The following is a summary of key relief incentives released by the NSW government and the City of Sydney.
(The following information is correct as at 3 April 2020)
Stage One: announced 17 March 2020
- Waiver of a 25% of 2019-2020 payroll tax for businesses with grouped Australian taxable wages of up to $10 million.
How to apply: Revenue NSW will automatically apply 25% reduction once the businesses have lodged their 2019-2020 annual payroll tax reconciliation. In the meantime, these eligible businesses do not need to pay their March, April and May monthly payroll tax.
- Fast track of the next round of payroll tax cuts will raise the threshold limit to $1 million for the 2020-21 financial year
How to apply: Automatic, expected to be applied to monthly returns from 1 July.
- Waiver of some charges and licencing fees for small businesses including bars, cafes, restaurants and tradespeople.
The NSW State Government are yet to specify eligibility and which fees will be waived.
- $250 million to employ additional cleaners of public infrastructure including public transport and schools as well as bringing forward of maintenance on public assets, bring forward capital works projects.
Stage Two: announced 27 March 2020
- Businesses with payrolls of over $10m: deferral of payroll tax for 6 months.
- Businesses with payrolls of less than $10m: 3 month waiver (as announced on 17 March) and an additional 3 month deferral of payroll tax.
- Deferral of gaming machine tax for clubs, pubs and hotels for 6 months.
- Deferral of parking space levy for 6 months
- Deferral of rent for commercial tenants in Government-owned properties with less than 20 employees for 6 months.
Stage Three: announced 3 April 2020
NSW small business will receive grants up to $10,000. The eligibility criteria are:
- Have between 1-19 employees and a turnover of more than $75,000;
- A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;
- Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
- Be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020;
- Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
- Provide appropriate documentation upon application.
How to apply: Eligible businesses will need to apply through Service NSW. The application within a fortnight of the announcement remain open until 1 June 2020.
City of Sydney Council relief package
- Rent relief for eligible tenants.
- Refunds for venue fees and advertising bookings.
- Coverage of costs for aquatic centres so casual workers are paid.
- Waiver of outdoor dining fees and fines for using a footpath without a permit.
- Parking fines will only be issued if there is “an imminent public or environmental health or safety risk”.
For all the latest updates on the NSW stimulus package, please visit preview.nsw.gov.au/Covid-19
It is likely additional measures will be announced in the future as the COVID-19 crisis continues to change almost daily and governments continue look to assist business and jobs.
Read more about the Federal Government incentives:
We are here to help. Speak to one of our tax partners should you wish to learn more.