NSW budget: 10 key announcements for Small Business
NSW Treasurer Daniel Mookhey presented the 2023-2024 state budget, which introduced significant changes to the $700 million innovation fund and made cuts to the state's tourism promotion department and EV incentives. Here's a summary of the key points:
NSW gets a new building commission
This new commission will oversee the regulation, licensing, and oversight of the building construction industry to ensure high-quality housing and protect home buyers.
Rego rebates for apprentices
First and second-year apprentices will receive a $100 vehicle registration rebate.
Payroll tax remains as revenue surges
Despite calls to reduce the base payroll tax rate, the state government's revenue is projected to increase by $14 billion over the next four years, largely due to stronger payroll tax receipts.
$703 million Future Economy Fund is winding down:
The Future Economy Fund, which had a $703.4 million commitment in the 2022-23 state budget, will undergo a "reprofiling" and "reprioritisation". Unallocated grant funds from this will be used to support 1,000 new apprenticeships.
Cuts to Destination NSW budget
The government agency responsible for promoting tourism and events in the state has seen its revenue reduced from $382 million in 2022-2023 to $273 million in the 2023-2024 budget.
NSW Business Bureau is forming
This new body aims to assist small businesses with government regulations, procurement pathways, and grant applications. It will also help small businesses enter overseas markets.
Women’s Working Centre and Future Women’s Jobs Academy are being established
$13.8 million will be allocated to initiatives aimed at improving the participation and empowerment of women in the workforce.
Toll road relief for motorists, including truck drivers
Private motorists will have a new $60 weekly toll cap from January 1, 2024. Additionally, there will be a 33% cut to the truck toll multiplier on the M5 East and M8.
Changing duties on corporate reconstructions
The exemption for corporate reconstructions will be replaced with a concessional duty charged at 10% of the duty otherwise payable, effective from 1 February 2024.
EV strategy shake-up
From January 1, 2024, stamp duty exemptions and rebates for EV purchases will end. Changes are also expected in how EVs interact with the Road User Charge.
See https://www.budget.nsw.gov.au/ for more details
Federal budget measures already announced earlier in the year
These items listed in the NSW budget are above and beyond key measures to support small businesses announced by the Australian government in the 2023-24 federal budget, which included:
- Return of the instant asset write-off threshold to $20,000 for 12 months from 1 July 2023.
- $325 deduction on power bills for eligible small businesses.
- Up to $20,000 in bonus tax rebates per asset under the Small Business Energy Incentive scheme.
- $18.1 million to improve the ability for SMEs to compete for government procurement.
- Support for small enterprises to adopt artificial intelligence technologies.
- $392.4 million over four years to establish the Industry Growth Program to support Australian SMEs and startups.
- ACCC establishing a complaints mechanism for small business advocacy groups.
- Halving of the increase in quarterly tax instalments for GST and income tax in 2023–24.
- Lodgement penalty amnesty program for small businesses with aggregate turnover of less than $10 million.
- Tax agents can file multiple Single Touch Payroll forms on their clients’ behalf from mid-2024.
- Small business will have up to 4 years to amend their tax returns, from 1 July 2025.
These measures are designed to help small businesses reduce costs, improve efficiency, and grow their operations.