Published on 02/12/2020 by Any Business.Com.Au

Has the State Budget Provided for Small Business?

The State Government has described its 2020-21 Budget as the one to repair, recover and make us stronger than ever before which sounds amazing in theory, but after a simply catastrophic year, small businesses could be forgiven for asking: "What's in it for us?".

In a roadmap that will see Victoria's Government spend $49 billion over four years and a goal to create 400,000 jobs by 2025, the 2020-21 State Budget boasts to be a new dawn for Victoria; one that is fuelled by local businesses, skilled workers and a new wave of large and small infrastructure projects.

So……what's in it for small businesses?

Payroll Tax Credit

The Payroll Tax Credit will provide $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.

Support for Hardest Hit Industries

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.

Ready for Growth Initiative

The $5 million Ready for Growth Initiative will also support at least 1,000 businesses with high-growth potential to reach new markets and create new jobs.

Under the initiative, businesses will be offered tailored services including masterclasses and personalised coaching in digital engagement to help them develop better products and services, build their workforce and compete in a globalised economy.

Mental Health and Wellbeing

The budget has also addressed the mental health impact on small businesses with a $26 million Wellbeing and Mental Health Support program to provide training for business chamber staff to then share with local businesses, as well as expand a support hotline service and pay for mental health professionals to be embedded in industry and business associations.

Small Business Support Toollkit

Around $6 million has gone towards a Small Business Support Toolkit that will fund best-practice workshops, mentoring and coaching services across the state, helping businesses to digitise and innovate, adapt to meet changing customer needs and navigate regulatory requirements across different levels of government.

Upskill My Business

Upskill My Business is providing free access to online short courses and training events, and the $10 million Business Recovery and Resilience Mentoring program is connecting small-business owners and sole traders with free business mentoring and advice.

Small Business Digital Adaptation Fund

The Victorian government has also established a $20 million Small Business Digital Adaptation Fund that is helping sole traders and micro and small businesses to build digital capability in their day-to-day operations.

Solar Panel Rebate

Small businesses will also have an opportunity to reduce their carbon footprint thanks to an additional $45.9 million which has been put forward to expand the solar panel rebate and loans scheme.

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AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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