As a result of the coronavirus outbreak in NSW and a decline in economic activity throughout the state, on 17 March 2020, the NSW government announced its own $2.3 billion coronavirus stimulus package which includes direct efforts to assisting small businesses.
Out of the $2.3 billion, $700 million will go into health funding, while the rest will be for economic stimulus, mainly through financial assistance for small businesses. As per the ATO’s announcement, much of the stimulus package’s budget will go towards tax relief options for small businesses which are most likely to experience cashflows problems as a result of the coronavirus and a corresponding drop in demand.
Of the remaining $1.6 billion for economic stimuli, $450 million will go to remitting payroll tax for businesses with payrolls of up to $10 million. Currently, the payroll threshold sits at $1 million.
Capital works and maintenance projects are also set to be brought forward by the NSW government, although nothing specific has been announced.
Businesses in industrial trades, as well as cafes, bars and restaurants, are eligible for tax relief as well, with $80 million out of the coronavirus stimulus package dedicated to cancelling or postponing regular business fees and charges.
The NSW government is also looking to increase job opportunities, with more than $250 million going towards hiring more cleaners for public buildings, including schools.
For more details on such tax relief options, businesses are encouraged to contact the ATO personally to discuss their specific circumstances so that the correct tax relief options are applied to eligible businesses.