NSW budget focuses on stimulus and job creation
The New South Wales Government handed down its 2020-21 Budget on 17 November 2020. It includes several large-scale announcements to boost the economy and create jobs as the state battles its way out of COVID-19.
Central to supporting the economic recovery is a series of large investments in infrastructure.
Key Business and Tax measures announced in the Budget include:
- Over the coming months, the government will seek feedback on whether the current stamp duty system should be reformed to allow buyers to opt out of stamp duty and instead choose a smaller annual property tax. Those who opt-in to annual property tax will also not have to pay land tax. The proposed model includes a property tax rate that would be lower rate for owner-occupiers and higher rates for investors and commercial property owners. Depending on the result of the consultation, the reformed system could begin in the second half of 2021.
- From 1 July 2020, the tax-free threshold for payroll tax in NSW will increase from A$1 million to A$1.2 million.
- The payroll tax rate will be reduced from 5.45 per cent to 4.85 per cent from 1 July 2020 to 30 June 2022.
- Businesses that do not pay payroll tax will receive a $1500 voucher for the cost of government fees and charges. The voucher will be available from April 2021, which is when many current government fee waivers expire. It will operate as a rebate, where a claim can be made after fees and charges have been paid.
- Every adult resident of NSW will be eligible for four $25 digital vouchers. Two vouchers can be used for eating in at venues such as restaurants and cafes, and two vouchers can be used for entertainment and recreation such as cinemas and amusement parks.
- The commercial rent relief scheme will be extended to 28 March 2021 for retail tenants only with an annual turnover of less than $5 million.
- Landlords who provide rent reductions between 1 January and 28 March 2021 to eligible retail tenants experiencing financial distress due to the pandemic can apply for land tax relief of up to 25 per cent on the land leased for the 2021 land tax year.
- The NSW Government will offer businesses that create at least 30 new net jobs payroll tax relief for up to four years, for every new job created. The Jobs Plus Program commences on 15 December 2020 and runs until 30 June 2022.
For more information and an outline of the key transport infrastructure, education and training and health announcements, visit www.budget.nsw.gov.au