Copy

Your Knowledge
 

2020-21 NSW State Budget
Summary

On Tuesday 17 November 2020 the NSW Treasurer handed down the 2020-21 State Budget. This year’s Budget has a strong focus on job creation and strives to stimulate the industries impacted by COVID-19, especially the hospitality industry. 
 
The budget also introduced the prospect of some major tax reform for the stamp duty and land tax regimes.
 
Below is a summary of some of the key measures from the Budget.

Stamp Duty Reform

Over the years there have been several reviews recommending transfer duty be replaced with a broad-based land tax. This budget included proposed stamp duty reform as follows:
  • It is proposed that home buyers will be able to choose between paying stamp duty upfront or paying a smaller, annual property tax.
  • Once a property is subject to the property tax, subsequent owners must pay the property tax.
  • It is intended to incentivise home ownership with lower rates for owner-occupiers.
  • There is no impact on the current property owners who are not buying or selling.
  • Current stamp duty concessions will be replaced with new grants for first home buyers.
  • The proposal is in consultation phase until 15 March 2021.

This link contains further details regarding the proposed changes to stamp duty, including the consultation paper.

Payroll Tax

The Treasurer announced $2.8 billion in payroll tax relief to support jobs in NSW. This includes:
  • A permanent increase in the payroll tax-free threshold from $1 to $1.2m from 1 July 2020.
  • The payroll tax rate will be lowered from 5.45% to 4.85% from 1 July 2020 until 30 June 2022.
  • NSW businesses will also be eligible for payroll tax relief under the Job Plus Program where they create at least 30 new roles in NSW. This includes employees that relocate from overseas or interstate. 

Out and About Vouchers

  • Every adult resident in NSW can claim up to $100 in digital vouchers (four vouchers worth $25 each) via their MyServiceNSW account.
  • Two 'dining out' vouchers will be available and are restricted for use at venues that serve food.
  • Two 'going out' vouchers will be available for activities, such as visiting cinemas and amusement parks.
  • The vouchers cannot be used for alcohol, tobacco or gambling and will be available from January 2021.

  • For service providers to participate, businesses must have a MyServiceNSW account and be registered as COVID-safe.

Jobs Plus Program

The Jobs Plus Program was announced on 5 November 2020 as an incentive for employers to increase their headcount in New South Wales. 
  • Commencing on 15 December 2020 until 30 June 2022
  • Payroll tax relief for up to 4 years for every new job where a business creates at least 30 new jobs.
  • Details are limited around the specific requirements and the definition of 'net new jobs'.
For updates on the Jobs Plus Program click here

Other Measures

  • Small and medium sized businesses which do not pay payroll tax may be eligible to receive a $1,500 voucher for the cost of government fees and charges.
  • Up to $5,000 Return to Work Grant for training and support for women returning to the workforce.
Information on other measures and further detail on the NSW 2020-21 Budget can be found here.
If you are not on our mailing list please click here to subscribe.
Facebook
Website
Email
Copyright © 2019 FMA Partners, All rights reserved.
You are receiving this email because you are a client or have done business with FMA Partners before. 

Our mailing address is:
5/379 Port Hacking Road
Caringbah, New South Wales 2229

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

 






This email was sent to <<Email Address>>
why did I get this?    unsubscribe from this list    update subscription preferences
FMA Partners Pty Ltd · Suite 5 379 Port Hacking Road · Caringbah, NSW 2229 · Australia

Email Marketing Powered by Mailchimp