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What the 2020-21 NSW Budget means for small business

Budget word in a speech bubble

The 2020-21 NSW Budget contains a number of measures designed to assist and support small business.

A message from the Commissioner

As the COVID-19 recovery gains momentum I encourage all small businesses across NSW to take a good look at the measures announced in this years NSW Budget. Many of the initiatives announced start immediately and may provide your business with important financial assistance or support. 

A summary of some of the key measures for small business

The 2020-21 NSW Budget contains a number of measures designed to assist and support small businesses.

The centrepiece announcement for small businesses is a $2.1 billion lowering of the payroll tax rate for 2020-21 and 2021-22. Under the change the payroll tax rate will be reduced from 5.45 per cent to 4.85 per cent. Businesses are entitled to immediate tax savings as the lower rate applies retrospectively from 1 July 2020.

Budget measures to support business include:

  • A cut in in the payroll tax rate from 5.45 per cent to 4.85% for a two-year period worth $2.4 billion and an increase in the payroll tax threshold to $1.2 million from $1 million;
     
  • $500 million for a flagship Out and About program giving $100 worth of digital vouchers to NSW residents to spend at restaurants, cafes and on arts and tourism attractions across NSW to boost businesses and encourage people to spend local;
     
  • $472 million for new $1500 digital vouchers which can be used by small businesses under the payroll tax threshold towards the cost of government fees and charges;
     
  •  A $39.3 million boost for the Business Connect program which has been extended for a further three years to support small businesses across the state to access targeted business advice;
     
  • $5 million for the Small Business Commission to establish a new tendering support service under a four-year program, providing small business with practical tips and assistance to prepare and submit government tenders;
     
  • $1.8 million to expand the small business rebate program, providing up to $500 to support small business owners and sole traders who buy and install safety equipment;
     
  • An extension of the COVID-19 commercial leases regulation to 28 March 2021 for retail tenants with an annual turnover of less than $5 million. Landlords who reduce the rent of eligible retail tenants from 1 January 2021 to 28 March 2021 can apply for land tax relief of up to 25 per cent on relevant properties for the 2021 land tax year.
     

For more information on all the details for small businesses in the 2020-21 NSW Budget, go to the NSW Government website.

 

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