Hon. Colin Tincknell asks about COVID-19 relief for small businesses below the payroll tax threshold and clarification on eligibility for payroll tax deferral. The Treasurer outlines the broader economic response and eligibility criteria for deferral.

AnsweredQoN 216Legislative Council
Asked
17 March 2020
Portfolio
minister representing the Treasurer

QuestionView source ↗

CORONAVIRUS —
SMALL BUSINESS — PAYROLL TAX THRESHOLD
216. Hon COLIN TINCKNELL to the minister representing the
Treasurer:
(1) Can the
minister outline what relief is being provided to those small to medium
businesses that do not meet the current payroll tax threshold of $950 000, many
of whom are independent sole traders and contractors and mum-and-dad businesses
that are engaged in many industries across Western Australia?
(2) As the
government has offered a three-week payroll tax deference for those businesses
impacted by COVID-19, can the minister
inform me what constitutes ''impacted''; will a member of staff
have to be sick or will businesses be able to show hardship or
significant downturn in order to claim; and what constitutes a business that is
impacted by COVID-19 in order for it to defer its tax payments to 21 July 2020?

AnswerView source ↗

I thank the honourable member for
some notice of the question.
(1) The government's $607 million COVID-19
economic response will inject cash into the Western Australian community
for the broader benefit of all Western Australians. The government is not able
to use the payroll tax system to provide assistance to businesses that do not
pay payroll tax. Nonetheless, the government is looking at other potential
options for providing support to these businesses.
(2) Small to medium businesses can apply to defer
payment of their remaining 2019–20 liability to 21 July 2020 if their
current turnover, profit, customers, bookings, retail sales, supply contracts
or other factors, compared with normal operating conditions, have been
directly or indirectly affected by COVID-19. Businesses need to submit an
application form available on the www.wa.gov.au website, which includes a section
in which businesses are asked to briefly summarise how their business has been
affected. The Department of Finance will then assess eligibility on a case-by-case
basis.

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