This page offers an overview of tax developments in response to the Novel Coronavirus (COVID-19).
The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
Tax relief measures
- The tax relief measures include tax-free withdrawals from superannuation funds. The package includes one-off stimulus payments to individual taxpayers, to be made through the social security system.
- For businesses and non-profits, there are to be tax-free payments made to certain employers (to support small and medium-size businesses). The payment would be delivered as a credit in the business activity statement system.
- To accelerate business investment, the tax depreciation write-off rules are significantly expanded with an increased instant asset write-off for immediate deductions of certain asset purchases and a 50% accelerated depreciation deduction in addition to the existing depreciation deduction for certain eligible asset purchases.
- Subject to certain conditions, cash-flow boosts will be automatically credited for those employers who filed their 2018-19 income tax return of activity statement prior to 12 March 2020.
- Businesses can claim an immediate deduction for multiple assets, new or second-hand, provided each asset costs less than AU$150,000. From 12 March 2020 until the end of 2020, the instant asset write-off threshold amount is AU$150,000 (up from AU$30,000); and eligibility has been expanded to businesses with an aggregated turnover of less than AU$500 million (up from AU$50 million).
- The “backing business investment” initiative allows eligible businesses to accelerate their depreciation deductions on the purchase of certain new depreciating assets. A business is eligible for accelerated depreciation when the business has an aggregated turnover of less than AU$500 million; the asset is a new depreciating asset acquired and first used, or installed ready for a business use, from 12 March 2020 until 30 June 2021; and the business did not already apply other depreciation deductions or the instant asset write-off.
Payroll Tax
- Tasmania announced a waiver of payroll tax for the last four months of this financial year for hospitality, tourism and seafood industry businesses; a waiver of payroll tax payments for the remaining three months from March to June 2020 for other small to medium businesses with an annual payroll of up to AU$5 million in Australian wages based on the immediate impact of the virus on their businesses.
- New South Wales announced AU$450 million for the waiver of payroll tax for businesses with payrolls of up to AU$10 million for three months (the rest of 2019-20), with a deferral available for larger businesses; and AU$56 million to bring forward the next round of payroll tax cuts by raising the threshold limit to AU$1 million in 2020-21.
- Queensland announced that small and medium Queensland businesses affected by the coronavirus outbreak can defer their payroll tax payment for six months under a new deferral measure, with refunds and waivers also available depending on the size of the business.
- Western Australia announced that Small businesses that pay payroll tax will receive a one-off grant of AU$17,500; AU$1 million payroll tax threshold brought forward by six months to July 1, 2020; and payroll tax will be waived for a four-month period between March 1, 2020 to June 30, 2020 for small-to-medium sized businesses.
- Victoria announced that businesses with annual taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived. This has been further extended under Stage 4 restrictions.
- South Australia has also announced a payroll tax waiver for SMEs.
