Thousands of medium-sized businesses across South Australia will benefit from further significant payroll tax relief as part of $85 million in economic stimulus announced by the Marshall Liberal Government today to support local jobs.
Under the scheme, businesses with annual payroll (grouped) of up to $4 million will be granted an extra 3-month payroll tax waiver (worth approximately $25 million) – in addition to the 6 months’ relief they have already received.
And approximately 1,900 businesses with grouped annual wages of more than $4 million will be able to continue to defer their payroll tax liability on demonstration of impacts on cash flow of COVID-19 for a further 3 months^, providing around an extra $60 million in cash flow benefit on top of the $120 million in payroll tax deferrals already received over the past 6 months.
Treasurer Rob Lucas said the additional 3-month payroll tax waiver is expected to assist up to 2,400 businesses – from manufacturers and retailers to gymnasiums and builders – and save them up to an extra $42,000 over the next three months.
This means eligible businesses now won’t have to pay any payroll tax from October to December* – a total 9 months’ worth, or around $75 million in total payroll tax savings.
“By slashing payroll tax until the end of the year, we are giving these businesses every chance to get back on their feet and keep their hardworking staff in jobs,” said Mr Lucas.
“This will continue to ease the cash flow burden on businesses at a time when they need it most, money that can be spent in other areas of need.
“Over the past 6 months we have already provided around $50 million in payroll tax relief to businesses with grouped annual wages below $4 million – and today’s announcement will provide an additional $25 million in targeted savings.
“This is all about keeping as many South Australians in jobs as possible, and helping local businesses keep their lights on and their doors open as we work together to get through the greatest economic challenge of our time.”
The Marshall Government is investing $2 billion in economic stimulus, which includes $187 million in emergency cash grants for small businesses and not-for-profit organisations, land tax relief, the waiving of various fees and charges and infrastructure investment. It also includes the extension of payroll tax waivers and deferrals.
A series of recent independent economic reports shows South Australia is performing relatively well compared with other states in our COVID-19 economic recovery.
Latest ABS single touch payroll data shows SA’s employment growth of 6.8 per cent since the COVID low point of mid-April is the strongest of every other state, except Western Australia.
National jobs growth for the same period was only 4.4 per cent.
*Additional 3-month waiver and deferral is based on September to November returns
^Eligible businesses will be able to defer liabilities due in October to December 2020* until 14 January 2021. Any previously deferred amounts relating to April to September payments may also be further deferred to 14 January 2021.