Chartered Accountants Australia has welcomed the NSW government’s plan to deliver a tax cut to small businesses by raising the payroll tax threshold.
The cuts were announced in the NSW budget earlier this week. It is expected the cuts will lead to business growth across the small business sector. The existing threshold of $750,000 will be raised progressively to $900,000 in 2019-20 and to $1 million in 2021-22.
The Berejiklian government says the cuts will come with a saving of $187 million to the small business ecosystem this yearand $571 million over the next two years.
CA ANZ Government Affairs Leader Sarah Davidson says this year’s state budget includes a number of initiatives to support continued small business and economic growth in the medium term, whilst also leading long-term reforms to build the sustainability of the tax base and economy in the future.
“The new payroll tax threshold increase to $900,000 announced in the 2019-20 NSW Budget will provide welcome savings to the state’s small businesses,” Davidson said.
“The budget’s funding to support the important work of the NSW Productivity Commissioner to streamline and harmonise the payroll tax system will further reduce red tape and costs for small businesses.”
“Given the pressure on revenue growth from the forecast revisions to stamp duty and the $2.3 billion write down in GST receipts over the next four years, it is positive to see the budget establish a four-pillar plan for future economic prosperity.”