On Thursday 26 March, South Australia Premier Steven Marshall and Treasurer Rob Lucas, in a press conference announced the details surrounding $650 million support package.
The stimulus packages announced thus far now total $1 billion in support for SA households and businesses. The $650 million support package is in addition to the previous stimulus package of $350 million.
“We want to relieve as much stress as possible for individuals and families,” he says.
Outside of war time this is the most significant support ever offered from the Federal Government.
Treasurer Rob Lucas also spoke to break down where exactly the second stimulus package will be going.
The key elements of the second stimulus package covers relief from taxes and charges, businesses support fund, community support fund, additional support for jobseekers
In the next 6 months, there is a complete waive of payroll taxes. This waive has been extended that for the next two quarters, the June quarter and the September quarter. This waive will be reassessed for the December quarter.
For SMEs with payrolls grouped up to $4 million, the measure will assist up to 2,400 businesses, and can save save up to $84,000 per business, the average saving is $25,000.
For businesses with grouped annual wages above $4 million, a deferral of payroll tax is allowed for a period of six months, for those companies who can demonstrate an impact of income as a result of COVID-19.
The Government’s land tax reform from 1 July, will see a 189 million reduction over three years. With 92% of individuals will be better off and 75% company groups better off.
For those who were to pay additional land tax, a relief scheme has arrived. Those paying $102,000, for 2020-21 Land Tax Transition Fund relief will be increased from 50% to 100%.
This complete relief is in relation to any possible increase to aggregation measures put into place by Government at this time.
Land tax bills generally go out in October, some pay quarterly. Quarterly payment will be deferred.
Fees and Charges & Liquor Licence
Regarding Fees and charges, the National Cabinet decisions have significantly impacted many businesses. Therefore, those forced to close will be waiving liquor licensing fee completely.
Business and Jobs Support Fund & Community and Jobs Support Fund
On the business and jobs support fund & community and jobs support fund, numerous states and jurisdictions are going to follow the Victorian model, including South Australia.
The Treasurer also pinpoints the many industries struggling, including airlines, sporting, arts, non-government associations, industry sector. Stating that the Government and tax payers can’t save every job but need to provide structure and support to look at the ones we need to provide support to.
Business and jobs growth structure, with no revenue will face significant struggles.
Further announcement on this stimulus package to come later today or tomorrow.
Support funds will be led by significant figures and difficult but quick decisions will be made as to what assistance can be provided by the tax payers.
“Significant number of South Australians, through no fault of their own, are unemployed or soon to be unemployed,” he says.
There will be a one-off boost of $500 for every individual who is receiving Centrelink Jobseeker payment for those who are unemployed or have lost their job because of COVID-19.
Payment is also to be brought forward, for the next three weeks. A significant commitment from tax payers through the government to those who most need assistance as a result of the coronavirus pandemic is in progress.
More to come.
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