SA is the state of small business

The State Liberals are calling on the Weatherill Government to restore the concession on the Emergency Services Levy (ESL) and abandon plans to jack-up payroll tax in the forthcoming state budget.

“The Federal Budget’s tax cut for small business and the surge in federal revenue into South Australia have created a golden opportunity to re-invigorate our State’s moribund economy,” said Shadow Treasurer Rob Lucas.

“The Weatherill Government’s savage increases in the ESL king hit economic growth in South Australia after knocking the stuffing out of consumer confidence in 2014.

“Payroll tax is a tax on jobs and jacking up payroll tax in this year’s State Budget will entrench South Australia as the state of unemployment.

“Abandoning the Weatherill Government’s plan to raise payroll taxes amounts to a $22 million investment in job creation over two years.”

When announcing the introduction of the payroll tax concessions in 2013 the Premier asserted:

“South Australia’s small businesses are often the backbone of a community, providing jobs and services to local people.”

“The good news is that the Federal Budget has given the State Government genuine room to move on economic stimulation,” said Mr Lucas.

Total Federal payments to SA next year will actually be $1,137 million more than this year and by 2018-19 total payments will be $1,756 million more than this year.

 

                                                                    15/16          16/17                17/18           18/19

Specific purpose payments ($m)                 3315           3925              4195             3937

General revenue                                          5573           6101              6399              6707

Total payments                                            8888           10025           10594             10644

 

 

A comparison of these Budget figures with the last Federal estimates included in their December 2015 MYEFO update also show a massive increase in funding to South Australia;

 

                    Increased Federal funds (Budget cf MYEFO) 

2016/17                                                           $96m

2017/18                                                           $547m

2018/19                                                           $509m

Total increase                                                 $1152m

This means that the Weatherill Government will have $1152m more to spend over the next 3 years than it would have expected based on the figures outlined in the December MYEFO.

This increased funding comes in addition to a continued Federal funding commitment to the upgrading of South Road as well as the recent submarine and shipbuilding commitments which will provide long term benefits for South Australia.