What a Perrottet government means for business and personal wealth Posted on October 18, 2021
New South Wales’ new State Premier, Dominic Perrottet, has communicated his agenda for a number of economic reforms that will impact businesses and individuals.
- Reopening roadmap – Perrottet has wasted no time putting his own stamp on the roadmap, bringing dates forward to ease restrictions. Businesses are open, they are however, responsible for enforcing double-vaccination status of all consumers/patrons, much to the chagrin of many business owners who have had their responsibilities, stakes and risks multiply throughout the COVID rollercoaster. Business owners will also be liable for any consumers on site who disobey the health orders, including over-crowding. Business owners need to be very careful about diplomatically dealing with all customers, despite their vaccination status. The rules are the rules, but how you communicate them and cater to them matters greatly. Gentle, polite, respectful yet assertive communication is the only way to keep out of hot water with the authorities and the people you are in business to serve.
- Business stimulus – in an effort to boost business and consumer confidence, Perrottet has announced a number of initiatives, including:
- A new round of Dine and Discover vouchers for the hospitality and recreation industry,
- Grants of $5,000 to support dining venues to build or improve alfresco dining areas seeing as being outdoors is a COVID-19 protection measure.
- Those businesses who work with perishable goods are now protected over the coming months by the SME Summer Holiday Stock Guarantee. Eligible businesses with an annual turnover between $75,000 and $50 million will be able to apply for a grant of up to $20,000 to compensate for loss of perishable stock, or claim $10,000 for reduced capacity to sell non-perishable items if a local lockdown occurs and they are impacted. The expanded Small Business Fees and Charges Rebate will be eligible for use until 30 June 2022.
- A new Hardship Review Panel has been established to consider financial support for businesses experiencing financial hardship that do not qualify for COVID-19 business support measures. The panel will assess on a case-by-case basis businesses which did not meet the eligibility requirements for the 2021 COVID-19 Business Grant, Micro-business Grant and JobSaver payments.
- Charitable not-for-profit organisations facing financial impacts from COVID-19 restrictions can now apply for the NSW Government’s support package which has been boosted to $330 million. Treasurer Dominic Perrottet said the COVID-19 JobSaver Payment expansion and extension would support eligible registered charities working in the social services and animal welfare sectors.
- Some of his longer term initiatives include his Property Tax Proposal – Perrottet himself prepared the proposal to remove and replace stamp duty with an annual land tax. Designed to support first home buyers to enter the property market, a buyer would be required to opt in to the land tax that would be calculated on unimproved land value (aka the land value excluding the residence). Once rolled over to land tax, a property is locked in to that arrangement whether or not the property changes hands. The proposal would see the same amount of tax generated by stamp duty take 20 years to accrue, although it would be ongoing beyond this.
- GST – Perrottet is pushing for a larger slice of the GST pie for NSW, in particular, from Western Australia. The GST is governed at a Federal level, with Prime minister Morrison and Treasurer Frydenberg showing little-to-no interest in changing the current allocation, however Perrottet is likely to continue making noise over this one.
It is likely Perrottet will continue to make his mark as the new Premier of NSW, bringing in changes that impact businesses and individuals. If you would like to discuss your eligibility for any of the business initiatives, please contact us on [email protected]
The ATO is on a mission to recover unpaid…Read More