SA businesses to benefit from $650 million rescue package

26 March 2020, Written by David Simmons

SA businesses to benefit from $650 million rescue package

Payroll and land tax relief, the waiver of fees and charges, and a new community and jobs fund are the major pillars of South Australia's $650 million stimulus package.

The Marshall Government says individual businesses and industry sectors facing collapse will reap the benefits of the relief fund as the state teeters on the edge of losing thousands of jobs.

Finalised this afternoon, the package includes the waiving of liquor licence fees for hard-hit hotels, restaurants, cafes and clubs.

South Australia has now committed $1 billion in its fight to save local business. The total spend also includes the establishment of two new funds: a $300 million Business and Jobs Support Fund and a $250 million Community and Jobs Support Fund.

In addition to support for businesses the State Government will provide a one off $500 payment and bring forward the 2020-21 'Cost of Living Concession' for households receiving the Centrelink JobSeeker Payment.

Premier Steven Marshall hopes the $650 million spend will help businesses survive the Covid-19 financial crisis.

"In the space of a few weeks, in some cases overnight, once thriving local businesses and their staff are now facing uncertain futures through no fault of their own and my Government is stepping up to make sure we see them through this period," says Marshall.

"Our Jobs Rescue Package is aimed squarely at keeping as many hardworking South Australians in jobs as possible. For those who have been already let go, we want to see them become re-skilled and employed elsewhere.

"And by either waiving or deferring fees, charges and taxes, we are easing the cash flow burden on businesses at a time when they need it most."

The $650 million stimulus package includes:

Payroll tax relief (Up to $60 million of savings to business)

  • 6-month waiver for all businesses with an annual payroll (grouped) up to $4 million
  • Eligible businesses won't have to pay any payroll tax from April to September
  • This measure is expected to assist up to 2,400 businesses and save them up to $84,000 over the six months (average saving $25,000)
  • Employers with grouped annual wages above $4 million able to defer payroll tax payments for 6 months on demonstration of significant impacts on cash flow of coronavirus
  • Around 4,300 businesses will be able to access this payroll deferral and is expected to increase overall cash flow by around $580 million.

Land tax relief (Up to $13 million in additional savings)

  • From July, the Government's land tax reforms will kick in, delivering $189m in savings to investors and landlords over the next three years.
  • Under the new measures, individuals and businesses with outstanding quarterly bills for 2019-20 able to defer payments for 6 months (up to 28,000 private land tax ownerships will benefit)
  • For 2020-21 Land Tax Transition Fund relief will be increased from 50% to 100% based on existing relief criteria guidelines saving some investors up to $50,000

Fees and Charges

  • Waiver of liquor licence fees for 2020-21 for those hotels, restaurants, cafes and clubs forced to close as a result of new social distancing restrictions

$300 million Business and Jobs Support Fund

  • A fund to support individual businesses and industry sectors directly affected by coronavirus, and face potential collapse and the loss of thousands of jobs as a result

$250 million Community and Jobs Fund

  • A fund to support community organisations, sporting, arts and recreational bodies, non-profit organisations as well as some industry sectors whose operations have been impacted by the coronavirus
  • Will also help with training of South Australians seeking new skills and employment and to assist organisations meet increased demand for services including emergency relief.

Cost of Living Concessions (An estimated additional benefit of about $30 million)

  • A once-off boost of $500 and bring forward the 2020-21 'Cost of Living Concession' for households who are receiving the Centrelink JobSeeker Payment, assisting those who are unemployed or lose their jobs as a result of the coronavirus restrictions.
  • For eligible homeowners, their 2020-21 payment of $215.10 will now become $715.10. Eligible tenants will receive $607.60.

Access to accrued leave for public sector workforce

  • If a public servant has a family member who has lost their job and moved onto Commonwealth benefits, they will be able to receive their accrued leave down to a limit of 2 retained weeks (annual and long service leave)

For more information, and to apply for the funds, email: BusinessandJobsSupportFund@sa.gov.au or CommunityandJobsSupportFund@sa.gov.au.

Updated at 2:54PM AEDT on 26 March 2020.

 
Author: David Simmons

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