Nearly 40,000 small businesses in NSW are now up to $8,175 better off per year following a second cut to payroll tax in 12 months.
The payroll tax bracket was lifted from $850,000 to $900,000 on July 1, as the NSW Government progressively raises the threshold from $750,000 to $1 million by 2021-22.
NSW Treasurer Dominic Perrottet said businesses would receive a boost to their bottom line in coming months with the latest change meaning businesses paying payroll tax could save up to $2,725.
“The savings benefit thousands of businesses across NSW and will mean total savings of around $880 million by the time the full effect of the changes come in to effect in 2021-22,” Mr Perrottet said.
“Not only are tens of thousands of businesses paying less payroll tax, around 3,000 businesses no longer have any payroll tax liabilities following the changes, this means they also avoid the cost associated with bookkeeping.
“This number will increase to about 5,000 by 2021-22 as more businesses fall out of the payroll tax bracket completely.”
Minister for Small Business Damien Tudehope said the NSW Government was always looking for ways to support small business owners.
“Small businesses are the lifeblood of the NSW economy, employing about 50 per cent of the total NSW workforce and generating close to $51 billion in annual wages,” Mr Tudehope said.
“We want small businesses to grow and thrive, hire more people and invest in their staff.”
Since 2016-17, the Government has delivered over $5 billion in tax cuts to NSW households and businesses, and is continually examining ways to improving the tax framework to better support job creation and give local businesses more freedom to grow.
“The Government is committed to ensuring that NSW taxes are as low, as fair, and as simple as possible,” Mr Tudehope said.