The Government is investing in initiatives that will attract, support and encourage business activity across New South Wales. Already it has made it cheaper and easier to do business in many ways, slashing $1.6 billion in taxes last year for families, farmers and small businesses.
From 1 July 2018 the tax-free threshold for payroll tax will increase from $750,000 to $850,000. It will continue to increase by $50,000 every year to reach $1.0 million in 2021-22. Taxable payroll includes salaries, superannuation, bonuses and fringe benefits paid to workers in New South Wales.
The increased thresholds will reduce the number of NSW small businesses subject to payroll tax by around 2,000 in 2018-19. This will grow to around 5,000 in 2021-22, of which around 1,500 are expected to be based outside of Sydney.
All industry sectors are expected to benefit from this reform, including more than 1,000 businesses in the manufacturing and construction sectors, as well as more than 800 businesses providing professional, scientific and technical services.
These businesses will be relieved of the cost pressures of payroll tax, as well as the administrative complexity of complying with payroll tax obligations.
In addition, the Government will:
- invest $37.0 million in 2018-19 to accelerate and extend the roll out of the Easy to do Business Program, in the cafes, restaurants and small bars and housing construction sectors in New South Wales, under the Project Agreement for Small Business Regulatory Reform agreed with the Commonwealth
- invest $2.0 million ($7.1 million over four years) for civil justice initiatives to provide a responsive and effective civil justice system that will support small businesses to resolve matters quickly and efficiently, and to alleviate demand pressures on courts.
NSW Productivity Commissioner
Just over a month ago, the NSW Government appointed its first ever Productivity Commissioner.
With a mandate to bust red tape and make New South Wales the easiest place to do business, Mr Peter Achterstraat AM was appointed to drive the State’s productivity agenda, which centres around implementing the Government’s response to the regulatory review undertaken by former NSW Premier Nick Greiner and driving microeconomic reform.
One of the Productivity Commissioner’s core objectives is to make it easier and cheaper to do business in New South Wales. Improving productivity means ensuring the Government streamlines business red tape as much as possible, by ensuring the regulatory framework in New South Wales is efficient, effective and up to date.