COVID-19: Stage 2 of NSW Economic Stimulus Package
On 27 March 2020 the New South Wales Government released the second stage of its economic package aimed at keeping people in jobs, helping businesses and supporting the most vulnerable during the COVID-19 crisis. The package supplements the first stage announced on 17 March 2020.
The key elements of this package are to provide for the deferral of payment of payroll tax liabilities and other state based taxes and levies.
DEFERRAL OF PAYROLL TAX
Employers will be eligible to defer their payroll tax liabilities for periods up to six months.
Employers whose total grouped Australian wages for the 2019-20 financial year exceed $10 million will be able to defer their NSW payroll tax liabilities for six months. The deferral will apply to the payroll tax liabilities arising in the months of March to August 2020, inclusive.
Employers whose total grouped Australian wages for the 2019-20 financial year are no more than $10 million will be entitled to defer their NSW payroll tax liabilities for the months of July to August 2020, inclusive. These employers are already entitled to a waiver of their payroll tax liabilities for the period March to May 2020 under the first stage of the economic package announced on 17 March 2020.
Eligible businesses must still continue to lodge their monthly payroll tax returns without making payments by the due dates.
DEFERRAL OF OTHER STATE TAXES
There will be a deferral of the following taxes for six months:
- Gaming tax for clubs, pubs and hotels; and
- Lotteries tax.
The deferral is conditional upon the funds from the deferral being used to retain staff.
The intention of the deferral is to improve liquidity and help the businesses stay afloat as a result of the closures form COVID-19.
The NSW Government has also announced the following deferrals for six months:
- Deferral of parking space levy; and
- Deferral of rents for commercial tenants with less than 20 employees in all Government-owned properties.
The NSW government also announced other measures to assist the most vulnerable. This comprises of:
- $34 million boost in funding to prevent homelessness;
- $30 million to boost the Energy Accounts Payments Assistance scheme;
- $10 million to support charities; and
- $6 million additional funding for Lifeline’s operations in NSW.
If you would like assistance please speak to your usual Mazars advisor or alternatively our specialists below:
Brisbane – Jamie Towers
Melbourne – Evan Beissel
Sydney – Gaibrielle Cleary
+61 7 3218 3900
+61 3 9252 0800
+61 2 9922 1166
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.
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