NSW Treasury officials Premier Gladys Berejiklian, Treasurer Dominic Perrottet and Minister for Health Brad Hazzard today announced a NSW stimulus package in response to the coronavirus crisis.
In a nutshell, the package is aimed at three things – saving lives, creating jobs and supporting small business in NSW.
The key elements are:
1 – A $700m investment into heath care which represents around a 75% increase in the health care budget over the next 6 months to provide health care officials with the support that they need to keep people safe across NSW.
2 – A small business package which will:
a. Waive the payroll tax liability for businesses with a payroll of up to $10M, which is an average saving of around $15,000, for the June quarter. On average, these businesses have employees of around 25 and up to 100 employees at the higher end. Whilst not currently clear it is expected that this payroll tax exemption will be applied automatically.
b. Bring forward payroll tax cuts, which were scheduled for subsequent financial years, to next financial year in the form of an increase to the payroll tax threshold from $900,000 to $1M. This will mean that some 2,000 small businesses will no longer have a payroll tax liability.
3 – Additional financial support will be provided to bring forward maintenance and capital projects over the next 6 month period. Forestry corporations will receive an equity injection of $46m to commence work immediately on rebuilding and replanting the forests that have been devastated by the bushfires; and other areas across the state such as education and road maintenance will receive additional support to bring forward projects and assist creating jobs and stimulating the economy.
For more information to see how LT can help your business over this challenging time please call our team.