Hospitality businesses in New South Wales have received a double boost this week, with the State Government announcing that it will be cutting payroll tax and also extending its Easy to do Business program.
The changes to the payroll tax system will see around $881m returned to small businesses over the next four years. The NSW Government has pledged to lift the current payroll tax threshold from its current level of $750,000 to $1m by 2021-22.
The threshold, the point at which companies start paying payroll tax, will rise to $850,000 in 2018-19, $900,000 in 2019-20, $950,000 in 2020-21 and $1m in 2021-22. The Government has claimed that the changes will mean nearly 40,000 businesses will save up to $5,450 each in 2018-2019 and up to $13,625 per business in 2021-22.
“Business is the lifeblood of our economy and this Government is committed to ensuring that NSW is the best place to do business,” NSW Treasurer Dominic Perrottet said.
“Businesses that consistently have payrolls over $1 million will save more than $120,000 over the next decade from the lifting of the payroll tax threshold, which is money that can be reinvested back into businesses.”
Minister for Small Business John Barilaro said raising the threshold would take immediate pressure off businesses who are looking to grow and expand their workforce.
“This time last year, through the Small Business Strategy, we committed to looking at options to alleviate the pressure of taxation for businesses. 12 months later we have a commitment to lift the payroll taxation threshold to achieve just that,” Mr Barilaro said.
As well as lifting the payroll tax threshold, the NSW Government has also announced that it is extending its Easy to do Business program, which will be delivered with $95.9m from the Commonwealth Government’s Project Agreement for Small Business Regulatory Reform.
In a boost to the state’s hospitality industry, the Easy to do Business program, which has proved successful in pilots, will see the Commonwealth funding used to enable accelerated rollout across New South Wales in order to help cafes, restaurants and small bars during the start-up phase and beyond.
Barilaro said the extra funding will allow the NSW Government to expand the award-winning Easy to do Business program which slashes the time it takes to open a business. “The Easy to do Business pilots have slashed red tape by cutting the time, cost and complexity of starting up a cafe, restaurant or small bar.
“Instead of waiting up to 18 months and filling out up to 48 forms, an aspiring cafe, restaurant or small bar owner can expect to open in less than 90 days by using one online platform and with the help of a Service NSW Business Concierge.”
He added: “The NSW Government is committed to making this State the easiest place to start and run a small business by removing barriers, costs and complexity.
“The Commonwealth’s financial support will allow us to do more on all fronts to help our small businesses thrive.”