Friday, September 22, 2017

SA budget delivers lift for tourism

Budget measures announced in the 2017-18 South Australian Budget will deliver positive outcomes for small businesses in the state’s tourism and hospitality sectors, according to peak industry body Restaurant & Catering Australia (R&CA).

The South Australian Government has announced that small businesses with payrolls between $600,000 and $1 million will receive a permanent reduction in their payroll tax rate to 2.5 percent.

R&CA CEO John Hart welcomed the South Australian Government’s adjusted payroll tax rates which will ease pressure on small businesses such as cafés and restaurants currently faced with soaring labour costs.

“We are pleased that the South Australian Government’s has recognised the difficulties in the current operating environment facing the state’s small businesses.

“For South Australia’s 2,200 cafés and restaurants, the cost of wages and staff on-costs can represent as much as 44 per cent of overall business expenditure.”

“The reductions in payroll tax rates will provide many of these business owners with some much-needed relief,” Mr Hart said.

The South Australian Government also announced an expansion of the Jobs Accelerator Grants Scheme meaning that businesses with payrolls up to $600,000 will be able to receive funding grants up to $9,000 for employing new apprentices and trainees.

“The funding delivered for the Jobs Accelerator Grant Scheme will benefit small businesses in the hospitality sector as well the apprentices and trainees themselves who will be able to gain the vital workplace skills and experience they need to succeed in their future careers.”

Mr Hart also praised the South Australian Government for its focus on key sectors of employment growth including tourism, food and wine with $200 million allocated to establish the Future Jobs Fund. “Without an adequate investment of funds as we have seen from the South Australian Government, the potential jobs growth in sectors like tourism may never be fully realised.

“The investment contained in the 2017-18 South Australian Budget will ensure that the state’s tourism, food and wine industry can continue to be one of the major pillars of the state’s economy,” Mr Hart said.

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