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NSW budget releases key measures to stimulate small business

- June 23, 2021 2 MIN READ

The NSW Government has announced a number of measures to support small business as part of the State’s 2021-22 Budget.

Introduction of the new Small Business Shorter Payment Terms Policy. This will require large businesses who contract to supply goods or services (valued at or above $7.5 million) to NSW Government agencies to pay their small business subcontractors within 20 business days.

An updated Small and Medium Enterprise (SME) and Regional Procurement Policy, which will:

  • Increase the current general exemption of $50,000 for small businesses to $150,000 for SMEs and regional businesses;

  • Require agencies to first consider SMEs for procurements up to $3 million, where direct engagement is permitted;

  • Require suppliers tendering for contracts valued at more than $3 million to submit an SME and Local Participation Plan, which will become contractually binding.

Continuing payroll tax cuts for the next year, with the rate remaining at 4.85 per cent, alongside a permanent increase in the payroll tax threshold to $1.2 million.

Continuing the $1500 fees and charges rebate scheme to help small businesses cover the cost of NSW and local government fees and charges. The scheme is available to small businesses who have a total wages bill below the 2020-21 $1.2 million payroll tax threshold.

An extension of the Dine & Discover program by one month, until the end of July, giving people more time to use all their vouchers across almost 14,000 participating businesses.

Introduction of a new $50 million CBD Friday voucher program that will offer four $25 vouchers for use towards dining and entertainment experiences in the Sydney CBD on Fridays.

Commercial refrigerator rebates for eligible small businesses for the lease or purchase of commercial fridges and freezers. Applicants can get up to $1,490 per fridge, with each business able to claim up to five rebates under the program.

The NSW Small Business Commission will receive $13 million in funding to assist the State’s small businesses, which will support:

  • Additional mediation staff to support the low-cost resolution of retail and commercial tenancy disputes as well as business-to-business disputes;

  • Additional customer service positions to manage calls and web-based enquiries from small businesses and provide tailored information and support;

  • Continuation of the four-year $5 million tender support program in partnership with TAFE NSW to help small businesses improve their tendering skills;

  • Enhanced advocacy, surveying and stakeholder engagement activities to identify the key issues facing small businesses during the COVID recovery and develop solutions and support.

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