SA Budget Annoucement

If you are operating a business in South Australia there has no doubt been a lot to keep on top of over the last week; with the impact the recent COVID-19 clusters could have on your staff or customers, to the impact the new restrictions could have on your business operations. With everything that is going on, you may or may not be aware that the South Australian State Budget was announced last week, some of which might be able to provide your business with some instant relief (insert deep sigh here).

Business Advisor, Daniel Lalic outlines the Small Business Grants below.

Small Business Grants (Round 2) 

The $10,000 SA Small Business Grants are back for a second instalment for those businesses still impacted by COVID-19. Eligibility criteria are inclusive of: 

• Having an ABN and been carrying on a business as at 30 September 2020 
• Employ workers in South Australia as at 30 September 2020 
• $75,000 or more annual turnover (excluding GST) in either 2018/19, 2019/20 
• Have an Australian payroll of less than $1.5m in either 2018/19 or 2019/20 
• Not entitled to a payroll tax waiver or deferral under COVID-19 support measures introduced by the SA Government 

• Qualify for the second instalment of JobKeeper (28 September 2020 to 3 January 2021) 

Whist many businesses benefited from this grant in its first offering, others, particularly sole traders and partnerships, missed out due to not having any employees. Therefore in this offering of the SA Small Business Grants, there is also a $3,000 grant available to those businesses that did not employ anyone during the required period, however, operated from a commercial premises, this is a big win for small business. 

Applications for the grants will be open from 10 November until 14 December 2020. 

Payroll Tax Relief 

The payroll tax relief in SA continues, with the following measures now all being in place to assist South Australian businesses: 

• 15 month waiver of payroll tax for businesses and business groups with annual Australian grouped wages below $4m 
• 6 month waiver of payroll tax due over the period January 2021 to June 2021 for businesses receiving JobKeeper from 4 January 2021
• Up to a 9 month deferral of payroll tax for businesses with a payroll greater than $4m adversely effected by COVID-19 
• Availability of extended repayment arrangements for deferred payroll tax 
• Payroll tax exemption on all JobKeeper payments and a payroll tax exemption on wages paid to new eligible apprentices and trainees for the first 12 months of employment 

Land Tax Relief 

In instances where during COVID-19 landlords of residential, non-residential, or commercially owner-occupied properties have provided tenants with rental relief, or lost income due to vacancy, landlords will be able to receive a reduction in their land tax of up to 50% on their 2019/20 land tax liabilities. 

Applications can be completed online via the Revenue SA website and specific requests for information relating to each situation will be displayed online as you complete the online form. 

For more information on any of the above, or for assistance in applying for either of the grants, please contact our office on (08) 8172 1444 or alternatively get directly in touch with your trusted advisor.