NSW Government Budget release
Yesterday, the NSW Government released its 2020/21 Budget and it is jam packed with new and continuing initiatives for our regions and businesses. Here is a breakdown of a few key announcements:
Payroll tax – The threshold is being increased to $1.2 M, exempting a further 3500 businesses in NSW from payroll tax. There is also a cut for 2 years of the payroll tax rate from 5.45% to 4.85%. total overall savings to business is estimated at $2.4 billion.
Stamp Duty and Land Tax reform – The Government will be seeking public consultation on reforming the current land tax and transfer duty scheme. The proposal is for home buys be given the option of the upfront Stamp Duty or to pay an ongoing annual land tax.
Digital vouchers – The Government has committed to supply $1,500 digital vouchers to small & medium businesses to assist with government fees and charges.
Out and About – The program will provide every adult resident of NSW with a $100 in digital vouchers to spend on eating out and entertainment. The total cost is estimated at $500 million.
Jobs Plus Fund - $250 million program aimed at delivering 25,000 new jobs in NSW by June 2022 through initiatives such as payroll tax relief and access to free or subsidised spaces, and will be available for companies if they create at least 30 new jobs.
Regional Growth Fund - $300 million is being added to the Regional Growth Fund with a focus on economic development and job creation through the Stronger Country Communities program.
Upskilling workers - $318 million will be invested over 2 years as part of the Federal Government’s JobTrainer Fund, this is aimed to deliver 100,000 low cost or fee-free training places.
Preschool funding - $120 million has been allocated to extend the existing free preschool to the end of 2021 for over 44,000 3-to-5-year old’s attending community preschool.
Infrastructure – There is a large infrastructure spend with a project pipeline of $107 billion for projects planned and currently underway. There is $3 billion allocated to the Jobs and Infrastructure Acceleration fund, this includes projects such as the St George Hospital Precinct development, 3 new public schools, $157 million replacement of the LED light replacement within schools across the state and much more.
As with all Government announcements, there needs further confirmation on the successful passage of legislation prior to implementation.
If you would like to discuss how one of the initiatives may affect you and your business, please reach out to us on 02 6883 2200.