The Victorian COVID Debt Recovery Plan “levy”

By Warren Strybosch

The COVID-19 pandemic has brought about unprecedented economic challenges globally, with governments around the world implementing various measures to mitigate its impact. One such measure that has been proposed in some countries is the COVID Debt Recovery Plan "levy." This levy is intended to help recover the significant debts accumulated during the pandemic and support economic recovery in the aftermath.

The COVID Debt Recovery Plan levy is a financial mechanism whereby a specific percentage or amount is imposed on certain individuals, households, or businesses to contribute towards repaying the debts incurred due to the pandemic. The idea behind this levy is to distribute the burden of debt repayment more equitably and ensure that those who have the means to contribute bear a fair share of the recovery costs.

With the increasing Victorian debt, the Labor government, in a bid to find ways to raise further revenue, have decided to source additional revenue via their so called, Covid Debt Recovery Plan, by taxing large businesses and those with additional land as follows:

• From 1 July 2023, large businesses with national payrolls above $10m a year will temporarily pay additional payroll tax. A rate of 0.5% will apply for businesses with national payrolls above $10m, and businesses with national payrolls above $100m will pay an additional 0.5%. The additional rates will be paid on the Victorian share of wages above the relevant threshold and are estimated to raise $3.9 billion to repay COVID Debt over four years.

• From 1 January 2024, the tax-free threshold for general land tax rates will temporarily decrease from $300,000 to $50,000. The family home will remain exempt from land tax. Those who pay land tax will attract a temporary additional fixed charge starting at $500 for landholdings between $50,000 and $100,000.

There will be a $975 fixed charge for landholdings above $100,000 and the tax rates will temporarily increase by 0.1 per cent for both general and trust taxpayers with holdings above $300,000 and $250,000 respectively.

These changes are estimated to raise $4.7 billion to repay COVID debt over four years.

Proponents of the COVID Debt Recovery Plan levy argue that it promotes fiscal responsibility and helps avoid longterm economic instability. By sharing the burden of debt recovery across the population, it reduces the strain on government finances and prevents excessive borrowing, which could lead to inflation or increased taxes in the future.

Additionally, it ensures that those who have profited or remained financially stable during the pandemic contribute their fair share towards rebuilding the economy.

However, critics of the levy express concerns about its potential negative impact on already struggling individuals and businesses.

They argue that imposing additional financial obligations could hinder economic recovery by reducing consumer spending and stifling business growth.

Let’s face it. The Victorian government is nearly at a crisis point regarding their current debt levels. They know they must find more ways to increase revenue and so it makes sense to them to introduce a ‘levy’ and target big business and those more fortunate than us to cover the bill.

OCCUPATIONAL HEALTH & SAFETY

By Mark Felton

As a business owner and employer, it is your responsibility to ensure the health safety of your employees within your workplace. This includes providing your team with a safe work environment and protection from hazards. You can achieve this by understanding your obligations under the Occupational Health and Safety (OHS) laws and by complying with them. WorkCover Victoria will investigate instances where an employer is not meeting their obligations and will prosecute and fine that employer.

WorkCover Victoria recently reported that an aluminium window and door manufacturer has been fined $70,000 after a worker had four fingers amputated while operating a saw at a Bayswater North factory.

Accent Management Services Pty Ltd was sentenced in the Ringwood Magistrates’ Court in May this year after pleading guilty to a single charge of failing to provide or maintain a safe working environment. The company was fined, without conviction, and also ordered to pay $4,236 in costs.

In November 2020, the worker was using an electric mitre saw to cut lengths of aluminium, which he held steady by hand. After making a cut, the worker began lifting the saw with his right hand, but not enough for the retractable guard to have moved fully back over the rotating blade. As the worker simultaneously reached underneath the saw with his left hand, he made contact with the rotating blade, amputating four fingers.

The injured worker was taken to hospital where all but one of his amputated fingers were reattached.

A WorkSafe investigation found that although the saw was fitted with a pneumatic clamping system to hold aluminium sheets and reduce the risk of bodily contact with the blade, it had become common practice for workers not to use the clamps when making 90-degree cuts.

The court heard it was reasonably practicable for the company to have provided a system of work that required workers to use the pneumatic clamps and timber shims to secure the sheets for all cuts of aluminium when using the saw, and to provide instruction and training to workers on the use of the clamps and shims.