NSW Treasurer Dominic Perrottet to cut payroll taxes as part of Covid help for businesses

Dominic Perrottet is finalising an economic recovery plan to institute new policies that will quickly boost economic activity when vaccination targets are reached.

Payroll tax cuts are set to be boosted for businesses with turnovers under $10 million until at least the end of the year as the NSW government stretches pandemic support into the summer.

It can also be revealed the NSW Treasurer is finalising an economic recovery plan in concert with the private sector to institute new policies that will quickly boost economic activity when vaccination targets are reached.

Dominic Perrottet hopes the strategy - with policies yet to be finalised but likely to stretch across property and hospitality - will restart the state’s economy in the lead up to Christmas.

Businesses eligible for a 2021 Covid-19 business grant or JobSaver with payrolls $10 million or less are set to be eligible for a 50 per cent reduction in their 2021-22 payroll tax up from 25 per cent, under a plan expected to be approved by cabinet’s expenditure review committee imminently.

All businesses are also expected to be able to further defer payroll tax payments due until January.

Treasurer Dom Perrottet says the NSW government is working on strategies to support businesses and jobs. Picture: Sam Ruttyn

The larger economic strategy is due to be outlined in early October, after the state releases its long awaited roadmap to reopening, with policies then factored into the budget’s half year review in early December.

There is about $1.2 billion in taxpayer-funded economic support being ploughed into NSW every week to keep the state afloat, across state and federal support.

“Summer is less than 100 days away and we are getting ready for NSW to fire-back up in time for Christmas,” Mr Perrottet told the Daily Telegraph.

“After a winter of disconnect we need to ensure the economy gets its sizzle back in time for summer.

“The Government is working on strategies to support businesses and jobs as we enter this next phase as vaccination targets are reached.”

Mr Perrottet is working directly with both the property industry and hospitality sector to seek ideas for kickstarter economic policies.

“The challenge will be ensuring support is timely and targeted and at the same time businesses can reopen safely and with confidence,” he said.

“Businesses and people are hurting, but their efforts to keep us safe through their actions, through getting vaccinated, shows a collective will not to be beaten by COVID.”

He said he was concerned the economic and human cost was “weighing just as heavily as the health costs on our shoulders.”