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.
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.
- 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.
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.
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.