 2020 and outstanding balances can be deferred until next year.

Stamp duty

50% stamp duty discount brought forward to 1 January 2021 for industrial and commercial property in regional Victoria. The concession applies to acquisitions of land in prescribed local government areas located in regional Victoria. The land must be used for qualifying use (based on land use codes) for a continuous period of at least 12 months commencing within two years from the date of obtaining use to the land.

Business Grants

Small and medium sized business

Eligible businesses with payroll up to $10 million will receive grants of $10,000, $15,000 or $20,000 depending on the size of the business.

Licenced Hospitality Business

Licensed pubs, hotels, bars, clubs, reception centres and restaurants to receive grants between $10,000 and $30,000 dependent upon location and capacity. Further, the Victorian government will waive all liquor licence fees for 2021.

Alpine businesses

Grants up to $20,000 for all Alpine businesses to assist businesses to pay their resort fees.

Business Chambers and Trade Groups

Grants program established to assist regional and metropolitan business chambers and trader groups.

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