Businesses

Delay of Q4 commercial rates assessments

Issuing of 2019-20 Quarter 4 commercial general rates notices has been delayed by four weeks to provide cash flow support to businesses. These will be payable one month after the date of issue.

Due dates for 2020-21 instalments will be gradually transitioned back to the regular timing.

Payroll tax exemption of JobKeeper payments

Businesses are exempt from any payroll tax on wages subsidised by the Commonwealth JobKeeper payment scheme from 30 March 2020.

Payroll tax waiver

A six-month payroll tax waiver, from April to September 2020, is available for businesses whose operations are directly impacted by the prohibited activities list due to COVID-19.

To apply for a waiver, a Payroll tax waiver form needs to be completed.

If your application is approved, you will need to continue lodging returns as normal, however, no payment is required during the waiver period.

If you lodge annually, the waiver will be applied to your annual reconciliation return, which is due on 21 July 2020. The amount will be calculated at 25% of the total tax payable.

Property Investors

Rates Rebate

From 1 July 2020, a rates rebate of $150 will be applied to all residential properties in the ACT.

In addition, there will be no increase in the Fire and Emergency Services Levy; the amount will be frozen at the 2019-20 rate.

This assistance will be automatically applied to your 2020-21 rates account, so you do not need to apply.

Land tax credit

Landlords, who reduce rent on their privately rented properties by at least 25% due to COVID-19, may be eligible for a land tax credit to cover 50% of the rental reduction, up to a limit of $1,300 per quarter.

If your application is approved, the ACT Government will apply this contribution as a reduction to your land tax account.

To apply for a land tax credit a Land tax credit application form will need to be completed.

Commercial landlords

Commercial rates rebate

A rates rebate of $2,622 will be applied to commercial properties with an average unimproved value (single property or unit) of $2 million or below.

The rebate amount will be automatically applied against any outstanding charges on your account and rolled over to future rates charges.

Further assistance is available where rent has been reduced for tenants as a result of COVID-19 in accordance with the following categories:

Category 1

Businesses partially or not affected (no more than 30% reduction in business income).

Business tenants should continue to pay rent and no rental reduction assistance will be provided by the ACT Government.

Category 2

Businesses significantly affected (at least 30% reduction in business income) but still operating.

Landlords with business tenants in this category, can receive 25% of rent reduction provided to tenants as a rebate from the government, capped at the lower of $5,000 per quarter (or around $380 per week) or total quarterly rates.
Owner-operated properties can receive a rebate equal to 50% of their rates, capped at $5,000 per quarter (or around $380 per week).

Category 3

Businesses who have effectively shut-down operations (at least 80% reduction in business income).

Landlords with business tenants in this category, can receive 50% of rent reduction provided to tenants as a rebate from the government, capped at the lower of $8,000 per quarter (or around $615 per week) or total quarterly rates.
Owner-operated properties can receive a rebate equal to 80% of their rates, capped at $8,000 per quarter (or around $615 per week).