NSW support measures, plus update for payroll tax.

A combination of information from the 13-7-21 and the 26-7-21.

Payroll tax update:

All NSW businesses that have a payroll tax liability will now have the option of deferring lodgement and payment of their 2020–21 annual reconciliation until 7 October 2021.

Businesses that are required to lodge monthly returns will also have the option of deferring their returns due in August and September until 7 October 2021.

Those who choose to defer their payments will also be eligible for an interest-free payment plan of up to 12 months.

The NSW government will also grant businesses with wages between $1.2 million and $10 million a 25 per cent reduction of their 2021–22 payroll tax if they have experienced a 30 per cent decline in turnover.

“We know the effects of restrictions are being felt right across the state and that’s why we have ensured that all payroll tax customers are able to take advantage of the deferral and repayment options, regardless of size or geographical location,” NSW Finance and Small Business Minister Damien Tudehope said.

“We want to free up cash for businesses at a time when businesses are doing it tough, by waiving or deferring their tax.”

The state’s payroll support is part of its $4 billion support package, which includes the 2021 COVID-19 business grant, the JobSaver payment and the micro-business support grant.

New NSW support measures as at 13-7-21

Businesses in NSW can now expect new support payments and larger grants, while individuals are set to receive increased disaster payments as the state battens down the hatches in the face of an extended lockdown.

A list of key measures announced so far:

New business support payments:

• A new direct payment to be made available to entities with an annual turnover between $75,000 and $50 million who can demonstrate a 30 per cent decline in turnover compared with an equivalent two-week period in 2019.
• Eligible entities will be required to maintain their full-time, part-time and long-term casual staffing level as of 13 July.
• Eligible entities, which include not-for-profits, will receive payments of between $1,500 and $10,000 per week based on the level of their payroll.
• For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week.
• The payments will be administered by Service NSW, with registrations of interest to open on Wednesday, 14 July.

Expanded business grants, payroll support, tax relief:

• Eligible businesses with wages below $10 million can claim grants between $7,500 and $15,000 to cover the first three weeks of restrictions.
• A new $1,500 per fortnight payment for micro-businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30 per cent.
• Payroll tax waivers of 25 per cent for businesses with wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover.
• A capped grant of up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants estimated at $210 million.
• Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability.
• A short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25 per cent due to COVID-19 and meets a range of criteria.
• Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2022.

Individuals:

• From 18 July, the COVID-19 Disaster Payment will increase from $500 to $600 each week if a person has lost 20 hours or more of work a week, or $325 to $375 each week if a person has lost between 8 and 20 hours of work.
• The payment will be made available to NSW individuals outside Commonwealth-declared hotspots in Sydney if they have lost hours and satisfy the eligibility criteria.
• The payment will be a recurring payment for approved recipients for as long as the Commonwealth-declared hotspot and lockdown restrictions remain in place. This will remove the need for recipients to re-claim for each seven-day period of a lockdown.

The full eligibility criteria for both the business and individual support measures are currently being developed by Service NSW and Services Australia, with the information provided above current as of 13 July.

Jotham Lian  26-7-21 and 13-7-21
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