New South Wales will fund payroll tax breaks and fee reductions for small businesses as part of its $2.3 billion Economic Stimulus Package to counter the impacts of the escalating Coronavirus outbreak.
While $700 million will boost health funding, the remaining $1.6 billon will enable tax relief for small businesses and fund job growth.
The most significant measure for SME businesses is the deferral of payroll tax which should help sustain employment, while funding for maintenance works should boost jobs and bring business to trades.
Payroll tax assistance
- Payroll taxes will be waived for the rest of the financial year. This assistance will be provided to small businesses with a payroll of up to $10 million. The $10 million is likely to be determined based on the payroll of the overall payroll tax group, however the specific detail of the measure has not been released.
- The next round of payroll tax cuts will be brought forward by raising the threshold limit to $1 million for the next financial year.
- The government will waive a range of fees and charges for small businesses including bars, cafes and restaurants.
- The NSW Government has allocated $500 million to bring forward capital works and maintenance.
- Additional maintenance on public assets including social housing and crown land fencing has also been announced together with funding of over $250 million.
To find out whether you’re eligible for the payroll tax assistance or fee reductions as part of the NSW Government’s economic stimulus package, please contact your William Buck adviser.