JHL Accounting understands the challenges that you and your business will no doubt be experiencing during the COVID-19 crisis.
I am here to help you through the coming weeks and months to ensure that you and your business maximise the Federal and State Government Coronavirus stimulus packages available as well as assisting you with your regular accounting and income tax obligations.
There is an overwhelming amount of information coming out of both the Federal and State Governments in support of assisting business in this time.
The Victorian State Government has established a $1.7 billion Economic Survival Package. This is in addition to the Federal Government response to the Coronavirus. Previously, I had advised of the Payroll Tax relief that was offered by the State Revenue Office (SRO), but the following measures highlight the additional relief that Victorian taxpayers can also access:
Victorian Business Support Fund
For payroll taxpayers who may not have been eligible to access the payroll tax refund due to their size, funding of $10,000 pe eligible business has now been made available.
Small businesses are eligible if they:
- employ staff
- have been subject to closure or are highly impacted by Victoria’s ‘Non-Essential Activity Directions’ issued by the Deputy Chief Health Officer to-date
- have a turnover of more than $75,000
- have payroll of less than $650,000
- hold an Australian Business Number (ABN) and held that ABN at 16 March 2020
- has been actively engaged in carrying on a business in Victoria on 16 March 2020.
Evidence and compliance
To meet the eligibility criteria applications must be made in writing. All applicants will be subject to an audit by the Victorian Government and will be required to produce evidence such as payroll and profit and loss reports to demonstrate impact. Your records must be made available for a period of up to four years after the grant has been approved.
The grant will be repayable on demand If any information in the application is found to be false or misleading.
Intention of how the funds will be made use of will be required and can include the following:
- Meeting business costs, including utilities, salaries or rent
- Growing and promoting the business through marketing and communications
- Seeking financial, legal or other professional advice to support business continuity
- Other supporting activities related to the operation of the business.
To apply for the Victorian Business Support fund, applicants will need to list the following:
- total number of employees; and
- the Fulltime equivalent (FTE) hours that this represents.
An FTE is based on a 35 hour or more work hours per week (e.g. 2 full-time staff working more than 35 hours and 2 part-time staff working 18 hours is 3 FTE).
You will also need to have your most recent Business Activity Statement ready for the application process.
Please contact me if you require assistance in the application process.
Land Tax deferral
Eligible landowners have the option of deferring their 2020 land tax payment until after 31 December 2020. To be eligible for this measure, landowners must have at least one non-residential property and the total taxable landholdings must be below $1 million.
The State Revenue Office will contact all taxpayers who are eligible for this deferral.
If you have any questions regarding the Victorian Business Support Fund please contact JHL Accounting.