Qualified businesses can receive at least $2,000 to help support employment and "improve business confidence," and those including social security recipients, veterans and other income-assisted taxpayers can receive up to a $750 one-off, tax-free payment, Australia's Department of Treasury said in a statement released Thursday. The government will also provide "administrative relief" to certain taxpayers on a case-by-case basis, according to the statement.
The package will move expeditiously through the Parliament in the hope that it is signed into law before the end of March, the Australian government said.
The Australian Taxation Office also announced Thursday it will defer for at least four months business tax payments, and allow businesses that report gross sales tax payments quarterly to opt in to a monthly reporting schedule that could accelerate access to their GST refunds, according to the office.
"Once you contact us, we'll tailor a support plan for your needs and circumstances," Taxation Commissioner Chris Jordan said in a statement. "Support measures could include deferral of some payments, quicker access to GST refunds and options to enter low-interest payment plans for existing or future tax debts."
Any penalties assessed on tax liabilities after Jan. 23 will also be remitted, according to the ATO.
Australia's announcement follows several other countries that have offered tax relief measures to employers and residents in the wake of coronavirus, also known as COVID-19. Denmark, for example, extended filing deadlines for business and income taxes. In addition, the European Union's competition chief, Margrethe Vestager, has said that countries can suspend the requirement for companies to pay corporate tax without seeking bloc approval for offering state aid to help mitigate the economic effects of the coronavirus.
A number of EU countries have already announced tax holidays for companies hurt by coronavirus. Italy, which has been hit hardest, was the first to do so at the beginning of March, announcing tax credits for companies that report a 25% drop in revenue, as well as a series of tax cuts. The country has also closed its tax administration until further notice, suspending collection of VAT and other tax payments for businesses.
The largest economy, Germany, has also introduced temporary tax measures including the lowering of VAT rates. France has suspended collection of tax payments for March.
The ATO and Treasury could not be immediately reached for further comment.
--Additional reporting by Matt Thompson and Eli Flesch. Editing by Vincent Sherry.
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