Small businesses in NSW will collectively save as much as $10 million a year from changes announced by the Berejiklian government to streamlined the state's payroll tax system.

The reforms, which will make it possible for many small firms to submit payroll tax just once a year, are expected to save 27,000 businesses an average of about 16 hours work each year by 2020-21.

The Treasurer, Dominic Perrottet, has announced an overhaul to the way payroll tax is paid in NSW. Credit:AAP

Treasurer Dominic Perrottet said the overhaul would reduce the administrative burden on small businesses when he announced the measures in a speech to the Australian Industry Group on Wednesday night.

“These reforms mean payroll tax can now be a set-and-forget affair, rather than a monthly hassle,” Mr Perrottet said.