Small Business Fund Expanded
In early April the Victorian Government announced a $500 million Business Support Fund to support small to medium sized businesses most impacted by the ‘COVID-19 Stay at Home Directions’ order under the Department of Health and Human Services Victoria. JHL Accounting outlined the details of the Support Fund here.
To date, more than $150 million has been paid to business sectors such as retail, tourism, hospitality, accommodation and the arts.
The Victorian Government has expanded the criteria to businesses participating in the Commonwealth JobKeeper scheme, regardless of the sector in which they operate.
The only exclusions relate to sole-traders.
Under the expanded rules small businesses are eligible if they:
- employ staff; and
- 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; and
- have a turnover of more than $75,000; and
- have payroll of less than $650,000; and
- hold an Australian Business Number (ABN) and held that ABN at 16 March 2020; and
- have been actively engaged in carrying on a business in Victoria on 16 March 2020.
Businesses that were previously declined for the initial Business Support Fund will be contacted by the Department of Health and Human Services Victoria and do not have to submit a new application.
Land Tax Relief
Land Tax Relief is now available to eligible landlords impacted by COVID-19. If you provide rent relief to your tenant or you are unable to secure a tenant, you may be able to claim a 25% reduction on your 2020 land tax bill. You also have the option of deferring your remaining 2020 land tax to 31 March 2021. To qualify you need to satisfy the following:
Property not rented
- The property must be available for rent.
- You are unable to find a tenant due to COVID-19.
- Your tenant is unable to pay their normal rent due to COVID-19.
- For commercial tenants they must be:
- a small or medium business with a turnover up to $50 million.
- be eligible to receive JobKeeper.
- You and your tenant have agreed to a rent reduction.
- The rent reduction must be equivalent to at least 25% of your 2020 land tax.
Please refer to the State Revenue Office for more information and application instructions.
If you have any questions regarding the Coronavirus Stimulus Package please contact JHL Accounting.