Major boost for medium ECEC businesses in SA with payroll tax relief measures
Thousands of South Australian businesses, including those associated with the early childhood education and care (ECEC) sector, stand to benefit from further significant payroll tax relief as part of $85 million in economic stimulus announced by the South Australian Government earlier this week.
Under the scheme, businesses with annual payroll (grouped) of up to $4 million will be granted an extra three-month payroll tax waiver (worth approximately $25 million) – in addition to the six months’ relief they have already received.
For the approximately 1,900 businesses with grouped annual wages of more than $4 million, support will be offered in the form of being able 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 six months.
The additional three-month payroll tax waiver is expected to assist up to 2,400 businesses and save them up to an extra $42,000 over the next three months, South Australian Treasurer Rob Lucas said.
“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,” Mr Lucas said, noting the measures should “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”.
“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,” he added.
The SA Government has committed $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. The figure 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 its 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.
For further information on the measures, please see here.
^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.
Momentum for educator pay, conditions and support change reinforced in Productivity Commission Report
by Jason Roberts
Dreaming about owning your own centre? It’s easier than you think!
by Marketplace Editor
Flowers, chocolates, promises: now too late for early childhood educators
by Freya Lucas