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Published on 14 September 2020
As part of a $3 billion business support package, the Victorian Government has announced further coronavirus tax relief measures, including waiving of liquor licensing fees for 2021, deferral for 2020-21 payroll tax liabilities, and duty reductions for those buying commercial or industrial property in regional Victoria.
Waiver of 2021 liquor licensing fees
On 13 September 2020, the government announced it will waive liquor licence fees for 2021 for eligible businesses. This means eligible businesses will not have to pay their 2021 renewal fees.
Deferral for 2020-21 payroll tax liabilities
On 13 September 2020, the Victorian Government announced that employers with payrolls up to $10 million, based on their 2019-20 financial year returns, can defer their 2020-21 payroll tax liabilities until the 2021-22 financial year.
This means they can pay their 2020-21 payroll tax liabilities in four quarterly instalments in the 2021-22 financial year:
- Liabilities for July, August and September 2020 will be due on 7 September 2021.
- Liabilities for October, November and December 2020 will be due on 7 December 2021.
- Liabilities for January, February and March 2021 will be due on 7 March 2022.
- Liabilities for April, May and June 2021 will be due on 7 June 2022.
Membership of a payroll tax group is not considered in determining whether or not the member’s Victorian taxable wages for the 2019-20 financial year exceeded the $10 million threshold.
To be eligible for this deferral measure, an employer must lodge their:
- 2019-20 annual reconciliation return, and
- monthly payroll tax returns for the months of July 2020 through to June 2021.
Duty concession for commercial or industrial properties in regional Victoria
Following the recent Victorian bushfires, the Victorian Government passed legislation in April 2020 to bring forward the 50% stamp duty discount for contracts entered into on or after 27 January 2020 to buy commercial or industrial property in bushfire affected LGAs.
On 13 September 2020, the Victorian Government announced that the 50% stamp duty discount for commercial and industrial property across all of regional Victoria will be brought forward to 1 January 2021.
There is no limit to the number of times a person can claim this relief. To qualify, the dutiable property must be used solely or primarily for a qualifying commercial or industrial land use for a continuous period of at least 12 months, commencing in the two years following the date of transfer. Its status as commercial or industrial property is determined by reference to the land uses set out in the Australian Valuation Property Classification Codes.
25% waiver of 2020 congestion levy
On Thursday 10 September 2020, the Victorian Government announced a 25% waiver of 2020 congestion levy liabilities, with the due date for paying the balance of 2020 congestion levy liabilities extended until 31 March 2021.
Full waiver of 2021 Vacant Residential Land Tax
On Thursday 10 September 2020, the Victorian Government announced a full waiver of 2021 Vacant Residential Land Tax (VRLT) liabilities that would ordinarily apply to residential properties in Melbourne’s inner and middle suburbs that are vacant for more than six months in 2020. With travel restrictions in place and property inspections currently restricted, many properties that would otherwise be occupied are vacant.
Further information about these latest relief measures will be available soon on our coronavirus page, which details all coronavirus relief measures we are administering.