The NSW State Budget has been delivered for 2020-21, and is designed to support the next phase of our State’s recovery. Here’s what you need to know:
Payroll Tax Thresholds and Cuts
The payroll tax threshold will permanently increase from $1 million to $1.2 million, with the rate of payroll tax lowered from 5.45% to 4.85% from 1 July 2020 to 30 June 2022
The $250 million Jobs Plus program allows a four year payroll tax-free period for businesses that create at least 30 new net jobs, and will support companies who want to relocate their head offices to NSW or expand their jobs footprint in NSW
$25 Vouchers for Food and Entertainment
Every NSW adult will receive $100 in e-vouchers (4*$25) to spend at selected COVID-19 safe hospitality and entertainment venues including restaurants, visitor sites and cultural attractions
Two vouchers can be used for eating in venues and 2 for entertainment & recreation (and none on alcohol, tobacco or gambling!)
This Out and About voucher scheme is designed to get residents spending in key parts of the economy that are struggling
Fee Relief for SMEs
SMEs that do not pay payroll tax will receive a $1,500 e-voucher to use against the cost of NSW Government fees and charges
Targeted Support
The NSW Budget has provided support for areas of the economy most affected by COVID-19 such as tourism, hospitality and the arts
This includes funding for business advice through the Business Connect Program which offers advice and skills training for small business across the state
Business Connect Advisors are located across NSW and can help people to start, run, adapt or grow their small business
Infrastructure
The NSW infrastructure pipeline has expanded and is expected to generate 145,000 jobs focusing on ‘shovel ready’ projects
Funds for Regional NSW
Regional NSW will receive additional funds aimed at supporting infrastructure, small business and tourism with almost $1B going towards regional hospitals and healthcare facilities, and $650M to schools
This includes funding for community upgrades, road and transport projects
Extra assistance will be available to farmers to help recover from the drought
Skills and Education
The NSW government will support the creation of new apprenticeships, traineeships and cadetships on social housing projects delivered by the NSW Land and Housing Corporation
Women will be able to apply for $5,000 grants for training and support to return to the workforce
Social Housing
$812M has been allocated to the construction and maintenance of new social and aboriginal housing
Promoting NSW in International Markets
The NSW government is committed to boosting exports and expanding the trade and investment network offshore to support NSW businesses in key international markets
Tendering Support
The Small Business Commission will be providing practical assistance to help businesses prepare and submit tender documents
Proposed Stamp Duty Changes
A proposal will be explored to give home buyers the option of paying stamp duty up front, or as a smaller annual property tax – watch this space!
For more information on how the NSW State Government Budget can support you and your business. please contact your Client Manager.
