State government stimulus a welcome response

The Illawarra Business Chamber has welcomed this morning’s announcement that the NSW Government will deliver a $1.6 billion business stimulus package, designed to keep people in jobs throughout the coronavirus crisis.

The centrepiece of the package is a three-month payroll tax waiver for businesses with payrolls of up to $10 million, a measure that has been championed strongly by the Illawarra Business Chamber and its state counterpart, Business NSW, over the preceding weeks.

“The government has listened to our call for action on payroll tax, which is the most effective means of providing relief to small-to-medium sized enterprises in the current, evolving environment,” said Adam Zarth, Executive Director of the Illawarra Business Chamber.

“The preservation of business and consumer confidence during the months ahead as we respond to the challenges presented by COVID-19 is critical, and we have pressed hard for economic stimulus measures at a state level to accompany those announced last week by the Commonwealth.”

“This package will help protect jobs during what will be a period of significant disruption, and this is vital recognition from the government that small businesses are the drivers of our economy and they have the most to lose from the fallout of COVID-19.”

“Consumers need confidence about their employment prospects, and businesses need confidence that they will be supported to keep their current workforce employed.”

“Things will ultimately return to normal, and this package contains measures to help limit the economic damage over the short to medium term,” said Mr Zarth.

Key measures include:

  • $450 million for a three-month waiver of payroll tax for businesses with payrolls of up to $10 million (for three months).
  • $56 million to bring forward previously announced payroll tax cuts (tax-free threshold will increase to $1 million in 2020-21).
  • A deferral of payroll tax for the rest of 2019-20 for businesses with a payroll of up to $10 million.
  • $80 million to waive a range of fees and charges for small businesses.
  • $250 million to employ additional cleaners of public infrastructure (including schools and public transport).
  • $250 million to bring forward maintenance on public assets (including social housing).
  • $500 million to bring forward capital works and maintenance.

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