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The NSW Government has announced its own $1.6 billion coronavirus stimulus package – including payroll tax exemptions for small business

James Hennessy
  • The NSW government has announced its own stimulus effort in response to the coronavirus outbreak.
  • It includes increased health funding and tax relief for small businesses which are expected to see a downturn thanks to sharply reduced demand..
  • "Our first priority is always the health of the people of this state and looking after their families and jobs," said Premier Gladys Berejiklian.
  • Visit Business Insider Australia's homepage for more stories.

The New South Wales Government has launched its own $2.3 billion stimulus effort to fight the coronavirus-led downturn, including payroll tax exemptions for business and funding for the health sector.

"Our first priority is always the health of the people of this state and looking after their families and jobs," said Premier Gladys Berejiklian.

"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."

An initial $700 million will go to health funding, including doubling the state's intensive care capacity, the purchase of needed equipment like ventilators, and testing for the coronavirus.

The remaining $1.6 billion will be for economic stimulus, in the form of tax relief for small businesses likely to experience cashflow problems due to the drop in demand led by the coronavirus.

Of that figure, $450 million will go to waiving the payroll tax for businesses with payrolls of up to $10 million. At present, the payroll tax threshold is $1 million.

Restaurants, cafes, bars, and those in trades are set for relief too, with $80 million dedicated to waiving a variety of current fees and charges. $250 million will go towards hiring more cleaners for public buildings including schools.

The NSW government will also bring forward a number of capital works and maintenance projects.

As of Monday, there were 171 cases of coronavirus in NSW, including 37 new cases.