This article refers to the first NSW stimulus package. Additional measures have since been announced and are available here.
New South Wales, currently the Australian state worst affected by the COVID-19 outbreak, has announced a state government stimulus package encompassing health and economic measures worth $2.3 billion.
Some $700 million will be spent on boosting the capacity of intensive care units throughout the state, while $1.6 billion is being pledged to help keep people in jobs, and to support small business.
The New South Wales stimulus offers support additional to what’s offered in the federal government’s stimulus, released last week.
“This package works hand-in-hand with the recent moves by the Reserve Bank of Australia and the federal government,” Premier Gladys Berejiklian said in a statement.
The federal government is also reportedly working on expanding measures for industries most at risk as the economic fallout continues, with a second package expected to be finalised by the end of the week.
Payroll tax waived
Probably the most significant measure for small business is $450 million allocated to waive payroll tax for the next three months, or until the end of the financial year.
This will be available for all businesses with payrolls of up to $10 million.
The waiver will be additional to other benefits laid out in the federal government’s stimulus.
While it is not currently clear, it is expected that the payroll tax exemptions will be applied automatically.
The government is also bringing the next round of payroll tax cuts forward, meaning the payroll tax threshold will rise to $1 million in the financial year 2020-21.
A spokesperson for New South Wales treasurer Dominic Perrottet told SmartCompany new legislation will be required to implement these measures, and that more detail on the payroll tax relief will be provided “in the coming days”.
The New South Wales government is also scrapping certain fees and charges that apply to businesses in vulnerable sectors.
These include fees for bars, cafes, restaurants and tradespeople.
The total allocated for this measure is $80 million, but it is not yet clear exactly which fees will be waived, or for how long.
The spokesperson said this measure will be administered through Service NSW, and the waiver will be communicated via that channel.
The state government has pledged $250 million to employ additional cleaning staff for public infrastructure, such as public transport assets, schools and public buildings.
Not only will this help keep those who have no choice but to travel to work safe, it may provide a welcome boost for self-employed people in this sector, or for small cleaning companies.
Similarly, the government has announced $250 million to spend on fast-tracking the maintenance of public assets, including social housing and fencing, as well as $500 million to bring forward capital works and maintenance.
Again, it’s unclear how these contracts will be managed, but the spokesperson for the treasurer confirmed the measure is intended to provide opportunities “for businesses of all sizes,” and to create employment.
This story was updated at 2pm on March 19. We will continue to update as more information becomes available.
You can help keep SmartCompany free for everyone to read
Small and medium businesses and startups have never needed credible, independent journalism and information more than now.
That’s our job at SmartCompany: to keep you informed with the news, interviews and analysis you need to manage your way through this unprecedented crisis.
Now, there’s a way you can help us keep doing this: by becoming a SmartCompany Supporter.
Even a small contribution will help us to keep doing the journalism that keeps Australia’s entrepreneurs informed.
And it’s not all one-way traffic either. SmartCompany Super Supporters get to dial into our monthly editor’s meeting and attend a monthly, invite-only webinar with a big-name entrepreneur.