The NSW budget champions a business-led recovery, supporting businesses to grow, invest and create jobs in their local communities.
Highlights for Business
Payroll tax thresholds and cuts:
The payroll tax threshold will be increased to $1.2 million with the rate of payroll tax lowered from 5.45 to 4.85 per cent for the next two years. The threshold increase alone will deliver an annual saving of $10,900 (for businesses above the new threshold), with further savings over the next two years due to the lower rate. Recent Business NSW advocacy has resulted in a $450,000 increase to the threshold, saving the typical business close to $25,000 and exempting thousands of businesses from payroll tax.
Dining and entertainment vouchers:
$500 million will be allocated to deliver four $25 vouchers to every NSW adult to spend at entertainment and hospitality venues. This measure will provide a much-needed temporary boost to customer demand in some key parts of the economy that are struggling.
Fee relief for SMEs:
SMEs that do not pay payroll tax will receive a $1,500 digital voucher to use against the cost of NSW Government fees and charges. These vouchers will be accessible online through the MyService NSW portal and work as a rebate, meaning a claim for the voucher is made after the fee has been paid. The vouchers will be available for use from April 2021 to June 30, 2022.
Under the $250 million Jobs Plus program, businesses that create more than 30 jobs will be exempt from paying payroll tax on any additional jobs beyond this threshold for four years. This policy is aimed at attracting new investment in NSW, including businesses looking to expand or relocate to NSW.
In addition to existing drought and bushfire relief, regional NSW will benefit from $8.7 billion in regional road and transport infrastructure spending. The Regional Growth Fund which provides funding for community upgrades and projects, has been expanded by $300 million. More than 90 new and accelerated regional projects totalling $1.8 billion have been supported by the Jobs and Infrastructure Acceleration Fund.
Skills and education:
$80 million will be allocated to support the creation of new apprentices, trainees and cadets on social housing projects delivered by the NSW Land and Housing Corporation. Women will be supported by $5,000 grants for training and support to return to the workforce while $17 million will be spent for upskilling, mentoring and job matching for people working in the care economy.
Property tax reform:
Business NSW has long advocated for the need for state-based tax reform. In a significant advocacy result, the Treasurer announced a proposal for property tax reform with a plan to replace stamp duty with an annual tax on land value. Under the proposal, homebuyers would be able to choose whether to pay stamp duty or the new land tax. The Government is seeking stakeholder feedback on the proposal.