The recent 2021 State Budget Announcements in NSW have included State Tax relief proposals and other measures that may provide financial assistance to taxpayers, and stimulate local economic activity.
Firstly, there will be a reduction in payroll tax from 5.45% to 4.85% for the 2020/21 and 2021/22 financial years. The payroll tax threshold will increase from $1 to $1.2 million for 2020/21 and subsequent financial years – which will apply from 1 July 2020.
Secondly, the land tax COVID-19 relief will be extended to 28 March 2021 for retail landowners, and is available where the lease is a retail lease, the annual turnover is less than $5 million, and the tenant has re-established eligibility by demonstrating a 30% decline in turnover for the December quarter 2020.
Lastly, the NSW Government is undertaking a public consultation process for proposed changes to the property tax system. The reforms consider giving home and property buyers the choice to pay stamp duty and land tax, or alternatively, a new annual property tax, to commence in the later half of 2021.