NSW $2.3 billion stimulus package announced

Premier Gladys Berijiklian has put the finishing touches on a NSW stimulus package worth $2.3 billion. The big news for small business is a waiving of the payroll tax for the next three months which could amount to a saving of around $450 million.

The exemption applies to businesses with a turnover of less than $10 million. It means businesses will not have to pay the tax for the remainder of the financial year. The premier has also brought forward the next round of payroll tax cuts to raise the threshold limit to $1 million for the next financial year.

MYOB AccountRight Product Manager, Dale Dixon welcomed the  1.6 billion in tax relief for small businesses in New South Wales suggesting it will ensure the state’s economy weathers the storm.

“Today’s announcement, which includes $450 million allocated to waive payroll tax for businesses with payrolls of up to $10 million for three months, will help small business owners manage their cash flow and retain their employees through this turbulent period.

“After a very difficult start to the year due to the bushfire crisis, and now the impact of coronavirus, NSW’s more than 1.1million small businesses need our help and our priority is not only to help small business survive but also to come out of this stronger,” said Dixon.

Other elements within the stimulus package include capital works investments and waiving charges and licence fees for small businesses, while more funding is in place for schools to employ extra cleaners.

NSW Health has been earmarked to receive a $700 million funding boost to assist in battling the COVID-19 pandemic. The funds should allow NSW to double the number of intensive care facilities within the state. Funding has also been allocated to provide for pop-up testing services and establish dedicated fever clinics..

“Our first priority is always the health of the people of this state and looking after their families and jobs,” Ms Berejiklian said.

$80 million in fees have been waived to assist the hospitality industry, which is already struggling with the fallout from the pandemic.