Brendan Lucas

The COVID-19 pandemic has significantly impacted all levels of society over the past 18 months. While the NSW Government implemented multiple response measures to assist people and businesses throughout the pandemic, the recently released COVID-19 Economic Recovery Strategy sets the scene for future growth and opportunity.

This update outlines key strategy components that may offer opportunities for businesses and not for profit organisations.

The economic recovery strategy has three key objectives:

Securing a strong rebound

The Government’s first objective is to secure a strong rebound through targeted stimulus and support measures to encourage economic activity, build confidence, and support job restoration and creation:  

• $250 million to support jobs and skills, including help for job seekers to retrain or upskill.  
• $500 million to restore consumer and business confidence by expanding the Dine & Discover voucher program and introducing a Stay & Rediscover accommodation voucher.
• $212.2 million to boost vital sectors of our economy, including additional funding for the performing arts sector, an Alfresco Restart Package, and support to bring our cities back to life.
• $75 million to boost communities across the state, including support for tourism, events, sport, and recreation.
• $200 million to boost regional NSW, including support for events, facilities and local infrastructure, and housing.
• $5 billion for the creation of WestInvest – a fund targeted at improving infrastructure and livability across Western Sydney.

Targeted and timely support

The second objective is to ensure the sectors and communities who have suffered hardest in the recent outbreak have timely and targeted support to get back on their feet and grow stronger.

• $130 million for a mental health recovery package to provide immediate access to help for anyone whose mental health has been impacted by the COVID-19 pandemic.
• $495 million in education support to address learning gaps for children in need and to help schools adapt to future possible learning disruptions.
• $739.3 million in household and social support, including housing support for vulnerable Aboriginal communities, expansion of solar rebates, support measures for domestic and family violence victims, and vouchers to parents who have facilitated home learning for their children.
• Support for business sectors still under pressure, including Event Saver to support event organisers and expansion of the small business rebate for fees and charges to include road tolls.

Coming back stronger

The third objective will build a better future for all of NSW and pursue new economic opportunities.

• Supporting the further development of existing industries, such as the theatre and film sector.
• Building the capabilities to support new opportunities such as an RNA research and manufacturing industry.
• Reducing red tape to make it easier to run a business in NSW while ensuring customers are protected.
• Support for our First Nations communities, including investing in the Aboriginal Community Housing Investment Fund and greater employment pathway opportunities for Aboriginal and Torres Strait Islander students.
• Improving livability with investment in new open spaces and outdoor recreation.
• Boosting workplace participation by identifying barriers to women’s economic participation and reform opportuneness.

If you would like to review the strategy you can download the document here.

We will continue to monitor the finer details of these strategies as they are released over the coming weeks and highlight opportunities as they become available.

From 1 November 2021, if you have new employees start, you may have an extra step to take to comply with choice of fund rules if they don’t choose a super fund. You may now need to request their ‘stapled super fund’ details from the ATO.

A stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs.

You may need to request stapled super fund details when:

• your new employee starts on or after 1 November 2021
• you need to make super guarantee payments for that employee, and
• your employee is eligible to choose a super fund but doesn’t.

You don’t need to offer a choice of super fund to some employees, but you may still need to request their stapled super fund details. This includes employees that are either:

• temporary residents
• covered by an enterprise agreement or workplace determination made before 1 January 2021.

You can find out more information here. Please get in touch to discuss if required.

NSW Payroll tax deferral

You have the option of deferring their payroll tax payments until 14 January 2022.

You are still required to lodge the 2020/21 annual reconciliation by the due date which has been extended to 14 January 2022.

In addition, you have the option of deferring your monthly payments for the July to December 2021 return periods until 14 January 2022.

After lodging your 2021 annual reconciliation, you will have the option of paying all outstanding liabilities in full or entering a new Support Payment Arrangement.

If you choose to enter into a 2021 Support Payment Arrangement, you will have the option to include tax payable from the 2020/21 annual reconciliation and any monthly liabilities for the July to December 2021 return periods.

More information on how to establish a 2021 Support Payment Arrangement will be provided in November 2021.

Existing 2020 Stimulus Payment Arrangements

The due dates for any Stimulus Payment Arrangement payments remain unchanged. If you are experiencing difficulty in making a payment, please contact us and we can liaise with Revenue NSW on your behalf.

Tax Debt Instalment Plans

The due dates for any existing Instalment Plans payments remain unchanged. If you are experiencing difficulty in making payments, please contact us and we can liaise with Revenue NSW on your behalf.

We can assist you with actioning payroll tax deferrals and economic stimulus payments – get in touch here.

JobSaver payment will taper as follows:

Current rate (paid fortnightly) — 40% of weekly payroll | Employing: $1,500 to $100,000 per week | Non-employing: $1,000 per week

 After 10 October — 30% of weekly payroll | Employing: $1,125 to $75,000 per week | Non-employing: $750 per week

 At 80% double vaccination — 15% of weekly payroll | Employing: $562.50 to $37,500 per week | Non-employing: $375 per week.

The Micro-business Grant will be reduced by 50% from $1,500 per fortnight to $750 per fortnight once the 80% double vaccination target is reached.

Both programs will end on 30 November 2021. It is expected that fortnightly reconfirmation of eligibility for the remainder of the programs will be required.