VIC’s State Budget 2020/21
Victoria's budget to repair and recover from the COVID-19 pandemic
With the recent release of Victoria’s 2020/21 budget, it is clear that its priority is to repair, and recover from the damages of the COVID pandemic and make Victoria stronger by putting its people first. With the immense borrowing and spending the government has in place, most will benefit in the immediate future with the big losers being future taxpayers, electric car owners, and unsafe drivers.
Budget Highlights for Businesses:
- Net debt will reach $86.7 billion this year and grow to $154.8 billion by 2023-24.
- Job Seekers
$250 million will be spent on subsidising the wages of up to 10,000 new workers. $150 million of that will go towards employing women specifically, with a third of women placements to go towards women over the age of 45.
- Business Support Fund
$2.6 billion in grants have supported businesses in the hardest-hit sectors during the pandemic.
- Sole Trader Support Fund
$100 million to help sole traders in affected sectors.
- Taxes & Fees Relief
Over $1.8 billion in relief from taxes and fees, including a full refund and waiver of 2019-20 payroll tax for small and medium businesses, providing cashback in their bank accounts when they needed it most. This includes exempting businesses in Victoria participating in the JobKeeper program from payroll tax and WorkCover premiums on additional wages paid to staff who were stood down or earnt less than the JobKeeper payment.
- Freezing and Waiving Taxes and Charges
2020 and 2021 liquor licence fees have been waived, while the 2020-21 Fire Services Property Levy was frozen at the 2019-20 revenue target. Increases to the landfill levy have also been deferred.
- Payroll tax credits
$836 million in New jobs tax credits over the next two years for small and medium businesses who re-hire staff, restore hours and create new jobs.
- Increasing payroll tax thresholds
The threshold for paying payroll tax on an annual basis will increase from $40,000 to $100,000, reducing administration costs and providing $309 million of cash flow support to 7,000 businesses.
- Solar energy for businesses
Small businesses will now also be eligible for Solar Homes, with up to 15,000 rebates available to help reduce energy costs.
- Carbon Farming
$92 million over the life of the program for carbon farming on private and public land by incentivising the restoration of native vegetation and carbon plantings. This will also deliver jobs and improve productivity for farmers.