Coronavirus NSW Stimulus Package 2020

Camphin Boston | March 2020

On 27 March, the NSW Government announced further measures to keep people in jobs, help businesses stay afloat and the most vulnerable amid the COVID-19 pandemic. 

Key elements of the Stage 2 package include:

BUSINESS / HOUSEHOLD SUPPORT GOVERNMENT FUNDING/TAX CUTS
  • Establishing a Working for NSW fund to sustain business, create new jobs and retain employees (including 1000 new staff being announced for Service NSW).
$750 million
  • Payroll tax deferral for businesses with grouped Australian wages over $10 million for 6 months from the month of March 2020 (normally due on 7 April 2020) (up to $4 billion deferred).
  • Payroll tax deferral for businesses with grouped Australian wages of $10 million or less for 3 months, in addition to payroll tax waiver for 3 months (i.e. the rest of year ending 30 June 2020) in the first package.
 
  • Rents deferral for commercial tenants with less than 20 employees and not-for-profits in all government properties for 6 months.
 
  • Parking space levy deferral for 6 months. 
 
  • Gaming machine tax deferral for clubs, pubs and hotels for 6 months from the most recent quarter.
 
  • Duty deferral on lotteries and keno for 6 months including payments due from April 2020 to September 2020.
 

HELPING THE MOST VULNERABLE

 
  • Boosting the Energy Accounts Payments Assistance scheme.
$30 million
  • Boosting funding to prevent homelessness.
$34 million
  • Funding to support charities for food security.
$10 million
  • Additional funding for Lifeline’s operations in NSW.
$6 million

 

 On 17 March 2020, the New South Wales government announced its $2.3 billion economic stimulus package and health boost.

This package has 2 key components as follows:

BUSINESS SUPPORT GOVERNMENT FUNDING / TAX CUTS
Payroll tax waiver for businesses with grouped Australian wages of $10 million or less for 3 months (i.e. the rest of year ending 30 June 2020). I.e. 25% of their 2020 annual payroll tax bill will be saved. $450 million
Payroll tax cuts in the 2021 year by raising the payroll threshold to $1 million from $900,000. $56 million
Waiver of a range of fees / charges for small businesses including bars, cafes, restaurants and tradies. $80 million
Bringing forward maintenance on public assets including social housing and crown land fencing. >$250 million
Bringing forward capital works and maintenance. $500 million
Employing additional cleaners of public infrastructure such as transport assets, schools and other public buildings. $250 million

 

HEALTH BOOST   
Providing extra funding for NSW Health to double ICU capacity, prepare for additional COVID-19 testing, purchase additional ventilators / medical equipment, establish acute respiratory clinics and bring forward elective surgeries to private hospitals. $700 million

If you have any questions, please do not hesitate to contact one of our partners (Mark, Greg and Justin) or our tax director (Melanie).

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