The NSW Government will continue to support our local businesses impacted by COVID-19 with policies to make it easier to run a business – so they can re-build, attract investment and create jobs for the future.
In May 2020, the NSW Government brought forward by one year the increase in payroll tax threshold to $1 million.
This Budget announces a further permanent increase in the payroll tax-free threshold from $1 million to $1.2 million. This will see 3,500 NSW businesses no longer having to pay payroll tax, freeing up much needed capital for businesses to reinvest.
The NSW Government will also cut the payroll tax rate from 5.45 per cent to 4.85 per cent from 1 July 2020 for two years.
These tax cuts will provide a saving to businesses of around $2.4 billion for this fiscal year and the next – money that can be spent on employing more people and growing the NSW economy.
This budget also commits $472 million to provide small and medium size businesses, which do not pay payroll tax, with a $1,500 digital voucher for the cost of government fees and charges.
The NSW Government will inject up to half a billion in the Out and About program to stimulate spending in the local economy, including restaurants, visitor sites and cultural attractions. Every adult resident will be eligible to claim up to $100 in digital vouchers to spend on eating out and entertainment.
This stimulus measure will get money flowing into industries hit hard by the pandemic. It will generate jobs and give the people of NSW a great reason to support their local businesses who need a boost.
The NSW Government will invest $15 million in partnership with the City of Sydney to help revitalise the Sydney CBD and help business get back on their feet, including through promoting outdoor entertainment and al fresco dining.
The Budget will extend funding of $39.3 million for the Business Connect program, so more businesses can get the advice they need. During 2020, Business Connect has helped more than 10,000 businesses navigate the challenges of COVID-19.