Business SA is calling for the State Government to include further incentives and changes to payroll tax, increased funding to assist the Human Service sector transition and implement a Gas Efficiency Program as it considers the June State Budget.
Business SA’s 2019-20 pre-budget submission outlines 17 priorities in taxation, energy, infrastructure, public sector reform and work, health and safety.
While Business SA has previously praised the State Government for cutting payroll tax, Executive Director of Industry and Government Engagement, Anthony Penney, said he would like to see “further incentives offered to both attract new companies, and reward existing companies conditional on remaining headquartered in South Australia.”
“In the process of reducing the payroll tax rate to 4.5 per cent by 1 July 2023, Business SA would like to see the reduced rate only made available to companies which either move to, or retain, their headquarters in South Australia,” Mr Penney said.
“This would be a symbolic step away from picking economic winners, by showing South Australia is a genuinely competitive place to do business and could mean more international businesses either settle here or large Australian companies move or stay here.
“We would also like to see payroll tax incentives given to businesses which employ science, technology, engineering and maths PhD graduates, to increase collaboration between universities and business, with an exemption equivalent to 200 per cent of wages.”
Energy costs remain a significant issue in South Australia. Business SA is calling for a Gas Efficiency Program to ensure appropriate assistance is available to businesses to reduce gas use or find viable alternatives.
While the Joy Baluch Bridge duplication in Port Augusta has been funded, Business SA would like to see the State Government fund a business case to investigate duplicating the Augusta Highway from Port Wakefield to Port Augusta.
“Dual lane access to South Australia’s most northern city will increasingly make sense, and it’s no different to how stages are being gradually completed to provide a continuous North-South Corridor through Adelaide. The State Government could also consider a staged approach to major regional infrastructure needs.”
The fastest growing sector in our economy, human services, is going through immense change and funding needs to be desperately allocated to deliver on the workforce strategy currently being developed as well as research to inform service delivery and industry collaboration.
Business SA recognises South Australia will be in a tighter fiscal position with less GST than previously forecast, but 2018-19 GST revenues are still five per cent higher than for 2017-18 with slightly positive growth into 2019-20.
To arrange an interview please contact Verity Edwards on 0412 678 942.
7 April 2019