NSW Premier Gladys Berejiklian has now committed $450 million to waive the payroll tax for businesses with payrolls of up to $10 million for three months ending 30 June 2020.
Further, the NSW government will bring forward the raising of the payroll tax threshold to $1 million from 1 July 2020, up from $900,000 and one year earlier than planned.
“Our first priority is always the health of the people of this state and looking after their families and jobs,” Ms Berejiklian said.
“This package works hand in hand with the recent moves by the Reserve Bank of Australia and the federal government. It will provide more resources to help slow the spread of this virus and boost treatment for those people in our community who need it most.”
The state government will also allocate $80 million to waive a range of fees and charges for small businesses including bars, cafés, restaurants and tradies, although details on these fees have yet to be released.
Pitcher Partners client director Lawrence Dujmovic said the payroll tax waiver could result in some significant savings for SMEs.
“At its height, an employer with an average payroll amount of $833,330 per month will save approximately $41,330 in payroll tax per month or $123,990 over the three-month period to 30 June 2020,” said Mr Dujmovic.
“These cash savings can be redeployed by business owners into areas where their business may be suffering due to social isolation, ill staff and low consumer confidence.”
Ms Palaszczuk has also announced a new $500 million loan facility to offer interest-free loans for the first 12 months.
Businesses will be allowed to borrow up to $250,000 with an initial 12-month interest-free period.
“The Queensland government already backs farms and businesses with assistance loans in times of natural disasters,” deputy Premier and Treasurer Jackie Trad said.
“Through the Queensland Rural and Industry Development Authority, we already have the mechanism in place to start rolling these loans out the door as soon as possible to help Queensland businesses keep staff on and survive this downturn.”
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.