2018 SA State Budget
05 September 2018
Out with the old and in with the new: SA Budget 2018 offers little for business, but payroll tax relief to be applauded
The theme of the Marshall government’s first State Budget seems to be ‘out with the old and in with the new’ according to BDO Business Services Partner David Fechner, with less 'fat trimming' than business might have expected.
Speaking after the 2018/19 South Australian State Budget, handed down today, Mr Fechner gave the budget a score of five out of ten for business overall, but rates the payroll tax relief provided to over 3000 small business owners much higher.
“The increased threshold greatly reduces the hurdle to small business expanding their staff numbers by that one next employee”, said Mr Fechner.
It was disappointing that business missed out on incentives for energy investment, so will have to go it alone for the next four years whilst the national market sorts itself out.
$200 million to fund 20,800 new apprenticeships and traineeships will go some way to easing the skills shortage for business, but BDO questions whether the $110 million additional funding for TAFE is directed to the correct training organisation.
The development of an innovation and indigenous precinct on the site of the former RAH has received significant funding, and is located perfectly to leverage off our Universities and existing CBD.
BDO's view of the 'hot or not' list from this year’s SA State Budget announcements for business include:
- Payroll tax exemption for small business raised from $600,000 to $1.5million
- Commitment to continued infrastructure spend of $11.3 billion over the next 4 years
- Skilling South Australia initiative to support 20,800 apprenticeships
- Reduction in the ESL
- Grid scale storage fund of $80 million
- Commitment to education spending to train employees of the future.
- No increase in the payroll tax threshold
- No extension to the Job Accelerator Grants scheme
- No incentives for business investment in renewable energy sources and storage
- No relief for energy costs for business.
If you have any questions on how this year’s South Australian Budget will impact your business, please contact David Fechner.