On 17 November 2020, NSW Treasurer, Dominic Perrottet announced tax initiatives designed to boost the economy during these unprecedented times. After almost a decade of economic surplus, NSW has a hit a record low $16 million budget deficit.
The proposed initiatives from the Treasurer were included in the 2020-2021 state budget, with a reform focus on Businesses and First Home Owners. Read below for a summary of the key points you need to know.
Stamp Duty or Annual Property Tax
A choice between an upfront Stamp Duty fee, or a smaller Annual Property tax
The Annual Property Tax would be an ongoing fee
Could be a great option for anyone wanting more flexibility to move houses to be closer to work or schools
The proposed Annual Property Tax percentage has not yet been determined
First Home Buyers
* An (illustrative) estimated growth rate of 3.8% per year has been applied to the property tax payment.
Planning to Buy Another Home
* Shown as the average annual payment over the three year period.
Tables Sourced From: NSW Treasury, 2020. What Could This Mean For You? (Online Article). Accessed on 19/11/2020. Available From: https://www.treasury.nsw.gov.au/budget-financial-management/reform/nsw-property-tax-proposal/what-could-mean-you
For more information on how the proposed Annual Property Tax may impact your specific circumstance, please visit the NSW Treasury article link in the source credit above.
Reduction in payroll tax rate and increase in threshold
Payroll tax rate reduced from 5.45% to 4.85%
Threshold permanently increased from $1 million to $1.2 million
Small businesses currently not paying payroll tax, will be given vouchers of $1,500 to spend on government and council fees/charges
Hospitality / Art & Tourism Vouchers
Every adult will receive 4 x $25 digital vouchers
The vouchers can be spent at eateries and on Art or Tourism attractions
This is a $500 million project to assist businesses in these sectors
Over the next 5 years, NSW will spend $29.6 billion on the pandemic response
A vaccine is predicted to be released in mid 2021
An estimated 20% of NSW residents will be vaccinated in 2021
Social distancing restrictions will continue until a vaccine is widely available
$4.4 billion committed to bushfire response
$4 billion committed to drought relief
How Can I Speak with an Accountant to Understand More?
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