When Dominic Perrottet delivered the state budget it was dominated, as expected to some extent, by financial support for the health and emergency response sector. With Covid still hanging around, creating a sense of lingering unpredictability, NSW it seems, is still looking to the Federal Government to provide ‘big ticket’ support to Australians, and small businesses.
By ATB Partners
With that said, there are some key initiatives from the State Government to support the sector, and this is good news. Here’s what you need to know.
1. Payroll Tax cuts
The State Government is continuing payroll tax cuts. They will remain at 4.85% for another year, and the payroll tax-free threshold will stay at $1.2 million.
2. Shorter payment times for small business suppliers
The Government is also introducing a new Small Business Shorter Payment Terms Policy. This reflects similar legislative changes being introduced at a Federal level and it essentially means that large businesses that contract to supply goods or services to NSW government agencies to pay their small business subcontractors within 20 business days. This means that these small businesses will have a lot more certainty around cash flow.The policy, which starts from July 1, will apply to goods and services contracts valued at more than $7.5 million.
3. More support for regional SMEs
Along with faster payment times, the NSW budget includes an updated policy designed to increase the number of small and regional businesses which state government agencies procure from. The crux of this is that government agencies will have to consider SMEs first, for procurements up to $3 million, and will also require suppliers that tender for contracts larger than $3 million to submit a binding SME and local participation plan.
The current budget includes a focus on boosting regional areas across the state with an investment in schools, hospitals and roads, as well as specific funding for the agricultural sector.
4. $1500 fees and charges rebates
The fees and charges rebate scheme helps small businesses to cover the cost of both NSW and local government fees and charges. Small businesses with a total wages bill below the 2020-21 $1.2 million payroll tax threshold are eligible to apply for a $1500 rebate on NSW state and local government fees.
5. Tourism and Hospitality Sector
The NSW government has extended the existing Dine & Discover programme, and the will introduce a new $50 million CBD Friday voucher program along similar lines, which is set to kick off later in the year.Accommodation vouchers are also continuing to encourage New South Wales residents to travel within the state.
The Government is also putting an injection of cash into the events sector to entice major arts and tourism events to NSW.
6. Funding for the NSW Small Business Commission
The NSW Small Business Commission will receive $13 million to continue assisting the state’s 800,000 small businesses that collectively employ 1.6 million people.This is a good initiative, particularly the mediation and advocacy services for those businesses that unwittingly find themselves in the middle of disputes and need advice. If you are running a small business, it’s worthwhile familiarising yourself with how the Commission works and the services it offers. It is often a great starting point for information and resources.
If you’d like more information about any of these NSW State Government initiatives, please feel free to contact us.