Sum Total Accounting and Business

Sum Total Accounting and Business

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SA State Budget Summary

The SA State Budget included further tax stimulus measures and announced major infrastructure spending programs.

Small business grant program:

The government has extended its $10,000 small business emergency grant program for employers. It has also introduced a new $3,000 grant program for non-employers.

The conditions for receiving the grants:

$10,000 employer grant

  • Must be receiving JobKeeper from 28 September 2020 (i.e. the first extension period);
  • Must employ people as at 30 September 2020;
  • Must have ABN and carry on business in SA;
  • Must have annual turnover exceeding $75k (GST excl.) in FY2019 or FY2020;
  • Must have total payroll less than $1.5m in FY2019 or FY2020 and not be entitled to a payroll tax waiver or deferral.

$3,000 non-employer grant

  • Must be receiving JobKeeper from 28 September 2020 (i.e. the first extension period);
  • Must not employ people as at 30 September 2020;
  • Must have ABN and carry on business in SA;
  • Must have annual turnover exceeding $75k (GST excl) in FY2019 or FY2020;
  • Must operate from ‘commercial premises’. This will be from premises on land which is leased or capable of being leased. Eligible land will depend on the land use code currently used by Valuer-General for the premises. ‘Residential’ or ‘vacant’ land use code will be ineligible.

The grant applications are open until 14 December 2020 on the Treasury Website. We can assist you with these grant applications.

Payroll tax relief:

The government has introduced new initiatives and extended existing initiatives:

  • 15-month waiver from April 2020 to June 2021 for business groups with annual Australian wages less than $4m;
  • A six-month waiver of payroll tax due in the period January 2021 to June 2021 for businesses that are eligible for the 2nd extension of the Federal government JobKeeper;
  • 12-month exemption for wages paid to eligible apprentices and trainees who commence from 10 November 2020 to 30 June 2021;
  • Exemption of JobKeeper payments from payroll tax;
  • Various payment deferrals.

You should review your existing payroll and employment processes to ensure that these exemptions and deferrals are being properly applied. Further information is available at RevenueSA website.

Land tax relief

The government noted their previous announcement that a 25% land tax relief scheme1 on their 2019-20 land tax bill will be extended to businesses eligible for JobKeeper after the end of October 2020. This potentially increases the discount on the 2019-20 land tax bill to 50%. This scheme also includes owner-occupier properties. 

Details of this scheme are available at RevenueSA website.

The government also noted the extension of the land tax transition fund to 100% for the FY 2021 year under the new land tax regime. We are now starting to see land tax notices come in for clients with some potentially anomalous outcomes.

We recommend you closely scrutinise your land tax assessments in relation to:

  • Aggregation of property holdings;
  • Trust assessments; and
  • Valuations.

We may be able to assist you to reduce your liability through making relevant elections, updating RevenueSA information, applying for the transitional fund relief and/or restructuring asset holdings.

Other relevant spending initiatives

The government has highlighted other new spending and previously announced funding including:

  • $120m for a digital restart scheme: This is an initiative for government agencies to improve their digital experience for customers.
  • $220m economic growth fund: This is directed at a variety of schemes administered by government agencies including:
  1. $5.0 for ‘Line Zero’ defence scheme which is an innovation project with Flinders University at the Tonsley precinct;
  2. $2.5m for Space discovery centre at Lot 14;
  3. $18.3m for an electric vehicle action plan;
  4. $5.6m for water and infrastructure corridors research for mining operations;
  5. $8m for an ‘excite’ strategy which is intended to enhance industry research collaboration;
  6. $5.4m for an expansion of film post-production scheme managed by SA film corporation;
  7. $2.0m for a scheme to encourage start-ups to connect with government agencies as customers of their product
  • Expansion to the Starter loan scheme which allows up to 5 years interest-free funding through Homestart for lower income households;
  • Significant road and infrastructure spend including $8.9bn on the North-South corridor;
  • $5m fund for assisting small to medium enterprises access business advice for sustainable business strategies. This will be a subsidy toward the cost of approved professional advisory services;
  • $10.2m for an Arts recovery fund to focus on creating employment for professional and practicing artists;
  • $25m for a regional growth fund; and
  • $20m for a Tourism Industry Development Fund.

What should you do?

Many of the announced measures are already available for application. For example, the second round of the $10,000 COVID emergency grant. You should assess your eligibility and apply where relevant. We can help you through this process so please get in touch if you have any questions.

You should also make sure you are accessing available payroll tax and land tax reliefs. Details in relation to accessing other funding programs should be available in due course through the relevant government agencies.

Please contact us for further assistance in making sure your business is accessing the available concessions.

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