Live and do business in SA? These COVID-19 initiatives may help you
In addition to the Federal Government’s COVID-19 economic stimulus measures that have been announced over the past three weeks, the South Australian Government has also designed its own raft of measures to protect SA businesses and residents.
These measures include:
Payroll tax relief
Businesses with an annual payroll of up to $4 million can have their payroll tax waived for six months, from April 2020 to September 2020.
The maximum amount of assistance is just over $84,00 over six months, and is expected to benefit around 2400 business groups.
Businesses with group Australian taxable wages beyond $4 million, who can demonstrate that COVID-19 has had a significant impact on cashflow, will also be granted a six-month payroll tax deferral.
Head to the Revenue SA website
The Jobs Rescue Package
This is made up of two new funds:
- The $300 million Business and Jobs Support Fund
- The $250 million Community and Jobs Support Fund
The Business and Jobs Support Fund will be used to help businesses and industry facing job losses and closure due to COVID-19, and the restrictions being put in place to prevent the virus spreading further.
The Community and Jobs Support Fund is aimed at helping community organisations – like sporting clubs, non-profit organisations and arts bodies. This fund will support the training of South Australians who are looking to develop their skills and employment prospects, as well as help organisations meet higher demand for services.
It’s worth noting the South Australian Government has indicated the funds are to support and preserve existing businesses, and not to help expand what businesses are already doing, or fund new activities or events.
For information about either fund, it’s best to head to the South Australian Department of Treasury and Finance website: www.treasury.sa.gov.au
Land Tax Package – 2019-2020 third and fourth installments deferred
Land Tax Reforms will commence in July 2020, designed to deliver around $190 million in savings to investors and landlords over the next three years.
The measures will see businesses and individuals who pay quarterly land tax have their remaining 2019-2020 payments deferred for six months.
No application process will be required – you don’t even need to contact RevenueSA to create a new arrangement.
Note that the deferral will not relate to previous unpaid land tax debts.
Head to the RevenueSA website.
Land Tax Reform Transition Fund
As well as this, the Government will increase the existing land tax transition fund relief.
Prior to the COVID-19 outbreak, the SA Government had offered land tax reform transitional relief to eligible taxpayers whose land tax bill would increase due to the changes in aggregation of land from 1 July 2020. This 50% relief of the increase in the 2020-2021 land tax assessment has now increased to 100% relief of the increase. It will be subject to the existing eligibility criteria.
The Land Tax changes page of the Revenue SA website is the best place to start.
Job Accelerator Grants – criteria around employment levels to be relaxed
The SA Government will be relaxing its criteria for the existing Job Accelerator Grant that insist an employer must have maintained overall employment levels to qualify for their second JAG payment.
Applications for the second JAG grant payment from 1 February to 30 June 2020 will be based on employee numbers on 31 January 2020, rather than the relevant anniversary date.
Further information is available at the RevenueSA website.
Liquor licensing fees
Liquor licensing fees for 2020-2021 will be waived for the following operators:
- Restaurants and catering
- Liquor production and sales
General and Hotel license holders who have a bottle shop will receive reduced fees, or a full waiver if they don’t have a bottle shop.
The licence fee for packaged liquor sales will NOT be reduced or waived.
For further information please visit the Consumer and Business Services website.
Cost of living concession
The South Australian Government will provide 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.
For eligible homeowners, their 2020-21 payment of $215.10 will now become $715.10, eligible tenants receiving $607.60.
If you need more information about what assistance you, or your business, might be entitled to, contact Sinclair Wilson’s Mount Gambier team.
We are here to help.