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In delivering his fifth budget Treasurer Dominic Perrottet’s said NSW is looking to the future from “a position of strength,” daring to “do things differently”.
But what does that mean for small business?
Continuing payroll tax cuts
- Payroll tax rate will remain at 4.85% for another year
- Payroll tac free threshold will stay at $1.2 million
Small business payment terms shortened
- The Small Business Shorter Payment Terms Policy requires large businesses are to pay their small business subcontractors within 20 days
- Effective July 1, the policy applies to goods and service contracted to NSW government agencies valued at more than $7.5 million
Boost for small and regional business procurement
- The budget includes an updated policy designed to increase the number of small and regional businesses state government agencies procure from
- An increase to the current exemption of $50k for small business to $150k for SMEs and regional business
$1500 fees and charges rebates
- Established in April, the fees and charges rebate scheme will continues
- SMEs with total wages bill below the 2020-2021 $1.2 million threshold are eligible to apply for a $1500 rebate on NSW state and local government fees
Dine & Discover Voucher extension
- The existing Dine & Discover program is extended until the end of July
- With only 40% of vouchers redeemed, this one month extension is an attempt to encourage more residents to use their vouchers
New CBD Friday Vouchers
- A new $50 million Sydney CBD Friday voucher program offers residents four $25 vouchers to use in participating hospitality and entertainment venues.
- The Thank God It’s Friday voucher scheme is set to kick off this summer.
Accommodation vouchers
- A $20 million voucher program, with $100 on offer to NSW residents to use on a Sydney holiday in the CBD over winter is aimed at benefitting city hotels
Commercial refrigerator rebates
- Commercial refrigerator rebates will continue for small businesses that buy or lease commercial fridges and freezers.
- Businesses can receive up to $1,490 per fridge, and each business can claim up to five rebates under the program.
Events sector
- A $200 million investment over four years is aimed at to enticing major arts and tourism events
- This includes a $15 million plan to transform the Cahill Expressway into a modern nightlife area inspired by the Manhattan High Line. Traffic will be blocked between December 31 and January 6 and the street will hold a series of events celebrating New Year’s Eve and the opening of next year’s Sydney Festival.
Funding for the NSW Small Business Commission
- The NSW Small Business Commission will receive $13 million to continue assisting the state’s small businesses.
- Additionally, the tender support program at TAFE NSW will receive a $5 million injection, allowing small businesses to continue accessing government procurement training.
We have more on the winners and losers.
For full budget details click here.
In the meantime, if you have questions, concerns or want to discuss ways the budget impacts your business now, call your CIB Advisor anytime.
