In its 2018-19 budget, the NSW government announced that from 1 July 2018, the payroll tax threshold would be gradually raised from $750,000 to $1 million by 2021-22.
The threshold will rise by $50,000 each year to hit $1 million by 2021-22 and is expected to absolve payroll tax burdens for “more than 5,000 businesses” that “will no longer have to pay the tax,” said NSW Treasurer Dominic Perrottet.
“Small businesses make up almost 98 per cent of all NSW businesses and employ almost 50 per cent of our workforce here in NSW – so it’s vitally important that those small operators are supported and given the very best chance of success,” he said.
According to KPMG’s Scaling the Fintech Opportunity report released August last year, NSW is home to 61 per cent of all fintech companies in Australia.
Commenting on the budget measures, The Invoice Market chief executive Angus Sedgwick said the tax relief would allow small businesses to put their tax savings into expanding their business.
“The new measures will help pave the way for growth, allowing small businesses to employ more staff before they become eligible for the payroll tax.”
“It should be a strong new financial year for the SME sector in New South Wales. I am optimistic about the opportunities and growth potential for SMEs,” Mr Sedgwick added.