The 2021-22 SA State Budget was handed down by the Marshall Government on Tuesday 23 June. In the wake of COVID-19 and significant changes to land tax in recent years, there was no expectation of wholesale changes to State taxes.
Below are the initiatives which may have some relevance to you and your business:
1. Payroll Tax Exemption for Apprentices/Trainees
The 2020-21 Budget introduced a 12-month exemption from payroll tax on wages paid to apprentices and trainees who commenced a relevant training contract between 10 November 2020 and 30 June 2021. The exemption applies from the date of the relevant apprentice/trainee’s commencement.
The Government has announced a 12-month extension of this initiative to 30 June 2022. That is, a 12-month exemption from payroll tax is available on wages paid to apprentices and trainees who commenced a relevant training contract between 10 November 2020 and 30 June 2022.
2. Payroll Tax Exemption – Wages Paid for Film Production
The exemption and associated ex gratia relief for wages paid to employees employed in the production of a film primarily set and filmed in South Australia is set to be abolished from 1 July 2021.
3. Land Tax Transition Fund
Transitional relief is available for taxpayers who have experienced an increase in their Land Tax Assessment for 2020-21, 2021-22 and 2022-23 as a result of the changes in the aggregation of land which came into effect from midnight on 30 June 2020.
A taxpayer is eligible for relief if their Land Tax Assessment in 2020-21, 2021-22 or 2022-23 has increased by:
- greater than $2,500; and
- less than or equal to $102,500.
A taxpayer is ineligible for the relief if:
- the increase in their land tax assessment is above $102,500; or
- the increase results from higher trust rates of land tax.
The Government has announced that the relief provided in the 2021/22 income year will now be 70% of the increase in land tax experienced. The relief in each year can therefore be summarised as follows:
4. Liquor Licence Fee
This initiative halves 2021-22 annual liquor licence fees for eligible businesses impacted by COVID-19 safety measures. Licensed businesses that were in receipt of JobKeeper payments in the second extension from January to March 2021 are eligible for the fee relief.
5. Emergency Services Levy – Increase in General Remission
The Government is increasing their contribution to the ESL fund such that the ESL borne by the land owner directly should be marginally reduced in 2021/22. Essentially, the general remission is the amount the Government contributes to the ESL fund out of general revenue, thus reducing the amount invoiced to land owners directly. This measure provides an increase in ESL general remissions of $5.4 million in 2021-22, increasing the total level of general remissions funded by the government to $95.4 million. Of course, as property owners, fund general revenue via other taxes, this initiative does not necessarily result in less imports on those owners.
