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Victorian budget released – what’s in it for small business?

Significant support has been provided to businesses, including providing grants to the industries hardest hit, cutting taxes and fees and providing additional support to help during the pandemic. This support includes:

  • $2.6 billion in grants from the Business Support Fund to support the hardest-hit sectors including hospitality, tourism, accommodation, creative industries, and retail.
  • More than $2 billion in tax deferrals, including allowing businesses with payrolls of up to $10 million to defer their 2020-21 payroll tax liabilities for up to 12 months. This represents a $1.7 billion cash flow boost to businesses in 2020-21.
  • More than $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 cash back 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 a number of 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.
  • The $100 million Sole Trader Support Fund to help sole traders in affected sectors.
  • $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 our farmers.

Payroll tax credits

This Budget builds on this record level of support, providing $836 million in New jobs tax credits for small and medium businesses who re-hire staff, restore hours and create new jobs.

This incentive means the more these businesses re-hire staff and employ new workers, the less payroll tax they’ll pay.

This tax relief measure will be available for two years, saving businesses a combined $836 million and helping to support an estimated 9,400 Victorians back into work.

Increasing payroll tax thresholds

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.

Solar Homes for small businesses

And for the very first time, small businesses will also be eligible for Solar Homes, with up to 15,000 rebates available to help reduce energy costs.

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RECEIVE GOVT GRANT OF $10K to $250K*.

Austrade Approved Business Events
AVAILABLE NOW APPLY BEFORE 30th MARCH 2021 (Condition apply)

  • ABF Events are approved and listed below have been certified by Austrade on the Schedule of Approved Business Events.
  • This allows exhibitors, sponsors, delegates and partners to participate in the Business Events Grant Program. Note event bookings need to be confirmed ASAP to participate in the grant program
  • The program provides 50% rebate (based on a minimum spend of $20k) for approved items including ABF event-media packages, exhibition stands, corporate function tables, delegate registrations.
  • Govt Grant applications are now open until the 30 March. Please contact ABF to discuss how we can assist, we have experts to assist grant applications.
  • Grant funding will cover up to 50% of eligible expenditure incurred in participating at pre-approved business-to-business events as buyers or sellers during the 2021 calendar year.  All grant applications must be submitted for approval via the following link: https://business.gov.au/grants-and-programs/business-events-grants
  • For further information please see this fact sheet.