Fill 70 4203B747-A5A2-4275-9F96-38E6851BE1BD Created with sketchtool. check check image/svg+xml CD0C9D5F-2558-443A-AD03-5A2F8700B292 Created with sketchtool. configuration image/svg+xml FE9604CC-D439-4D7C-AEB5-A81CBFFB16FE Created with sketchtool. Facebook Fill 44 Google+ 5A344CE4-3E88-4357-B768-280D04897943 Created with sketchtool. LinkedIn newdownload OnDeck Fill 199 percentage % BF59B24C-7DA4-41B0-87D4-01ED3734209F Created with sketchtool. 0DF0E730-80C5-4D3F-BD60-C7145885A66F Created with sketchtool. share with email share on facebook share on linkedin share on twitter Twitter Bi-directional arrow user Fill 83 Group 62693C83-537A-4833-ACB4-3A51525E6280

2021-21 Victorian State Budget commits to jobs-led recovery

by OnDeck Australia,   Nov 27, 2020

 

The Victorian Government this week unveiled their 2020/21 Budget that will encourage the state’s small business sector to play a significant role in a jobs-led recovery from the pandemic.

 

Headlining the announcements, the government has pledged $1.5 billion in new tax relief for businesses. This funding builds on the Victorian Government’s existing support that tallies more than $3.5 billion in tax and fees relief to workers, businesses and households to help them recover.

 

Here’s what’s in store for Victoria’s small business community, in addition to the Federal Budget announced last month.

 

1.

Support for SMEs with plans for hiring staff

The tax relief includes the New Jobs Tax Credit, which supports small and medium businesses that rehire staff, restore hours or create new jobs.

 

Under the plan, these businesses will receive a tax credit of ten cents for every dollar it increases taxable Victorian wages – giving businesses the confidence they need to open their doors, hire more staff and recover from the pandemic.

 

This incentive means the more these businesses re-hire staff and employ new workers, the less payroll tax they’ll have to pay. This emergency tax relief measure will be available for two years, saving businesses a combined $836 million and should help to support an estimated 9,400 people back into employment[i].

2.

More payroll tax relief

The New Jobs Tax Credit will be additional to the more than $1 billion in payroll tax refunds and waivers the state government has provided since the pandemic began in March.

 

This ongoing support includes allowing small and medium businesses to defer their 2020-21 payroll tax until next financial year, providing a $1.7 billion boost for businesses.

 

The Government will also increase the threshold for paying payroll tax on an annual basis from $40,000 to $100,000, reducing administration costs and providing $309 million of cash flow support to 7,000 businesses[ii].

3.

Stamp duty waiver

In support of the residential construction industry, there will be a stamp duty concession of up to 50% for homes valued up to $1 million for contracts entered into from 25 November 2020 to 30 June 2021. Relief will be targeted at newly built or “off-the-plan” homes, which will receive the full 50% waiver. Existing homes will be eligible for a 25% waiver.

 

Further, in a bid to lure businesses to regional Victoria, a 50% stamp duty concession on the purchase of commercial and industrial properties will be brought forward to January 2021 – encouraging more businesses to open, relocate or expand, and help hard-hit regional economies to bounce back. This investment will save businesses a further $39.6 million[i].

 

Meanwhile, payroll tax in regional Victoria is already dropping to 25 per cent or less than half the metropolitan rate – the lowest anywhere in Australia.

4.

Support for hard hit industries

The government has pledged $2.6 billion in grants from the Business Support Fund to help the hardest-hit sectors including hospitality, tourism, accommodation, creative industries, and retail[ii].

 

The 2020 and 2021 liquor licence fees have also been waived, while the 2020-21 Fire Services Property Levy was frozen at the 2019-20 revenue target.

5.

Technology support for SMEs with growth potential

As part of the 2020/21 Budget, the government promised to finance more tools to help SMEs adapt and adopt new digital technology. The $6 million Small Business Support Toolkit will fund best-practice workshops, mentoring and coaching services across the state. The goal is to assist businesses to digitise and innovate, adapt to meet changing customer needs and navigate regulatory requirements across different levels of government[iii].

 

At least 1,000 businesses with high-growth potential will benefit from the $5 million Ready for Growth Initiative. These businesses will be offered tailored services including masterclasses and personalised coaching in digital engagement. The aim of the initiative is to assist these businesses develop better products and services, build their workforce and compete in a globalised economy.

 

Ready for Growth is additional to Upskill My Business, which is providing free access to online short courses and training events, and the $10 million Business Recovery and Resilience Mentoring program that  is connecting  SME owners and sole traders with free business mentoring and advice. In a similar vein, the $20 million Small Business Digital Adaptation Fund is helping sole traders and micro and small businesses to build digital capability in their day-to-day operations.

 

 

Victorian Minister for Small Business Jaala Pulford, said that latest budget is backing “our small businesses to recover stronger than ever, working shoulder-to-shoulder and providing practical support.

 

“Small businesses have shown amazing determination and grit during the pandemic and they’ll be a crucial part in getting more Victorians back to work and our state’s economy back on track.”

 

She added, “We want to help our small businesses develop new skills, find new markets and create new jobs.”

 

Since March, the Victorian Government has committed more than $13 billion towards measures to fight coronavirus (COVID-19), including more than $7 billion in direct economic support for Victorian businesses and workers[iii].

 

Get in touch today to find out about OnDeck’s funding options that could support with finance for your SME’s recovery planning.

 

 

 

 

[i] https://www.premier.vic.gov.au/giving-business-tax-break-create-jobs

[ii] https://www.budget.vic.gov.au/support-victorian-businesses

[iii] https://www.premier.vic.gov.au/helping-small-business-recover-and-grow-create-jobs

 

________________________

 

Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at 27 November 2020. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.

 

 

Get Started