This past week, the New South Wales government delivered the 2020-21 NSW State Budget. Designed to enable business to lead the state’s coronavirus economic recovery, this year’s Budget includes numerous practical support measures and incentives for businesses to create cash flow, invest in ventures, and drive job growth.
Here are the top three Budget announcements that your business could benefit from:
1. Payroll tax breaks
The government has announced $2.4 billion worth of cuts to payroll tax. The payroll tax threshold increased from $1 million to $1.2 million, with the tax rate dropping to 4.85% from 5.45% for the next two years. This tax break alone could save a typical business close to $25,000. If your business is smaller and exempt from payroll tax, you are eligible to receive a $1,500 digital voucher to use for government fees and charges.
In addition, the new Jobs Plus Program will support businesses who relocate their headquarters to NSW, or expand their workforce within the state. This program includes a payroll tax break, for up to a four year period, for every new job created where a business has created at least 30 new net jobs.
2. Funding for small business independent advice
$39.3 million has been pledged to Business Connect – the NSW government program that provides independent business advice and events for small business. Part of this service offering includes skills training. For example, learn how to build resilience in your business or how to recover from a crisis event. This support measure is part of the wider relief package for industries that have been majorly impacted by the pandemic – such as tourism, hospitality and the arts.
3. Tender support
Need assistance capitalising on these tax breaks?
As leading tax and finance professionals, our team is poised to assist or guide your business with essential announcements like the NSW state Budget. Contact your Client Manager directly, or alternatively, call us for a chat on 1300 996 928 or write to firstname.lastname@example.org with any questions.
As always we are here to support you to grow your business.