Payroll tax reductions and deferrals to support businesses
NSW businesses are set to benefit from further payroll tax relief to help ease the financial burden of COVID-19 lockdowns.
Treasurer Dominic Perrottet said targeted support was being made available through Revenue NSW, with payroll tax deferrals already available for all businesses and a 25 per cent reduction on the 2021-22 payroll tax reconciliation for eligible businesses.
“Many businesses across the State are doing it tough right now with less foot traffic resulting in a decline of sales and transactions,” Mr Perrottet said.
“These payroll tax measures are part of over $4 billion in various business grants and assistance to help businesses stay in business and to keep staff in jobs.”
“We have said right throughout the pandemic that we would put people, businesses and jobs ahead of the budget, which is why we are rolling out a record business support program.”
Finance and Small Business Minister Damien Tudehope said the NSW Government was standing by to help businesses wherever possible.
“We know the effects of restrictions are being felt right across the state and that’s why we have ensured that all payroll tax customers are able to take advantage of the deferral and repayment options, regardless of size or geographical location,” Mr Tudehope said.
“We want to free up cash for businesses at a time when businesses are doing it tough, by waiving or deferring their tax.”
All NSW businesses who have a payroll tax liability have the option of deferring lodgement and payment of their 2020/21 annual reconciliation until 7 October 2021.
Customers required to lodge monthly returns will also have the option of deferring their returns due in August and September until 7 October 2021.
In addition, all payroll tax customers that defer their payments are eligible for an interest free payment plan of up to 12 months.
Businesses with wages between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover will get a 25 per cent reduction of their 2021/22 payroll tax. This will deliver even more support to smaller businesses.
For more information about payroll tax reductions and deferrals, customers should visit Revenue NSW or email or call on 1300 139 815.
Key components of the NSW Government’s COVID-19 support package include:
- The 2021 COVID-19 Business Grant is available to eligible NSW businesses that have a turnover between $75,000 and $50 million (inclusive), and a total Australian wages bill of $10 million or less. They can claim grants between $7,500 and $15,000 to cover the first three weeks of restrictions. Businesses can apply now by visiting the Service NSW website
- The JobSaver scheme, to be delivered together with the Commonwealth, will provide cash flow support to help eligible businesses retain staff. This will be up to 40 per cent of weekly payroll with a payment of between $1,500 to a maximum of $10,000 per week, provided staffing levels are maintained at the level as of 13 July 2021. Eligible non-employing businesses will receive $1,000 per week;
- From July 26, the Micro Business COVID-19 Support Grant will be available for eligible businesses with a turnover of more than $30,000 and less than $75,000 that experience a decline in turnover of 30 per cent or more. Eligible businesses will receive $1,500, tax-free, per fortnight of restrictions;
- Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability;
- Residential landlords who decrease rent for impacted tenants can apply for a grant of up to $1,500 or land tax relief depending on their circumstances.
- Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25 per cent due to COVID-19 and meets a range of criteria;
- No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation.