Thursday’s State Budget delivered little support for small businesses that are currently facing a perfect storm of cost pressures – with soaring electricity, water, insurance and rental prices and the ongoing burden of payroll tax placing significant burden on day-to-day operations.
Leader of the Opposition, Vincent Tarzia said that current conditions mean many South Australian small businesses are now operating with such razor thin margins that they have no choice but to try and cut their spending – including closing on public holidays.
“For many business owners, keeping their doors open, especially on public holidays, is a real challenge due to rising costs across the board,” Mr Tarzia said.
“It was disappointing to see such little relief in the State Budget for small businesses – especially given the number of permanent closures recently, especially in the hospitality sector.
“We need to be making it easier, not harder, for small businesses to thrive here in South Australia and that’s why we’ve called on the Government to cut red tape, introduce measures to lower electricity prices and increase the payroll tax threshold from $1.5 million to $2.1 million.”
Shadow Minister for Cost of Living, Heidi Girolamo added that a recent increase to the minimum wage has pushed many small businesses above the current payroll tax threshold.
“We welcome increases to the minimum wage, but the payroll tax threshold needs to be adjusted accordingly at a minimum to ensure that there aren’t added pressures on our small businesses here in South Australia,” Ms Girolamo said.
“Any increase in operating costs makes it harder for businesses to develop, hire new staff, or invest in growth – which is the opposite of what we want for our state.
“State Budget papers also revealed that the Government will collect a record $2.4 billion by 2028-29 in payroll tax revenue while many businesses around the state struggle to make ends meet.
“We want to see this revenue back into the pockets of hardworking South Australian business owners, not the Government’s coffers.
“Increasing the payroll tax threshold is just one common-sense measure that would provide meaningful relief for small businesses now.”
