Further to the various economic stimulus measurers announced by the Australian Government, the NSW Government has announced the following measures that will support businesses during this difficult time.

Payroll Tax

Businesses with wages over $10 million

Businesses whose total grouped Australian wages for the 2019/20 financial year are over $10 million, will have the option of deferring the payment of payroll tax for up to six months.

These businesses will not need to make their payment for the March period, normally due on 7 April 2020.

Businesses with wages under $10 million

Businesses whose total grouped Australian wages for the 2019/20 financial year are no more than $10 million will have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July 2020.

For those businesses who lodge and pay monthly and whose total Australian wages will be no more than $10 million for the current financial year ending 30 June 2020, no payment for the months of March, April or May 2020 will be required.

These businesses will also have the option of deferring these payments for an additional three months.

When lodging your annual payroll tax reconciliation, you will still need to provide wage details paid in these months and will receive the benefit of a 25% reduction in the amount of tax you would have had to pay for 2019-20.

Threshold Increase

The tax-free threshold will increase from $900,000 to $1 million for the financial year commencing on 1 July 2020.

Land Tax

While there is currently no moratorium on land tax, Revenue NSW has put in place a number of measures to assist taxpayers, such as extending deadlines for payments and applying leniency for late payment.

Applications for an extension, or an instalment plan, can be made via Revenue NSW’s website.

If the instalment plan cannot be approved online, you will be notified, and contacted by the Tax Debt team to discuss your application.

Parking Space Levy

Parking space levy payments will be deferred until 30 September 2020. This is a saving for anyone who owns or rents a commercial parking space and tenants should contact their landlords to discuss passing on this saving to the tenant.