This Budget announces a further permanent increase in the payroll tax-free threshold from $1 million to $1.2 million from 1 July 2020. This will see 3,500 NSW businesses no longer having to pay payroll tax, freeing up much needed capital for businesses to reinvest.
The NSW Government will also cut the payroll tax rate from 5.45 per cent to 4.85 per cent from 1 July 2020 for two years.
This budget also commits $472 million to provide small andmedium size businesses,which do not pay payroll tax, with a $1,500 digital voucher for the cost of government fees and charges.
The NSW Government will inject up to half a billion in the Out and About program to stimulate spending in the local economy, including restaurants, visitor sites and cultural attractions. Every adult resident will be eligible to claim up to $100 in digital vouchers to spend on eating out and entertainment.(This doesn’t apply to alcohol or cigarettes).
Tax Reform for Land and Property
To tackle an inefficient property tax system, over the coming months the Government will seek feedback from the public on a possible transition away from the current transfer duty and land tax system. Buyers will be given the choice between eitherstamp duty or the annual property tax.If you choose the property tax option, all future owners of the site would be locked into the annual levy.
The changes would only apply to those buying property.If you’re not moving home and have already paid stamp duty you will not have to pay the tax.First home buyers, who would currently receive stamp duty concessions for properties of up to $800,000, would be given a grant of up to $25,000 to go towards the tax or home refurbishing. –Please note that this is a proposed reform only.It is not anticipated the changes will be legislated in the near future.
Female Focused Employment
To help women return to the workforce, the NSW Government is introducing grants of up to $5,000 for training and support.
The NSW Government will invest $318.6 million over two years in the Skilling for Recovery training package to help job seekers retrain or upskill, and support school leavers entering the workforce for the first time.
This training program will deliver on the NSW Government’s commitment, under the Commonwealth JobTrainer Fund, to offer more than 100,000 low cost or fee-free training places to individuals in NSW, with a focus on school leavers disadvantaged by the pandemic.