The NSW Treasurer handed down the State 2020-21 Budget last night, 17 November 2020.
This year’s Budget strives to stimulate the industries impacted by COVID-19, with a focus on the hospitality industry.
The aim of the Budget is to preserve and create jobs in NSW, with programs and grants intended to have a positive impact on many NSW individuals and businesses.
Summarised below are some of the key measures from the Budget.
Stamp Duty Reform
- The budget included proposed stamp duty reform by introducing an opt-in property tax.
- It is proposed that home buyers will be able to choose between paying stamp duty upfront or paying a smaller, annual property tax.
- Once a property is subject to the property tax, subsequent owners must pay the property tax.
- The proposal is in consultation phase until 15 March 2021.
The below link contains further details regarding the proposed changes to stamp duty, including the consultation paper.
https://www.treasury.nsw.gov.au/property-tax-proposal
Payroll Tax Cuts
- A permanent increase in the payroll tax-free threshold from $1 to $1.2m from 1 July 2020.
- The payroll tax rate will be lowered from 5.45% to 4.85% from 1 July 2020 until 30 June 2022.
Out and About
- Every adult resident can claim up to $100 in digital vouchers (four vouchers worth $25 each) via their MyServiceNSW account.
- Two vouchers for food at venues and two for activities, such as visiting cinemas and amusement parks.
- For service providers to participate, businesses must have a MyServiceNSW account and be registered as COVID-safe.
Other Measures
- Small and medium sized businesses which do not pay payroll tax may be eligible to receive a $1,500 voucher for the cost of government fees and charges.
- Up to $5,000 Return to Work Grant for training and support for women returning to the workforce.
Information on other measures and further detail on the NSW 2020-21 Budget can be found at the below link.
https://www.budget.nsw.gov.au/budget-detail/making-it-easier-run-business
Jobs Plus Program
The Jobs Plus Program was announced on 5 November 2020 as an incentive for employers in increase their footprint in New South Wales. More detail was expected in last night’s budget however is yet to be realised.
- Commencing on 15 December 2020 until 30 June 2022
- Payroll tax relief for up to 4 years for every new job where a business creates at least 30 new jobs.
For updates on the Jobs Plus Program please see the following link.
https://www.nsw.gov.au/projects/jobs-plus-program
We will continue to keep you updated with further information as it becomes available.