Coronavirus: Victoria announces ‘biggest ever’ relief package

The Victorian government has announced a sweeping set of payroll tax relief measures to combat the economic impacts of coronavirus in what is the biggest business support package in the state’s history.

Victorian Premier Daniel Andrews and Victorian Treasurer Tim Pallas speak to the media on Saturday.

The Victorian government has announced a sweeping set of payroll tax relief measures to combat the economic impacts of coronavirus in what is the biggest business support package in the state’s history.

The state’s premier Daniel Andrews said $1.7 billion of “cash and support grants” would be made available to businesses to ensure they and their workers can “get to the other side of this crisis”.

“This is not a tax cut, this is not a loan, it is a refund back in the accounts of businesses in just a few days time, cash that will be critical to them being able to support their workers and in turn those workers being able to support their families,” Mr Andrews said.

The announcement came as 51 new cases of COVID-19 were positively tested overnight in Victoria, taking the state’s total to 229.

Mr Andrews said the tax relief package would include $500 million in payroll tax refunds for 24,000 Victorian businesses that employ around 400,000 people with a payroll of up to $3 million.

“Those 24,000 businesses have diligently paid their payroll tax since the 1 July last year, they will receive every dollar they have paid in payroll tax for the year to date back, and the final quarter, the final three months of this financial year will be waived. Not deferred, waived.”

An additional $500 million will be put into a fund to support sectors of the economy that are struggling, with “hardship payments” or small grants to be given in partnership with the Victorian Chamber of Commerce, the Australian Hotels Association and the Australian Industry Group.

“That will be about instilling confidence and providing cash to those businesses that need it most,” Mr Andrews said.

“You can try and stimulate and create new customers to businesses, I think that is incredibly difficult in such a time of upheaval, in such a time of crisis. The far better thing to do is to provide that cash that will tide them over, that will make it more likely that they can get through this crisis and be there at the other end of it.”

The third component of the package is more than $600 million for a range of different measures including waiving the liquor licensing fees paid by 12,500 venues across the state.

The Premier said the exemption for Crown Casino from previous social distancing measures had been revoked by the chief medical officer, meaning fewer patrons will be allowed entry and they will now need to stay four metres from one another.

He said health advice remains that schools should remain open, despite concerns of parents and families, one week out from that state’s school holidays.