On Tuesday 24 November, Victorian Treasurer Tim Pallas handed down the 2020-2021 State Budget (the Budget).
The budget includes a range of concessions, subsidies and projects provided by the government in a bid to return hundreds of thousands of Victorians back to work and breathe life into the economy.
Payroll tax
The Government will increase the threshold for paying payroll tax on an annual basis rather than a monthly basis from $40 000 to $100 000, reducing administration costs for 7,000 businesses.
A tax credit will be introduced to provide incentive for small and medium businesses to rehire staff, restore hours or create new jobs. Businesses will get a tax credit of 10 cents per dollar that they increase taxable Victorian wages. This measure will last for two years and is expected to support almost 10,000 people return to work. For example, if a business increases its taxable wages by $100,000 in 2020-21 when compared to the prior year, it will benefit from an effective reduction in its payroll tax liability of $10,000.
Sick leave
The Government has announced a pilot program to introduce sick leave for casual workers in ‘priority industries’. The pilot is likely to provide up to five days paid sick leave at the national minimum wage for casual employees who work in certain industries.
Solar rebates
Small businesses will also be eligible for the Solar Homes program, with up to 15,000 rebates available to help reduce energy costs.
Stamp duty discount
To stimulate the property market, up to 50% of stamp duty will be waived on newly built or off-the-plan homes valued at up to $1 million for contracts entered into between 25 November 2020 and 30 June 2021. Existing home owners will also benefit and be eligible for a 25% waiver.
The budget announcement also confirmed that the previously announced 50% land transfer duty concession for commercial and industrial properties has been brought forward and applies to contracts entered from 1 January 2021 – rather than 1 July 2023.
A $500 million Homebuyer Fund will be launched to assist Victorians who do not have a 20% deposit to purchase a home. The fund will contribute to the purchase price in exchange for equity in the property.
Developing skills
The Budget contains further funding of over $250 million for individual support for those looking for work. This includes career counselling services and an extra 80,000 free TAFE courses linked to in-demand jobs.
Infrastructure projects
The Budget contains funding to redevelop and improve a number of building projects throughout the state. Almost $2 billion has been allocated to school infrastructure, more than $5 billion for new public housing and almost $1.5 billion to redevelop the Southbank Arts Precinct.
A further $2 billion has been provided to build new hospitals and upgrade existing ones.
Support for parents and families
The Budget will deliver free kinder for 2021 and support for more outside school hours care.
Get Active Kids Voucher Program will help children get involved in organised activities by providing $200 vouchers for sports equipment, uniforms or memberships.
The Budget includes a number of other measures including:
· $20 million for a trial of zero-emission buses
· $300 million to tackle mobile phone black spots
· $250 million to co-fund better broadband access in regional areas
· $2 billion “Breakthrough Victoria’ fund to support research and innovation
$121 million to meet growing demand for in-home delivery of health services such as dialysis, chemotherapy and palliative care
$2 billion to build new hospitals and upgrading existing ones including $120 million for regional health infrastructure projects
$1.6 billion investment to drive our State’s clean energy future, including energy efficiency upgrades for homes
· $65 million in a landmark new strategy for Victoria’s agricultural sector.
You can also view the Victorian Budget 20/21 website here: https://www.budget.vic.gov.au/
If you have any questions about the Victoria budget please do not hesitate to contact us.