Second State Stimulus Package

26/03/2020 12:00am

Marshall Government Unveils $650M Relief on Payroll, Land Tax, Fees & Charges.

South Australian Premier Steven Marshall unveiled a $650M Emergency Jobs Rescue Package, taking the State’s total economic response to the COVID-19 crisis to $1B.

The latest cash injection comes after the Marshall Government announced $350M of funding on 11 March towards funding infrastructure projects, both new and some that can be brought forward and begin immediately, ranging from maintenance, housing and tourism infrastructure projects to those that are health-related.

The new package includes significant payroll and land tax relief for thousands of businesses across the state. It also includes 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 COVID-19 crisis.

The Government said it will establish two new funds (the $300M Business and Jobs Support Fund and the $250M Community and Jobs Support Fund).

We're here for you

For further information on how to access funding as part of this second stimulus package, or other relief measures that may be available for you or your business, please ring your Hood Sweeney relationship manager on 1300 764 200, or send an email.

Among the new initiatives in the Government’s second stimulus package

Payroll tax relief (Up to $60M of savings to business)

  • 6-month waiver for all businesses with an annual payroll (grouped) up to $4M
  • 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 $4M able to defer payroll tax payments for 6 months on demonstration of significant impacts on cash flow of COVID-19
  • Around 4,300 businesses will be able to access this payroll deferral and is expected to increase overall cash flow by around $580M.

Land tax relief (Up to $13M 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 six 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.

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.

$300M Business and Jobs Support Fund

  • A fund to support individual businesses and industry sectors directly affected by COVID-19, and face potential collapse – and the loss of thousands of jobs – as a result.

$250M 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 COVID-19
  • 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.

Cost of Living Concessions (An estimated additional benefit of about $30M)

  • 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, assisting those who are unemployed or lose their jobs as a result of COVID-19 restrictions
  • For eligible homeowners, their 2020-21 payment of $215.10 will now become $715.10. Eligible tenants will receive $607.60.

Access to accrued leave for Public Sector workforce

  • If a public servant has a family member who has lost their job and moved onto Commonwealth benefits, they will be able to receive their accrued leave down to a limit of two retained weeks (annual and long service leave).

The Government also has established a new Industry Response and Recovery Council, representing key industries - from business, property, retail, construction and housing to tourism, primary industries, food, wine and hospitality. This group is to help inform the response to the economic challenges created by global pandemic.

If Hood Sweeney can assist with further information, answer your questions or explain how these changes may affect you, please call us on 1300 764 200.

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