What The NSW Budget Means For Small Business (2025 Updated)

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Are you a resident of NSW and either running your own business or thinking about starting your own business? Whether you’re aiming to register your business as a sole trader or to incorporate, now is the time to understand how the NSW Budget for 2024-25 is shaping up to support you in 2025.

Whether you’re in regional NSW or right in the heart of Sydney, we break down the latest NSW Budget for 2024-25 to show how these government initiatives could positively impact your business this year.

Does Your Business Need Practical Advice?

Under the new budget, the Business Connect Program has been further extended, offering up to 4 years of confidential, independent advice on how to start, change, or grow your small business. This initiative provides crucial support for businesses at every stage, whether you’re dreaming of a start‐up or looking to expand an existing enterprise.

No matter what phase your business is in — even if you’re just contemplating getting started — you can access free professional advice designed to help you navigate the legal and practical challenges ahead.

Less Payroll Tax!

The NSW Budget for 2024-25 introduces an increased payroll tax threshold, now set at $1.4 million, giving your business more breathing room. At the same time, the payroll tax rate has been reduced to 4.5% for the period July 2024 to June 2025.

This change means that many small businesses will see a significant reduction in their tax burden, leaving more capital to reinvest in growth or upgrade critical systems. For further details on how different business structures can benefit, read our guide on operating as a sole trader versus incorporating.

Does Your Small Business Want A Government Contract?

$10 million has now been allocated in the NSW Budget for 2024-25 to help small businesses tender for government contracts. With the NSW Government spending over $25 billion each year on goods and services from small businesses, there are outstanding opportunities to secure lucrative contracts.

This support is administered by the Small Business Commissioner. Discover more about their extended services and other funding opportunities here.

Return To Work Grant For Women

Grants of up to $5000 remain available for women who have been out of work for a month or more and who plan to re-enter the workforce within 6 months. These funds can help cover training, education, office supplies, childcare, and transport, easing your transition back to work.

Training And Upskilling

In 2024-25, state-funded training will not only help job seekers and school leavers, but will also address emerging skills shortages in sectors such as digital technology, healthcare, and advanced manufacturing. Traditional industries including care, education, and apprenticeships continue to benefit, ensuring a comprehensive approach to workforce development.

Besides upskilling, a strong focus is being placed on the recruitment and retention of staff, helping businesses secure the talent they need to thrive in a competitive market.

Small Businesses In Regional NSW

An additional $400 million has been allocated to the Regional Growth Fund in the NSW Budget for 2024-25. This fund is designed to be used over the next two years to support local facilities and projects, boost tourism, enhance infrastructure, foster the arts, sports, and digital connectivity, and assist drought-affected businesses while encouraging job growth in regional areas.

If you operate a small business in regional NSW, explore what specific grants might be available to you here.

Are You Thinking Of Relocating Or Expanding In NSW?

The Jobs Plus Program in the NSW Budget for 2024-25 has been enhanced to make relocating to NSW even easier and more cost-effective. This initiative is part of a broader effort to stimulate job growth and business expansion across the state.

Some of the key perks include:

Free or subsidised accommodation and workspaces
Assistance in accessing government programs, including expedited planning support and legal advice via our Company Set Up service
Subsidised training and upskilling programmes
Increased payroll tax relief
Enhanced infrastructure support

Other Industries Set To Benefit

Alongside traditional sectors, the NSW Budget for 2024-25 continues its commitment to the arts and cultural sector, sports, and the taxi industry. New incentives are also being introduced to support technology, sustainable energy, and creative industries, ensuring a well-rounded economic recovery.

Vouchers For Funsies, And Eating Outdoors!

In a bid to stimulate consumer spending, every adult in NSW is set to receive a $100 voucher for dining and entertainment. This initiative, part of the NSW Budget for 2024-25, is designed to boost the restaurant and entertainment sectors, particularly during off-peak times.

Additionally, if you run a restaurant or entertainment business in the Sydney CBD, you could benefit from an extra $15 million allocated by the City of Sydney to encourage outdoor dining and events – ideal for the longer summer evenings ahead.

No matter what type of business you operate, it’s always worth exploring the grants and funding options available to help support your growth and adaptation in this dynamic economic landscape.

Staying informed about these government initiatives and aligning your business strategies accordingly is more critical than ever in 2025. It’s a great time to review your legal documents and business structures, whether that means reassessing your sole trader setup or exploring incorporation options. For comprehensive advice, our team at Sprintlaw is always ready to support you with up-to-date legal guidance tailored to your small business needs.

Justine Wu

Justine is a legal consultant at Sprintlaw. She has experience in civil law and human rights law with a double degree in law and media production. Justine has an interest in intellectual property and employment law.

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