The South Australian Budget was handed down yesterday, please find following the items we believe will have the most impact on our clients (unless you drive an electric car).
Eligible businesses and not-for-profit organisations impacted by COVID-19 will be able to access a second $10,000 grant.
Eligible businesses that do not employ people (including sole traders) can access a new $3,000 cash grant.
To be eligible:
- you must be receiving JobKeeper from 28 September 2020;
- have an Australian Business Number (ABN) and were carrying on the operation of a business in South Australia on 30 September 2020;
- have an annual turnover of more than $75,000 (excluding GST) in either 2018-19 or 2019-20;
- are a participant in the Commonwealth Government’s extended JobKeeper Payment scheme from 28 September 2020;
- the enterprise does not engage in illegal activity;
- employing grant applicants also need to:
employ people in South Australia as at 30 September 2020*
have total Australian payroll of less than $1.5 million in either 2018-19 or 2019-20, and not be entitled to a payroll tax waiver or deferral under COVID-19 support measures introduced by the South Australian Government;
- non-employing grant applicants also need to:
be operating from a commercial premise (see Frequently Asked Questions for further detail)
not employ people in South Australia as at 30 September 2020*
Applications for grants are now open and close midnight 14 December 2020.
It is estimated that 10,000 small businesses and not-for-profits will benefit from these additional grants.
This is on top of the $186m in cash grants paid to over 187,000 recipients in the first round of the stimulus.
To apply, please refer: https://www.treasury.sa.gov.au/Growing-South-Australia/COVID-19/Small-Business-Grants-Round-2
The Budget highlighted several payroll tax relief measures to support businesses during the COVID-19 pandemic, as outlined below:
- a 15-month payroll tax waiver for businesses and business groups with annual Australian grouped wages below $4 million in respect of the months of April 2020 to June 2021. This represents an additional 6 months to the existing 9-month waiver.
- a 6-month payroll tax waiver has been introduced for businesses with grouped annual wages greater than $4 million who are eligible for the extended JobKeeper payment from 4 January 2021 in respect of the months of January 2021 to June 2021.
- a 9-month payroll tax deferral for businesses with a payroll greater than $4 million who are adversely affected by COVID-19 in respect of the months of April 2020 to December 2020 with payment deferred to 14 January 2021.
- the payroll tax exemption on all JobKeeper payments is continued.
- a 12-month payroll tax exemption has also been introduced in respect of wages paid to new apprentices and trainees who commence a relevant contract of training with an employer from 10 November 2020 to 30 June 2021. This COVID-19 relief measure is intended to support the retraining and reskilling of workers who have become unemployed, as well as the employment of younger people whose job prospects have been adversely affected.
The Budget also outlined a range of previously announced land tax relief measures, as follows:
- an increase to the land tax transition fund from 50% to 100% off the relevant increase in an eligible taxpayer’s land tax assessment in 2020-21. This transition fund provides relief to taxpayers negatively impacted by changes to the aggregation of land which came into effect from 30 June 2020.
- a maximum 50% reduction on the 2019-20 land tax liability on affected properties, for eligible residential and non-residential landlords where they have provided relief to affected tenants or lost income due to vacancy. The reduction consists of a 25% reduction based on eligible rent relief provided or rent forgone from 30 March 2020 to 30 October 2020 and a further 25% reduction from 31 October 2020 to 30 April 2021.
- a 25% reduction on the 2019-20 land tax liability for commercial owner-occupiers if they own the land where they operate their business and are eligible for the JobKeeper payment from 31 October 2020 and have annual turnover under $50 million.
- a maximum 6-month land tax deferral for business and individuals paying land tax quarterly in 2019-20 in respect of third and fourth quarter instalments.
Please contact our office if you have any queries relating to the budget.