SUPPORT FOR BUSINESSES AND THE ECONOMY

Fee and tax relief

Government fees and charges

The Government is freezing all fees and charges subject to the Fee Units Act 1997. For 2020-21 the Fee Unit rate will be the same as in 2019-20. Accordingly, all fees and charges which are based on Fee Units will be frozen for 2020-21. The estimated cost in revenue foregone is approximately $430,000.

Payroll tax

As at 31 July 2020:

• 354 applications had been approved by the State Revenue Office for the 2019-20 payroll tax waiver for Tasmanian employers with wages of up to $5 million, with a total refund of approximately $12.5 million paid to date;
• 55 applications had been approved by the State Revenue Office for the 2019-20 payroll tax waiver for Tasmanian hospitality, tourism, and seafood industry employers, with a total refund of approximately $13.1 million paid to date;
• there are 16 registrants for the payroll tax rebate for wages for employees aged between 15 and 24 who commence between 1 April 2020 and 31 December 2020; and
• the Government has waived payroll tax due on wages attributable to the JobKeeper payments, commencing from 30 March 2020. The Tasmanian Government will continue to provide its waiver until JobKeeper payments cease on 28 March 2021.

Land tax

The Government is waiving land tax for 2020-21 for commercial property owners that have been adversely financially impacted by COVID-19. The actual reduction in revenue will be identified when land tax assessment notices are calculated throughout the 2020‑21 financial year with an estimate of up to $43 million.

As at 31 July 2020, 416 applications for deferral of land tax due to financial hardship have been received, all of which had been processed. Deferrals ceased on 30 June 2020.

The Government has also waived land tax in 2019-20 for taxpayers that have a land tax liability of less than $150. It is estimated that this will assist 3,332 taxpayers to a value of $338,226.

Motor tax and vehicle registration

The Government is waiving the roads component of motor tax and vehicle registration fees where a business has been significantly impacted by measures taken to manage COVID-19. Businesses looking to suspend trade or that are experiencing significant trading restrictions due to the COVID-19 pandemic can access the Business Vehicle Registration Relief Package. For heavy vehicles, busineses can apply to freeze or extend for 12 months and for light vehicles businesses can apply to freeze vehicle registration.

As at 13 July 2020:

• 135 businesses have applied for heavy vehicle registration extensions and 633 vehicles have been processed.
• 298 businesses have applied for light and/or heavy vehicle fee relief and 2,307 vehicles have been processed.

Registrations can be reactivated at no cost to the business when it restarts.

For heavy vehicles (over 4.5 tonnes) the Government will waive fees for registration and the road component of motor tax for 12 months. Operators will still need to pay the regulatory component of motor tax which goes to fund the operations of the National Heavy Vehicle Regulator.

Liquor and gaming licences and permits

The Government is waiving fees associated with liquor and gaming licences and permits to assist businesses. As at 31 July 2020, 1,110 applications for liquor licences and permit refunds have been processed, resulting in refunds of $515,801; and 284 special permits have been issued at no cost, saving permit applicants $64,039. As at 31 July 2020, fee waivers in relation to gaming have amounted to $1,438,734.

Taxi licence fees

The Government has waived annual taxi licence fees for the calendar year 2020 at a cost of $240,000. As at 31 July 2020, refunds have been paid for 282 licence fees with a total value of $184,880. Four licence fees remain eligible for a refund with a total value of $2,828.

In addition, a number of additional taxi support initiatives have been adopted by the Government, including Taxi free rebateswhich has seen administration fees contained in the Taxi and Hire Vehicle Industries Act 2003 waived and not payable for 2020. Refunds of fees already paid are being progressed.

The Taxi Industry registration relieffor vehicle registration falling between 1 March and 30 September 2020 means taxi operators can either 1) continue operating a vehicle or apply to have their vehicle registration extended for a 12 month period, at no charge or 2) ‘pause’ the registration of their taxi and later reinstate the registration at no cost, with the ‘paused’ period being added to the reinstated registration period. Taxis will not be required to pay Public Passenger Vehicle safety inspection (around $130).

Rent relief

Government leases

For Government leased property (to private/commercial tenants) the Government has waived rents for a period of six months from 1 March 2020. The rent waiver is expected to provide rent relief to the value of approximately $4.8-$5 million.

As at 30 June 2020, agencies advised that advice has been provided to 1,039 lease holders, with refunds for rent already paid across the State.

Code of Conduct for commercial tenancies

On 13 May 2020, the COVID-19 Disease Emergency (Commercial Leases) Act 2020 received Royal Assent. The Act gives effect to the Code of Conduct for commercial tenancies agreed upon by National Cabinet on 7 April 2020.

The purpose of the Code is to govern the conduct of commercial tenants and landlords, and provide additional protections and rent reductions for tenants experiencing financial hardship. Measures include:

• the protection of commercial leases for eligible tenants (a tenant who is eligible for the JobKeeper program and has a turnover of less than $50 million per annum);
• a freeze on rent increases (a lessor must not, unless agreed by the lessee, increase rent for a protected lease during the financial hardship period);
• rent reductions (the lessor must provide the lessee of a protected lease a reduction in rent in line with the provisions provided in the Code); and
• the establishment of mediation services and a Code Administration Committee to support the Code.

As at 31 July 2020, the Department of Justice had received:

• 106 commercial lease enquiries;
• 10 applications for mediation (tenant as applicant); and
• 4 applications for mediation (landlord as applicant).

Rebate on rent for early education and care providers

The Government has waived, for the six months from March to August 2020, 81 rent agreements for Early Education and Care (ECEC) providers co-located with Schools and Child and Family Centres. These rent agreements total $205,740, of which $25,675 has been refunded for payments made by ECEC providers.

A further 35 rental agreements totalling $140,105, held with other eligible Tasmanian businesses through schools and non school areas have been waived with $17,830 refunded.

The total amount waived as at 31 July 2020 is $345,845. The total amount refunded is $43,505.