SA State Budget Summary 2020/21

 

16 November 2020

With many calling this budget as one that would define future generations, South Australian Treasurer Rob Lucas had a big task in drafting a budget to get South Australia’s economy back and firing with the aim to work towards stability in the jobs sector.

A year struck down by bushfires and the pandemic meant there were many areas requiring a significant boost and in some cases, prolonged assistance. For a Government that is often talking about curbing spending and pushing towards surplus, it was a very different budget indeed. So much so that Rob Lucas quipped during his budget speech ‘Now I know the joys of retail therapy….it makes you feel good when you’re spending other people’s money’.

With significant deficits forecast over the next 3 years, from a South Australian record of $2.59 billion in 2020/21, falling over the next two years towards a projected surplus in 2023-24 – the state is going to go through some tough times financially. Especially as these figures are based on the hopeful availability of a population-wide vaccine by 31 December 2021. Time will tell.

As predicted, there has been significant spending allowances made towards supporting:-

  • Arts, Tourism, and Events
  • Infrastructure – such as the 10km South Road tunnel solution
  • Education and Skills
  • Energy and Environment
  • Construction Sector – including school maintenance funding
  • Regions – particularly Kangaroo Island and State Parks

Some key takeaways from the 2020-21 SA Budget were:-

South Australian Businesses:-

Cash Grants

  • $10,000 Grant for Employing Businesses – Criteria:
    • ABN and carrying on a business in SA on 30 September 2020
    • Employed staff in SA as of 30 Sep 2020
    • Annual Turnover exceeding $75,000 (GST excl.) in 2018/2019 or 2019/2020
    • Payroll of less than $1.5m in 2018/2019 or 2019/2020 and not entitled to Payroll Tax relief
    • JobKeeper 2.0 participant from 28 Sep 2020
  • $3,000 Grant for Non-Employing Businesses – Criteria:
    • ABN and carrying on a business in SA on 30 September 2020
    • Did not employ staff
    • Operate from a commercial premise as defined by the Grant
    • Annual Turnover exceeding $75,000 (GST excl.) in 2018/2019 or 2019/2020
    • JobKeeper 2.0 participant from 28 Sep 2020

For those that meet the criteria of these grants, please note the application process is now open here

Payroll Tax

  • Businesses with grouped Payrolls less than $4 million
    • Extension of the Payroll Tax waiver until 30 June 2021
    • Not dependent on eligibility for JobKeeper
  • Businesses with grouped Payrolls more than $4 million
    • 6 month Payroll Tax waiver until 30 June 2021
    • Dependent on eligibility for JobKeeper as of 4 January 2021
  • Apprentices and Trainees
    • Exemption of 12 months of Payroll Tax on wages paid to new eligible apprentices and trainees commencing during the period from 10 November 2020 to 30 June 2021.

Land Tax

  • Additional support provided to Land Tax payers impacted by recent changes to the aggregation rules.

If we can assist with the above or any other matters, or would like to discuss in more detail, please contact us at admin@nulli2advisory.com.au or 08 8132 6400.