The 2020 NSW Budget – What you need to know

Key points

  • Today, the NSW Treasurer, Dominic Perrottet, released the NSW state budget
  • As expected, it’s another big spending budget, designed to try and spend NSW out of the COVID-19 induced downturn
  • Key announcements include $100 in vouchers for all adults to spend on hospitality and entertainment, continuation of the free pre-school program until the end of 2021, grants of up to $5,000 for women for training and support, a plan to replace stamp duty with annual property taxes and changes in payroll tax that should help small businesses

The Out and About program – $100 in hospitality and entertainment vouchers

Every adult in the state will be able to claim 4 $25 digital vouchers that can be redeemed in hospitality and entertainment venues (but they can’t be used for alcohol, tobacco or gambling). The vouchers are expected to be made available through the Service NSW app and will be available in early 2021. You’ll need to create a Service NSW account and download the Service NSW app (iOS or Android) to access your vouchers when they become available.

More information on the Out and About Program is available here.

Free preschool program will continue until the end of 2021

The NSW Government has extended is fee subsidies for community and mobile preschools until the end of 2021. Preschools that opt in for this support provide up to 15 hours of free preschool per week for families.

More information on the free preschool program is available here.

Grants of up to $5,000 for women for training and support to return to work 

The NSW Government will make grants of up to $5,000 available for women to help with training, mentoring, childcare and transport costs for women planning to return to work. Registration for the grants at Service NSW

More information on the Return to Work program is available here.

Public servant pay rises cut to 1% pa

NSW Public Servants usually receive a standard 2.5% pay rise each year. The budget confirmed this will be cut to 1.5%.

Replacing property stamp duty with annual land tax

The Government has announced a consultation process that will examine replacing property stamp duty with an annual land tax style charge. This is expected to make it easier for people to purchase property, especially in Sydney where average stamp duty on the purchase of a property is $34,000. This will take some time to go through the consultation process and be implemented.

Changes to payroll tax

Proposed changes to payroll tax will help businesses, especially small to medium businesses. The payroll tax threshold will be increased to $1.2 million. There will also be a temporary 2 year reduction in the payroll tax rate from 5.45% to 4.85% starting 1 July 2020. These measures should reduce outgoings for small business and make it just a little bit easier to keep people employed and working.

 

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