Nov 11, 2020 / News

Business Consulting / Taxation

State Budget 2020-21 Update

The SA State Budget 2020-21 was delivered on 10 November 2020, and included the following proposed taxation relief to assist businesses:

Small Business Grants (Round 2)

  • A second round of $10,000 grants to small businesses and not-for-profits who remain adversely impacted by COVID-19, and
  • A $3,000 grant for owner operated small businesses conducted from a commercial premise that doesn’t employ staff
  • To check eligability and apply contact your Nexia Edwards Marshall Advisor or visit the Small Business Grant (Round 2) application website. 

Payroll Tax Relief

  • Businesses and business groups with annual Australian grouped wages up to $4m
    • 15-month waiver of payroll tax from April 2020 to June 2021 (return period of March 2020 to May 2021)
  • Businesses and business groups with annual Australian grouped wages over $4m
    • 6-month waiver of payroll tax from January 2021 to June 2021 (return period of December 2020 to May 2021) for businesses whose employees are eligible for JobKeeper from 4 January 2021 to 28 March 2021
    • Up to a 9-month deferral of payroll tax from the March 2020 to November 2020 return period until 14 January 2021 for businesses adversely impacted by COVID-19

      Extended repayment arrangements for deferred payroll tax are also available
  • Apprentices and Trainees
    • A payroll tax exemption on wages paid to new eligible apprentices and trainees for the first 12 months who commence a relevant contract of training from 10 November 2020 to 30 June 2021

Land Tax Relief (as previously announced)

  • Land tax relief for landlords and commercial owner occupiers
    • Landlords (both residential and non-residential) can receive up to a 50% reduction on their 2019-20 land tax liability on affected taxable properties in SA, where they have provided relief to tenants affected by Covid-19 or lost income due to a vacancy
    • Commercial owner-occupier businesses who are eligible for JobKeeper payments from 31 October 2020 (either extension period 1 or extension period 2) and have annual turnover of not more than $50m can receive up to a 25% reduction on their 2019-20 land tax liability on affected taxable properties in SA
  • Land tax reform transition fund
    • Relief is available to eligible taxpayers whose land tax bill will increase by more than $2,500 but not more than $102,500 due to the changes in aggregation of land commencing 1 July 2020. The relief has increased from 50% to 100% of the increase in an eligible taxpayer’s 2020/21 land tax assessment.

      The relief will not be provided to trusts, (i.e. on higher trust rates that may be payable by trusts). And the taxpayer will need to be up to date with their land tax payments to be eligible to apply for this relief

For further land tax relief details, please visit our article on Revenue SA: COVID-19 Land Tax Relief

How can Nexia Edwards Marshall help you?

If you have any questions or require assistance with applying for SA state taxes tax relief, please contact our South Australian Taxes expert George Papanicolaou or your Nexia Edwards Marshall advisor.

The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.