The 2020-2021 Budget was described as responding to the urgent needs of NSW now, whilst also looking beyond the current crisis and into the future.
The key factors for NSW businesses are as follows:
- Changes to payroll tax rates and thresholds
- $1,500 digital voucher
- Commercial rent relief
- Jobs Plus program
- Tax reforms
Payroll tax changes
The payroll tax rate will be reduced from 5.45% to 4.85% for the next two years, in addition, the payroll tax threshold will increase from $1m to $1.2m from 1 July 2020.
These changes will take many small and medium businesses out of the payroll tax system and reduce the payroll tax burden on those businesses that continue to be subject to payroll tax.
Please do not hesitate to contact your client manager to conduct a review of your payroll tax circumstances, as this is a regular area of NSW revenue reviews.
$1,500 digital voucher
Small and medium size businesses, which do not pay payroll tax, will be provided with a $1,500 digital voucher that can be applied towards the cost of government fees and charges.
Commercial Rent Relief
The commercial rent relief scheme has been extended until 28 March 2021. The extension will apply to retail tenants with annual turnover less then $50mil that has a downturn of turnover greater then 30%.
Jobs Plus Program
The Jobs Plus Program aims to create or support 25,000 jobs between 15 December 2020 and 30 June 2022. Businesses that create (net) at least 30 new jobs in NSW will be eligible for payroll tax relief for up to a four year period.
There will also be a review into reforming the property tax system, including stamp duty and land tax.
Stay tuned for further updates as they arise!
Please contact your client manager directly by phone on (02) 8543 6800 or email for more information.