The TSP team have been reviewing the NSW budget this week. Some of these areas we felt you might find helpful are:
Entertainment
Fun for everyone! $500 million to be spent on encouraging individuals and families to get back into their entertaining at local establishments! Designed to assist one of our hardest hit industries during lockdown, hospitality and entertainment, 4 x $25 vouchers for every person over 18 split between food and entertainment will be distributed. If you are a business needing access to the programme or an individual and want to know how to claim your vouchers, get in contact with us!
Payroll Tax Thresholds & Cuts
The payroll tax threshold will be increased to $1.2 million with the rate of payroll tax lowered from 5.45 to 4.85 per cent for the next two years. The threshold increase alone will deliver an annual saving of $10,900 (for businesses above the new threshold), with further savings over the next two years due to the lower rate. Recent Business NSW advocacy has resulted in a $450,000 increase to the threshold, saving the typical business close to $25,000 and exempting thousands of businesses from payroll tax.
Fee Relief for SME’s
SMEs that do not pay payroll tax will receive a $1,500 digital voucher to use against the cost of NSW Government fees and charges.
Job Creation
This is a big one. Under the $250 million Jobs Plus program, businesses that create more than 30 jobs will be exempt from paying payroll tax on any additional jobs beyond this threshold for four years. This policy is aimed at attracting new investment in NSW, including businesses looking to expand or relocate to NSW.
Skills & Education
$80 million will be allocated to support the creation of new apprentices, trainees and cadets on social housing projects delivered by the NSW Land and Housing Corporation. Women will be supported by $5,000 grants for training and support to return to the workforce while $17 million will be spent for upskilling, mentoring and job matching for people working in the care economy.
Property Tax
The Treasurer announced a proposal for property tax reform with a plan to replace stamp duty with an annual tax on land value. Under the proposal, homebuyers would be able to choose whether to pay stamp duty or the new land tax. It is estimated the proposal would boost the NSW economy by 1.7 per cent. The Government is seeking stakeholder feedback on the proposal – as more information is available we will keep you up to date.
If you have any questions on the areas above or on any other items contained in the budget please contact us on 49264155 or email us at admin@tspaccountants.com.au