Expert Knowledge You Can Trust
COVID-19
NSW Government Stimulus Package Summary
STIMULUS 4
1. 25% Land Tax Concession
Effective: 31 December 2019
– Eligible landlords will be able to apply for a land tax concession of up to 25 per cent of their 2020 (calendar year) land tax liability on relevant properties.
– Commercial landlords will be offered the land tax concession if they pass the savings on to financially distressed tenants through a rent reduction, where those tenants turnover up to $50 million and suffer a downturn in income of at least 30%.
– Rent relief must be passed on to tenants at any time between 1 April 2020 an 30 September 2020 without the requirement to be paid back at a later date.
– A further land tax deferral for any outstanding amounts for a three-month period will also be offered to landlords who claim the land tax concession.
– Applications are available through Service NSW
STIMULUS 3
Friday 3 April 2020:
1. $10,000 Small Business Grant
Effective: 17 April 2020 until 1 June 2020
– $10,000 grants to eligible NSW small businesses that have been subject to closure or are highly impacted by NSW Government health directions in relation to COVID-19, as follows:
⋅ Retail trade
⋅ Accommodation and food service
⋅ Rental, hiring and real estate services
⋅ Administrative and support services
⋅ Arts and recreation services
⋅ Other businesses with at least a 75% reduction in revenue for a minimum 2 week period since 30 March 2020 and supported by a letter from your accountant
– Eligibility:
⋅ a business highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020 (refer some industries above);
⋅ turnover of more than $75,000;
⋅ employ between 1-19 employees
⋅ annual payroll less than $900,000;
⋅ have an Australian Business Number (ABN) as at 1 March 2020,
⋅ based in NSW and employ staff as at 1 March 2020;
⋅ use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
⋅ provide appropriate documentation upon application.
– Applications will be available through Service NSW by 17th April 2020 and will remain open until 1 June 2020.
STIMULUS 2
Friday 27th March 2020:
1. NSW Payroll Tax
Effective: March 2020 or until end of financial year
– NSW Payroll Tax concessions have been extended for six (6) months until October 2020
– Businesses annual payroll tax liability reduced by 25% if all Australian wages paid or payable by the employer are $10 million or less (annual reconciliation due 28 July 2020)
– Monthly lodgers and payers will not have to pay for the months of March, April or May 2020 (with potential to defer for an additional three months)
– Large businesses >$10 million in Austalian wages will have the option to defer payments for 6 months.
2. Other small business support
– Deferral of gaming tax for clubs, pubs and hotels until 1 September 2020, and lotteries tax for six (6) months to 30 September 2020, conditional on these funds being used to retain staff.
– Deferral of the parking space levy for six (6) months to 30 September 2020
– Deferral of rents for six (6) months for commercial tenants with less than 20 employees in all Government-owned properties
– Land Tax instalment plans
– Emergency cleaning contracts to small and medium sized businesses to supplement current Government Contracts
– Currently operational taxis will receive a $2,900 subsidy per vehicle with applications made available from June 2020
– Electricity and Gas subsidies for Small Business’ that are temporarily closed
– Creative Kids digital small business grant of $5,000 to assist with adapting kids to the online learning programs environment.
– There are a wide range of other measures announced in other states and we will contact our clients individually on these measures where applicable
STIMULUS 1
1. NSW Payroll Tax
Effective: 1 July 2020
– NSW Payroll Tax threshold will raise to $1m
2. Other small business support
– Waiver of a range of fees and charges for small business including bars, cafes, restaurants and tradies. More information to come. We will continue to update this information as it becomes available
– There are a wide range of other measures announced in other states and we will contact our clients individually on these measures where applicable
