The struggling hospitality sector is a major beneficiary of NSW Budget measures to stimulate economic recovery announced today.
Payroll Tax cuts for from 5.45 per cent to 4.85 per cent for two years and a permanent increase in the payroll tax threshold from $1 million to $1.2 million were announced as part of an overhaul of this unpopular tax.
These tax cuts, worth $2.8 billion, will provide an average saving of around $34,000 a year for the next two years for businesses liable for payroll tax.
NSW resident aged 18+ will be eligible for four $25 Out & About digital vouchers totalling $100. Two vouchers are for use in restaurants and cafes and two for arts and tourism attractions, including cinemas, throughout NSW to boost local businesses.
Vouchers are not yet available but will be rolling out over coming months.
It is expected that business will need to sign up via Service NSW to join the scheme. Individuals will need to sign-up via the Service NSW app to get voucher access. People without digital access will be able to attend a Service NSW office to receive printed vouchers.
Further details will released as they are finalised by Service NSW.
Other Budget highlights for businesses include:
$472 million for new digital vouchers worth $1,500 which can be used by small businesses under the payroll tax threshold towards the cost of government fees and charges;
More than $39 million in a funding boost for the Business Connect program to support small businesses across the state to access targeted business advice;
Almost $2 million to continue the small business rebate program, providing up to $500 to support small business owners and sole traders who buy and install safety equipment;
A temporary extension to 28 March 2021, of the National Cabinet Mandatory Code of Conduct SME Commercial Leasing Principles – for retail tenants only with an annual turnover of less than $5 million.
Landlords who provide rent reductions between 1 January 2021 to 28 March 2021 to eligible retail tenants experiencing financial distress due to the pandemic, can apply for land tax relief of up to 25 per cent on the land leased for the 2021 land tax year.