In response to the COVID-19 pandemic and its significant impact on local businesses, industry sectors and jobs, the South Australian Government has announced a second economic stimulus package – the Jobs Rescue Package, worth $650 million – that will provide immediate financial support and relief to those most affected.
Within the Jobs Rescue Package, there are a range of measures that will provide support for workers, individual businesses and industry sectors, community organisations, sporting clubs, arts, cultural, community and recreational bodies as well as non-government organisations experiencing financial hardship and other impacts caused by restrictions enforced to limit the spread of the disease.
Two new funds have been established to support business, jobs and community organisations:
- A $300 million Business and Jobs Support Fund; and
- A $250 million Community and Jobs Support Fund.
The top priority for the Funds is the ongoing survival of entities and minimising job losses. At this time, it is not proposed that the Funds would be available to assist expansion opportunities or new activities or events.
Any queries in relation to the Business and Jobs Support Fund or Community and Jobs Support Fund or submissions seeking Government assistance from these Funds can be lodged at:
Submissions should seek to highlight the impacts of COVID-19 through loss of income and other impacts.
Individual businesses and community organisations are encouraged to work through their representative bodies, where possible, to make submissions to Government so that the broad impacts across each sector can be fully understood.
Through the Community and Jobs Support Fund the Government will also consider submissions that highlight additional community services which are required to respond to demands directly resulting from COVID-19.
The Government is also working on arrangements to support displaced workers finding alternative employment – further details will be announced soon.
As part of the Jobs Rescue Package and economic stimulus package , the Government is also providing the following support to businesses and households:
Local Government Infrastructure Partnership Program
The South Australian Government has announced the Local Government Infrastructure Partnership Program which will support councils to accelerate spending on community infrastructure projects that contribute to the future economic growth of their region, support the Government’s Growth State agenda, or improve local infrastructure facilities for businesses and community organisations to enable them to grow in the future.
The South Australian Government has committed $100 million which is intended to leverage at least $200 million investment in local government infrastructure.
Eligible infrastructure projects may include construction or major renewal, replacement or upgrades to community facilities including:
Under the program, the State Government will provide grants to councils for up to 50 per cent of the cost of approved infrastructure projects. Councils will fund their contribution either through their own reserves or borrowings. Infrastructure projects can include other funding partners, including the Commonwealth Government and/or local businesses.
Applications for the grant will close on 29 January 2021.
Further information can be found in the guidelines which detail the eligibility criteria and how to apply.
Any questions on the Program can be submitted to DTF on LGinfrastructuregrants@sa.gov.au
Residential Rental Grant Scheme - Second Round
The South Australian Government has announced a second round of rental grants of up to $1,000 for residential landlords who reduce the rent of a tenant experiencing rental hardship due to the COVID-19 pandemic.
To be eligible for a second grant, a revised agreement will need to reflect that the landlord has provided rent relief to a tenant since 1 October 2020 and/or will provide such relief before 30 March 2021 (inclusive).
Residential landlords are eligible for a second grant irrespective of whether they received a rental grant in the first round (where appropriate relief has been provided).
Applications for the second round of rental grants will close on 30 March 2021.
To be considered as being in rental hardship, a residential tenant must be significantly impacted by the COVID-19 pandemic, have less than $5,000 in savings and pay more than 30% of their current income in rent.
The tenant and landlord need to demonstrate that a revised rental agreement has been negotiated as part of the application process.
A temporary rent reduction agreement template can be found here:Temporary Rent Reduction Agreement Template
The amount of the rental grant will be calculated on the revised agreement and will be paid to the landlord to offset the provision of reduced rent to the affected tenant.
The rental grant is available for a multi-occupancy house, pro-rated for tenants that meet all other eligibility criteria required under the scheme.
The rental grant is in addition to any land tax relief provided under the Government’s scheme for landlords.
The Department of Human Services will administer the rental grant scheme.
For more information, visit the Frequently Asked Questions page.
$10,000 Emergency Cash Grants for Small Businesses
Small businesses and not-for-profit entities that employ South Australians who have been highly impacted by the COVID-19 pandemic may be eligible to receive a $10,000 grant to support the operation of their business.
The grant is being funded from the State Government’s $650 million Jobs Rescue Package.
To be eligible, businesses and not-for-profits including eligible sporting and community organisations will need to:
- Have an ABN and were carrying on the operation of the business in South Australia on 1 March 2020.
- Employ people in South Australia.
- Have annual turnover of more than $75,000 (GST exclusive).
- Have an annual payroll of less than $1.5 million, and not be entitled to a payroll tax waiver under COVID-19 support measures introduced by the South Australian Government.
- Have been subject to closure or highly impacted by COVID-19 related restrictions^.
- Apply by 1 June 2020.
- Use the funds to support activities related to the operation of the business.
- The business has received any South Australian Government grants provided to address COVID-19 related business impacts, the value of these payment(s) will be deducted from the $10,000 grant.
- The business is part of a group of companies that is registered for payroll tax and will receive the payroll tax waiver, the business is ineligible for this grant.
Applications for the grant will be open until 1 June 2020.
Visit the $10,000 Emergency Cash Grants for Small Businesses page to start your application.
^ Businesses eligible for the Commonwealth payment will be deemed to be highly impacted by COVID-19 restrictions.
Payroll tax relief
Business groups with annual Australian wages of up to $4 million will receive a six month payroll tax waiver. Eligible business groups will not be required to pay any payroll tax in the months of April to September 2020.
The payroll tax waiver is expected to provide maximum assistance of $84,150 over the six months to an estimated 2,400 business groups.
Business groups with annual Australian wages above $4 million that can demonstrate they have been significantly impacted by COVID‑19 will, upon application, be able to defer payroll tax payments for the six months from April to September 2020. For these eligible business groups, payroll tax payments that were due to be paid from April to September will now be due from October 2020.
Further information is available at https://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief
Land tax package
From July, the South Australian Government’s significant land tax reforms will begin, delivering $189 million in savings to investors and landlords over the next three years.
In addition, the Government has announced land tax relief measures to support residential and
non-residential tenants and land owners impacted by COVID-19. These measures include:
eligible non-residential and residential landlords will receive up to 25% land tax waiver on their
2019-20 land tax liabilities for properties leased to tenants who have been financially impacted by the
Land tax relief will apply to eligible landlords who demonstrate that they will pass on at least the value of the land tax relief to affected tenants from 30 March 2020 to 30 October 2020 (inclusive).
Land tax relief will also apply to a landlord with untenanted property if it can be demonstrated that the property was leased to 30 March 2020 but has since become vacant.
Taxpayers who have already paid their 2019-20 land tax liability and are eligible for relief under this scheme will be issued a 25% land tax refund on eligible properties.
eligible taxpayers with an outstanding 2019-20 land tax liability can defer their 2019‑20 remaining land tax payments for up to six months.
an increase to the existing land tax transition fund relief.
It was previously announced that transitional relief equivalent to 50% of the increase in a 2020-21 land tax assessment would be available to eligible taxpayers whose land tax bill had increased as a result of the changes in aggregation of land commencing from 1 July 2020.
This relief will be increased to 100% of the increase in an eligible taxpayer’s 2020-21 land tax assessment, subject to the existing criteria – saving some investors up to an additional $50,000.
Further information on the land tax relief measures is available at https://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief
Water Relief Grant for Sporting Clubs
The State Government recognises that some sporting clubs that have been impacted by the COVID-19 restrictions are still required to maintain playing surfaces, including watering large ovals etc. To support those clubs that have significant water bills to pay, the State Government will provide financial assistance towards water and sewerage bills issued between April and June 2020.
The grant is being funded from the Community and Jobs Support Fund as part of the State Government’s broader $650 million Jobs Rescue Package.
Eligible sporting clubs/associations will receive a grant equivalent to 50 percent of the water and sewerage costs1 incurred in the eligible billing period^.
To be eligible for this grant, a sporting club must:
- Be an incorporated sporting club in South Australia that maintains facilities and grounds2 that require significant water usage;
- Have annual grouped Australian payroll of less than $1.5 million, and not be entitled to a payroll tax waiver under the State Government COVID-19 support measures;
- Be responsible for paying an SA Water (or other water supplier) water and sewerage bill directly or explicitly required to pay for water as part of its lease arrangements e.g. the club makes a specific water contribution as part of its lease to the lessor.
An incorporated association may also be eligible for a Water Relief Grant if it manages a sporting ground on behalf of incorporated sporting clubs that use the grounds on a not-for-profit basis. See the Water Relief Grant Guidelines for full eligibility requirements.
^ Eligible sporting clubs that have received a $10,000 Small Business Grant will receive a Water Relief Grant equivalent to 50 percent of the water and sewerage costs1 incurred during the eligible billing period less the $10,000 Small Business Grant. When determining the size of the Water Relief Grant for associations that manage sporting grounds on behalf of incorporated sporting clubs, regard will be had to whether the association or sporting clubs that use the facilities received the $10,000 Small Business Grant.
Eligibility will be determined based on an application.
Applications for this grant will be open until 30 September 2020.
Further information on the grant and application process is provided on the Water Relief Grant for Sporting Clubs page.
1. Water costs do not include any costs associated with bore water usage.
2. Facilities and grounds exclude hard courts, indoor facilities etc. (e.g. netball courts, basketball courts, volleyball courts or hardcourt tennis courts0.
Job Accelerator Grants
The Government is relaxing the existing Job Accelerator Grant (JAG) criteria requiring an employer to have maintained their overall employment levels to be eligible for their second JAG payment. The Government understands that due to the impact of COVID-19, some employers may not be able to meet this criteria.
Applications for the second JAG payment from 1 February to 30 June 2020 will be assessed on staffing levels as at 31 January 2020 rather than the relevant anniversary date.
Further information is available at https://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief
Liquor licensing fees
The Government will provide a waiver of annual liquor licencing fees for 2020-21 for the following liquor licence categories:
- On Premises
- Restaurant & Catering
- Liquor Production & Sales
- Small Venue
Holders of a General and Hotel licence who have a bottle shop will receive reduced fees, or a full waiver if they do not have a bottle shop.
Packaged Liquor Sales licence fee will not be reduced or waived. Licensees who believe that they should receive a discount may still apply for a fee reduction through the CBS website from 1 June.
For further information please visit https://www.cbs.sa.gov.au/liquor-licence-holders-and-covid-19#
Cost of living concession
The Government will also provide a once off boost of $500 and bring forward the 2020-21 Cost of Living Concession for households who are receiving the Centrelink JobSeeker Payment, assisting those who are unemployed or lose their jobs as a result of the coronavirus restrictions.
For eligible homeowners, their 2020-21 payment of $215.10 will now become $715.10. Eligible tenants will receive $607.60.
For further information available at https://www.sa.gov.au/topics/care-and-support/concessions-and-grants/concessions
Economic and Business Growth Fund
The Government has recently announced increased funding for the Economic and Business Growth Fund under its $350 million economic stimulus package. The Economic and Business Growth Fund was established in 2018 to promote economic growth in South Australia by encouraging growth of existing industries, developing new industries, building international connections, and attracting foreign and national direct investment. Funding support is primarily targeted to support industry or sector wide led initiatives which improve the overall productivity and competitiveness of an industry sector or subsector.
The Economic and Business Growth Fund is supporting the Government’s Growth State Partnership.