An estimated 40,000 small businesses will benefit, after the NSW Government announces increases to the payroll tax threshold from $750,000 to $1 million.

The move will be introduced progressively over the next four years, starting with an increase to $850,000 from the 2018-19 financial year.

Under the proposal, close to 40,000 businesses will benefit with savings of up to $5,450 this financial year and up to $13,625 by the 2022 financial year, while some 5,000 businesses will ultimately be freed from paying the unpopular tax altogether.

Read the full story to see if this affects your business.