South Australian State Budget 2020-2021

Treasurer Rob Lucas delivered his third State budget for the Marshall Liberal Government yesterday, with the main focus on economic recovery by creating jobs and inspiring confidence in business and households. 
 
In his budget speech, Treasurer Lucas stated “The government has decided that this budget needs to jump-start our economy through the largest ever economic stimulus in our state’s history — a $4 billion state stimulus package which will leverage another $1 billion in Commonwealth and local government and business stimulus. The total stimulus package will therefore inject more than $5 billion into the state’s economy.” 
 
“The 2020-21 budget is creating jobs, backing business and building what matters.”
 

STATE TAXES

PAYROLL TAX

 
Further payroll tax relief will be available as follows:
 

Small and medium businesses with annual Australian grouped wages of up to $4 million

No payroll tax payable for the period from April 2021 to June 2021 (Previously announced no payroll tax until March 2021).
Larger business with annual Australian grouped wages greater than $4 million If in receipt of JobKeeper from 4 January 2020 – no payroll tax payable for the period from January 2021 to June 2021.
Larger business with annual Australian grouped wages greater than $4 million If affected by COVID-19, able to defer payroll tax due for the period April 2020 to December 2020. Extended payment arrangements also available.

Note: the payroll tax exemption for JobKeeper payments will continue.
 
There will also be a 12 month payroll tax exemption for wages paid to eligible new apprentices and trainees who commence a contract with an employer from 10 November 2020 to 30 June 2021.

LAND TAX

 
The land tax transition fund, which provided relief for those taxpayers negatively impacted by the recent land tax changes, will now provide relief totalling 100% of the relevant increase in land tax for 2020-21. This has been increased from 50% relief announced previously.
 

BUSINESS GRANTS AND PACKAGES 

Existing available grants and projects have been extended, including:  
 
  • $82 million for a second round of $10,000 grants for small businesses and not for profit organisations adversely impacted by COVID-19 and $3,000 grants for owner operated small business conducted from a commercial premises who do not employ staff. This will be funded from the Business and Community Jobs Support Fund.
  • $220 million increase for the Economic and Business Growth Fund.
  • $245 million increase for the Business and Jobs Support Fund and the Community and Jobs Support Fund.
  • $76 million for a Housing Construction Stimulus Package from the Community and Jobs Support Fund designed to support the sector after the HomeBuilder stimulus finishes.  

EDUCATION AND SKILLS DEVELOPMENT  

The Job Trainer Fund National Agreement will receive additional funding of $68.9 million over two years to deliver additional training options to aid with economic recovery.
 
There will be an additional $5 million to subsidise small businesses to access business advice to support the development of sustainable business strategies.
 
Apprentice and trainee agencies will be provided with $32.9 million in additional funding to support 750 traineeships and apprenticeship places in the areas of cyber security, aged care, disability services and housing construction.
 

INFRASTRUCTURE PROGRAM

South Australia will now have the biggest public sector infrastructure program in this state’s history with additional funding of nearly $4 billion, raising the infrastructure spend to a record $16.7 billion over four years.  Road and public transport infrastructure funding totals $7.6 billion and health and education facilities $3 billion.
 
The Treasurer has emphasised that budget spending will be on projects that can be completed or significantly completed within two years, however longer term projects are also included in this state budget.
 
Major projects include:
 
  • $44m Stage 2 of the Memorial Drive Tennis Centre
  • $45m Hindmarsh Stadium upgrade
  • Additional $1.96b over 4 years for the North South Corridor project from Darlington to the River Torrens
  • $250m over 4 years for the Hahndorf traffic improvement project
  • $685m towards the new Women’s and Children’s Hospital
  • $50m on the current Women’s and Children’s Hospital, including work on the new Special Care Baby Unit and Paediatric Emergency Department upgrade