Coronavirus NSW: $2.3 billion stimulus package to bolster business, jobs and health
A $2.3 billion state government stimulus package will waive payroll tax for small business to save jobs, bolster NSW’s health system, invest in state infrastructure maintenance to keep the economy going and include a portion for the cleaning of public assets such as schools, trains and buses.
NSW
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Small business payroll tax will be waived to save jobs and health spending boosted to save lives in a mammoth $2.3 billion state government stimulus package.
It also includes new investment in state infrastructure maintenance to keep the economy going — and even a huge $250 million for the cleaning of public assets such as schools, trains and buses.
Almost a third of the package — $700 million — is exclusively dedicated to bolstering NSW’s health system.
This will be targeted at doubling the state’s ICU capacity, providing extra COVID-19 testing, buying more ventilators, establishing acute respiratory clinics and bringing forward elective surgeries to private hospitals.
The remaining $1.6 billion will be spent in tax cuts and targeted measures to support jobs.
The funding will be rolled out within six months to ensure the package supports the state when it needs it most.
The investment will effectively wipe out the state’s Budget surplus — projected in December to be $702 million — which was already likely to take a hit from the spend on bushfires.
Premier Gladys Berejiklian signed off on the package late on Monday after facing mounting pressure over the government’s slowness in announcing measures.
The business element of the package sets aside $450 million for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months.
The government will also bring forward the next round of payroll tax cuts, raising the threshold limit to $1 million in 2020-21. An additional $80 million is set aside to waive other fees and charges for small businesses.
The government will also spend $250 million on extra cleaners of public infrastructure including transport assets and schools.
Maintenance of public assets will also be fast-tracked to the tune of $250 million and another $500 million has been set aside for capital works and maintenance.
The Premier said the package would secure jobs, boost the health system and support businesses at a challenging time.
“Our first priority is always the health of the people of this state and looking after their families and jobs,” Ms Berejiklian said. “This package works hand-in-hand with the recent moves by the Reserve Bank of Australia and the federal government. It will provide more resources to help slow the spread of this virus and boost treatment for those people in our community who need it most.”
NSW Treasurer Dominic Perrottet said businesses were struggling with a once-in-a-generation event.
“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,” he said.
“The government stands ready to do whatever it takes to keep people safe and ensure our economy withstands this storm.”