State Budget will aim to kick-start business with payroll tax relief Bev Barnfather, owner of corporate gift wrapping company Ladybird Gifts / Pic: John Fotiadis Source: The Daily Telegraph EVERY business in NSW will save an average of more than $3000 a year per employee with the state government to raise the threshold for payroll tax in a bid to create thousands of jobs. The rate at which businesses have to start paying the tax will rise from a salary bill of $689,000 to $750,000 in the big giveaway of today's otherwise tight state Budget, with all the spare money going into infrastructure. But there will be a catch. Previously the threshold has been indexed to inflation and this will be abolished in accordance with other states. NSW to spend $6.4 billion on transport Budget The $750,000 threshold would have kicked in after three years' indexation. In further relief from the tax for businesses, the Jobs Action Plan payroll tax rebate, in which businesses can apply for a rebate for employing new staff, has been extended to June 20, 2015. Every business which employs a new employee will receive a $2000 rebate on their payroll tax on their first anniversary of employment at the firm and $3000 on the second anniversary. Boundary revamp to jeopardise key seats When the scheme was set up after the Coalition was elected two years ago, the government announced it would give the rebate to the first 100,000 hires but businesses have only applied for about 20,000 of the 100,000 jobs created since then. Now the 100,000 jobs cap will be removed and the rebate increased to $5000 per new employee (from $4000) from July 1. The government is putting the cost of the measures at $96 million over the next three years. Bev Barnfather, owner of corporate gift company Ladybird Gifts, said while she didn't need to hire new staff at present, any changes would be welcome. "I would welcome any changes to the pay tax threshold particularly if it enabled me to hire more staff," she said Government sources confirmed a small deficit will be announced for 2013-14 and a surplus for 2014-15 as the state heads into an election year, helped by the $5 billion sale of Port Botany. Also to be announced tomorrow will be the rollout of $1.6 billion of the committed $1.8 billion for the West Connex motorway the government has promised, with $111 million in 2013-14, $413 million in 2014-15, $629 million in 2015-16 and $647 million in 2016-17.