The NSW State Budget was handed down by Treasurer Dominic Perrottet on Tuesday 17 November. As, like the rest of the country, NSW seeks to rebuild from the challenges of COVID-19 the budget has a strong focus on job creation. It also introduced the prospect of some major tax reform.
Payroll tax
$2.8 billion in payroll tax relief will support jobs in NSW. From 1 July 2020, the NSW payroll tax threshold has been increased from $1 million to $1.2 million. Businesses that are not required to pay payroll tax are eligible for a $1,500 digital voucher that can be used to claim a refund of government fees and charges. In addition, the payroll tax rate in NSW has been temporarily reduced to 4.85%. In addition, the Job Plus Program will provide $250 million in payroll tax relief and other support over the next four years for businesses creating at least 30 new net jobs in NSW.
Business Connect Program
A further $39.3 million in funding has been provided for the Business Connect Program enabling businesses to seek advice as they navigate the challenges of COVID-19.
Small business rebate program
The small business rebate program will be extended providing up to $500 in support for small business owners and sole traders installing safety equipment.
More information on the NSW State budget can be found here.
