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NSW BUDGET 2020

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What there is for NSW Small Business

Support for local and small businesses a focal point for the NSW government in its 2020-21 Budget.

Payroll tax relief

The 2020/21 NSW State Budget has announced a temporary reduction in the payroll tax rate to 4.85% for the 2020/21 and 2021/22 financial years. The threshold will also increase to $1,200,000 for the 2020/21 and subsequent financial years.

Changes will apply retrospectively from 1 July 2020. More information will be provided on the NSW Revenue website once the Payroll Tax Act 2007 has been amended.

Vouchers to assist with government fees and changes

After enduring bushfires, drought and COVID-19, the government has committed $472 million to provide small and medium-sized businesses that do not pay payroll tax with a $1,500 digital voucher for the cost of government fees and charges, including local government.

Out & About program

Up to $500 million will be spent on the Out & About program to stimulate spending in the local economy, including restaurants, visitor sites and cultural attractions where every adult in NSW will receive four $25 digital vouchers to spend separately on dining and entertainment.

  • Two vouchers can be used for dining in venues
  • Two can be used for entertainment and recreation at cinemas, amusement parks, performing arts and art galleries
  • Vouchers cannot be redeemed for alcohol, tobacco or gambling.

Common questions about the Out & About scheme are answered at https://www.nsw.gov.au/covid-19/out-about-vouchers. The vouchers will become available throughout 2021 and NSW residents are encouraged to download the Service NSW app. You must have a MyServiceNSW account to receive the Out & About Scheme vouchers. Any NSW resident aged 18 and above will be eligible to receive a voucher.

Assistance with bringing on new apprentices and training programs

The NSW government will invest $318.6 million over two years in the Skilling for Recovery training package to help jobseekers retrain or upskill and support school leavers entering the workforce for the first time.

Training will be delivered under the auspices of the Commonwealth JobTrainer Fund:

  • $57.4 million investment over four years to create a Trades Skills Pathways Centre to address skills shortages in the NSW economy and support employment for women
  • Grants of up to $5,000 will be available to help women with training and support to return to the workforce.

More details at https://www.nsw.gov.au/media-releases/skilling-for-recovery-fee-free-training.

Consult the Salisbury Team of business accountants for practical State Budget assistance for your business on 02 6041 3014.