The NSW Government has announced that it will provide an economic stimulus package worth $2.3 billion dollars to safeguard the community from the Coronavirus outbreak and protect jobs over the next six months.
The package is comprised of two main components. One is $700 million in extra health funding; the other is $1.6 billion dollars in tax cuts to support jobs.
The Premier has maintained that this stimulus is being delivered in line with various measures exercised recently by the Reserve Bank of Australia as well as the Federal Government.
The Health Boost
The $700 million in extra funding for NSW health will go towards various measures. These include:
- Doubling the capacity for hospitals to provide intensive care units;
- Preparing for additional Covid-19 testing;
- Purchasing additional ventilators and medical equipment;
- Establishing acute respiratory clinics; and
- Bring forward elective surgeries to private hospitals.
Tax cuts for business support and jobs
The $1.6 billion in tax cuts to support jobs will be exercised in the following ways:
- $450 million will go towards a waiver for business operating with payrolls of up to $10 million for three months (the rest of 2019-2020 Financial year). This particular measure provides businesses with savings worth a quarter of their annual payroll tax bill for 2019-2020.
- $56 million dollars to bring forward the next scheduled payroll tax cuts which raises the threshold limit to $1 million in 2020-21.
- $80 million to waive various fees and charges for small business including restaurants, bars, cafes, tradies.
- $250 million for employment of additional cleaners of public infrastructure such as schools, public buildings and transport assets items; and
- $500 million to bring forward capital works and maintenance.
NSW treasurer Dominic Perrottet stated: “We are supporting business by lowering their costs through tax cuts and fee reductions, and working to boost jobs by funding ready-to-go capital work and maintenance projects as a priority.”
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.