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*This page was last updated on 18 March. For more information, click here.
On 17 March 2020, the New South Wales (NSW) State Government announced a $2.3 bn stimulus package aimed at both households and small to medium businesses.
While $700m of the package is aimed directly at front-line support for hospitals and health services, the remaining $1.6 bn represents economic stimulus measures, designed to keep people employed and in jobs throughout the crisis.
From a small to medium business perspective, the key tax and revenue measures are:
- A waiver of payroll tax for the rest of the 2019-20 financial year for businesses with group Australian taxable wages of up to $10m. These businesses will still have to lodge their annual return, with no payroll tax payment required for the months of March, April or May 2020. This measure is expected to cost the Government $450m in foregone revenue;
- The increase in the payroll tax threshold to $1m has been brought forward. Therefore, instead of commencing from 1 July 2021, the payroll tax threshold for all businesses will be $1m as of 1 July 2020; and
- Approximately $80m in fees and charges will be waived for small businesses such as cafes, restaurants and those in trades.
From a small to medium business perspective, the key tax and revenue measures are:
- $250m for public schools and government-owned buildings to employ more cleaners; and
- $750m to spent on additional capital works and the maintenance of public assets.
Given the situation is rapidly developing, it is possible that there may be further stimulus measures, whether before, or as part of, the next NSW State Budget, expected in mid-June.
RSM will continue to keep you informed of any further announcements of stimulus and support measures by State and Federal Governments.