NSW State Budget 2024-25

The Budget provides an opportunity to update the NSW Government’s economic forecasts and announce new measures that impact a range of community stakeholders including small businesses.  

Economic and business outlook 

Today’s NSW State Budget provides updated economic forecasts, with growth expected to be subdued in the very near term before improving throughout the course of 2024-25. Cost-of-living pressures have weighed on household spending and slowed growth in the economy. State Final Demand is forecast to grow by 1 ¼ per cent in 2024-25 and 2 ¼ per cent in 2025-26.  

The subdued outlook highlights some of the ongoing challenges faced by small businesses, including due to rising costs, weaker customer demand, staff shortages, compliance burdens and higher interest rates. Results from the Commission’s monthly Momentum Survey shows that business confidence remains subdued. A partial reading for the month of June suggests confidence levels have stabilised but remain weak and near record lows.  

Small businesses are reminded to contact us to discuss how the Commission may be able to assist if they are experiencing difficulties such as a dispute or other business challenge.  

Summary of key Budget measures 

The Budget navigates a challenging fiscal environment, with lower-than-expected GST receipts, while making new spending commitments in priority areas. 

Some key measures and announcements that may impact small businesses include: 

1. Small Business Support Programs: Service NSW received funding to provide ongoing support services for small businesses. 
2. Payroll tax rebates for bulk-billing GPs: The Government will exempt past, unpaid payroll tax liabilities for payments made to general practitioner (GP) contractors up to 4 September 2024. From 4 September 2024, medical centres that meet requisite bulk-billing thresholds will be eligible for a payroll tax rebate associated with payments to contractor GPs.  
3. Land tax indexation changes: In the 2024 land tax year, the land tax threshold was set at $1,075,000 and the premium rate threshold was set at $6,571,000. From the 2025 land tax year, thresholds will remain fixed at their 2024 land tax year values and will no longer be indexed. This is expected to increase revenue by $1.5 billion over the four years to 2027-28. 
4. Foreign buyer surcharges: The Government will increase the foreign owner land tax surcharge from 4 per cent to 5 per cent from the 2025 land tax year onwards. Commencing 1 January 2025, the foreign purchaser duty surcharge will also increase from 8 per cent to 9 per cent. 
5. Digital Transformation and Cybersecurity: Funding for cyber security initiatives and digital transformation projects such as $62.5 million the rollout of digital licensing to 80 NSW schemes. 
6. Workforce Development: Investment in training and skills development includes an additional $8.9 million, to bring total expenditure up to $16.3 million, for Fee Free training for all apprentices and trainees in NSW. 

For other Budget measures and announcements visit www.budget.nsw.gov.au.