Tax changes impacting South Australian businesses

Listed below are the key tax changes which impact South Australian small to medium sized businesses. 

Jobs Accelerator Grant Scheme 

The Government has announced a Job Accelerator Grant Scheme to encourage South Australian businesses to employ additional employees, and employ them for a period of at least 12 months.

A Job Accelerator Grant of up to $10,000 ($5,000 each year for two years) per new Full-Time Equivalent (FTE) job created is available for businesses liable for payroll tax in South Australia with total Australian wages of $5 million or less.

A Job Accelerator Grant for Small Business & Start-ups of up to $4,000 ($2,000 each year for two years) per new job created is available for most businesses that are not liable for payroll tax. This includes businesses with Australian wages below the payroll tax free threshold (currently $600,000) and most organisations that are exempt from payroll tax (e.g. public benevolent institution).

Businesses that increase their number of South Australian employees will be eligible to receive a grant for each additional worker employed by them in a new position between 1 July 2016 and 30 June 2018. The grant will be paid at the first and second anniversary date of employment.

Businesses must register a new employee within 90 days of the employee’s commencement date.

The extension of the small business payroll tax rebate 

It was announced that the small business payroll tax rebate will be extended for the next four years.  The small business payroll tax rebate operates to provide eligible employers with a taxable Australian payroll of less than or equal to $1.2 million with a rebate of up to 50% of their payroll tax liability.