2020-21 NSW State Budget Announcement

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.

This article was co-authored by Peter Bardos, HLB Mann Judd Sydney.