SOUTH AUSTRALIAN GOVERNMENT ASSISTANCE

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The SA government has announced details of its second economic stimulus package – which includes significant payroll and land tax relief for thousands of businesses across the state as well as the waiving of liquor licence fees for hard-hit hotels, restaurants, cafes and clubs – as part of its strong plan to save local jobs and industry in the wake of the coronavirus crisis.

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The emergency $650m Jobs Rescue Package – which brings the state’s total economic response to $1 billion – also includes the establishment of two new funds (the $300m Business and Jobs Support Fund and the $250m Community and Jobs Support Fund).

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$300 million Business and Jobs Support Fund

• Small businesses and not-for-profit entities that employ South Australians who have been adversely affected by the COVID-19 pandemic may be eligible to receive a $10,000 grant to support the operation of their business.

• To check you are eligible and register, please visit the SA Treasury website.

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1) 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.

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

• From July, the government’s significant 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

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3) 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

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4) 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

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5) $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.

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6) Rent Relief

• The government will provide rent relief for business tenants that have been significantly impacted by the COVID-19 restrictions. State Government agencies will provide full rent relief for tenants of commercial, retail, industrial and other non-residential sites that have been forced to close or are significantly impacted as a result of COVID-19. The rent relief will provide relief to impacted tenants from the date they were forced to close their business or were significantly impacted to 30 June 2020.