Payroll tax relief announced last week in the 2020-21 NSW Budget has been welcomed by State Hawkesbury MP Robyn Preston
The tax relief will hopefully provide the opportunity for businesses to hire more staff, keep their doors open and focus on recovery in the post-pandemic world.
On average, businesses liable for payroll tax could save around $34,000 a year over the next two years, which could be reinvested into additional staff, with the median part-time wage equivalent to about $29,500 in NSW.
Ms Preston said the tax savings would have a major impact on businesses, enabling employers to offer increased working hours to staff, or hire additional workers.
"This important measure will greatly assist our local businesses in the Hawkesbury to recover from what has been a very difficult time," she said.
Treasurer Dominic Perrottet said the payroll tax rate would be cut from 5.45 per cent to 4.85 per cent for a two-year period, and will be backdated to July 1, 2020, along with the threshold being permanently increased from $1 million to $1.2 million.
"This is a budget that looks to the future," said Mr Perrottet. "And the significant payroll tax relief announced today will be a real boon to businesses that have faced the triple crises of drought, bushfire and now COVID-19.
"Our $2.8 billion Budget measure will pave the way for thousands of jobs across the State and kick-start the State's dynamic recovery, cementing us as the economic engine room of the nation."
About 5,000 businesses became exempt from paying payroll tax following a 2017 Government decision to increase the threshold from $750,000 to $1 million.
It is estimated a further 3,500 businesses will be exempted with the decision to increase the threshold from $1 million to $1.2 million.