Tax and red tape will be cut for South Australian small businesses, under the 2013-2014 State Budget
June 6, 2013
Small businesses in South Australia will receive a payroll tax concession as part of the state’s 2013-2014 Budget.
SA Premier and Treasurer Jay Weatherill this week announced the Budget would provide $21.6 million over two years to give employers a temporary payroll tax rate cut of up to 2.45 percentage points.
The tax rate cut will apply to taxable payrolls up to $1 million, with the concession phasing out for payrolls between $1 million and $1.2 million.
The relief will be in the form of a cash grant paid upfront to eligible small businesses by Revenue SA before the end of each calendar year.
“South Australia’s small businesses are often the backbone of a community, providing jobs and services to local people,”Weatherill says.
According to Weatherill, representatives of major banks joined government this week to offer products and services to support the initiative.
The government also claims to have cut red tape with a small business package included in the Budget.
The package includes $5.4 million funding over four years to help small businesses start up, become innovative, and gain government contracts.
$608,000 will be provided over two years to support small business start-ups and small business development.
The initiative aims to help small businesses create partnerships with industry and professional associations.
The Budget will also provide $3 million over three years to continue the Small Business Innovation Research Pilot Program, to help small businesses develop innovative products.
The Budget includes $440,000 over two years for the Industry Participation Advocate to help local businesses win more government contracts.
Also included in the Budget is $1.1 million over four years to increase the dispute resolution services of the Office of the Small Business Commissioner.
The Budget allocates $300,000 over two years for a taskforce to identify opportunities to further reduce government red tape for businesses.
The Budget sets out a stamp duty exemption for corporations that are changing their structure, at a cost of $2 million for four years.
Current administrative arrangements for eligible corporate restructures provide businesses with 95 percent stamp duty relief on the transfer of assets within a corporate group.
The measure will provide a full-legislated stamp duty exemption for eligible corporate reconstructions.