This is a budget which provides some welcome relief for small business in the form of an increased payroll tax threshold and builds future capacity through investment in infrastructure and skills.

Importantly, the budget recognises the need for fiscal responsibility with an average surplus of $1.6 billion per year projected over the forward estimates, despite revenue from stamp duty being lower than expected over the coming years.

The NSW Business Chamber has long cautioned that stamp duty revenue was providing somewhat of a false picture of the strength of the state’s finances, however, this is a budget that recognises the role the business community, particularly small business, plays in getting the economy firing.

The previously revealed extension of the payroll tax threshold to $1 million over the next four years has been celebrated by businesses of all sizes. 

Already a number of businesses have commented they will be taking on more staff on account of not being slugged with payroll tax or associated administrative expense. 

Regional NSW accounts for a higher relative share of small and medium enterprises, therefore this measure will provide more relief for many of our businesses in western NSW.

One of the growing challenges for businesses in NSW, particularly our region’s businesses, is in the ability to attract and retain skilled staff.

The government is looking to close the gap on the skills shortage through the provision of 100,000 free apprenticeships, and a mandate that new government infrastructure projects must have a workforce of at least 20 per cent apprentices.

More than $35 million has been set aside to extend the Easy to Do Business program, a concept enthusiastically championed by the NSW Business Chamber during its trial stages when it assisted restaurants and cafes.

Its extension to the housing construction sector will make it easier for new players to set up operations.

The budget confirmed $13.3 million in funding for the NSW Productivity Commission, with one of the first projects being a review of payroll tax administration, development of a portal to help NSW businesses identify opportunities to reduce red tape, and developing a new regulatory policy framework for NSW.

Regional NSW will also see an additional $4.15 billion from the sale of Snowy Hydro.

The Snowy Hydro Legacy Fund will provide funding for regional infrastructure across regional NSW, including western NSW.

It was pleasing to see that the Resources for Regions programs included $4.6 million for stage four of the South Orange Economic Development Corridor (Anson Street to Pinnacle Road) and there was funding in the Sealing Country Roads Program for the Cobb and Silver City highways.

With an election in NSW now just nine months away, the government has made its pitch through this budget on the back of solid economic management being able to provide opportunities to support business growth, investment and job creation.

However, it’s vital that regional NSW is not left behind, and we expect to see activity on the ground in the coming months.