South Australian Business News

15 ways the State Budget can take business to new heights

Kendall Crowe
Thursday, May 25th 2023

Today we announce our submission of 15 recommendations for the State Government to consider ahead of the 2023/24 State Budget. 

This is an opportune time for the State Government to craft a budget that continues to strengthen business confidence in SA, while recognising the pressure South Australia’s business community is under given inflation, a shortage of skilled labour and rapidly rising wage and energy costs.

We want to see South Australia continue to build on its profile as a great place to do business. 

Despite economic challenges, business conditions continue to improve, and business confidence remains above the national average according to the most recent The South Australian Business Chamber William Buck Survey of Business Expectations.

There was very little for businesses in the Federal Budget. We are now looking to the state to fund some practical and innovative measures to support South Australian businesses as they navigate complex economic circumstances.

We appreciate this budget comes during a time of economic recovery from COVID-19 and the River Murray flood disaster, so we have endeavoured to supply recommendations providing maximum impact for South Australia without great cost to the State Government.

Recommendations as follows

Introduce a State Government-funded, paid internship program to encourage university graduates to start their careers in South Australia

Establishing a State Government-funded paid internship program, with a possible co-payment from business, would help keep South Australian graduates in the state and ensure we remain competitive against other states in the fight to attract skilled workers.

Create a program to connect overseas migrants with prospective South Australian employers

The South Australian Business Chamber recommends establishing a Job Matching Portal for employers and future migrants. Organised by industry sectors, workers could upload their resumes while still offshore to find jobs matching their skills and qualifications. South Australian businesses would then have greater access to the right people early in the migration process, which may well be the difference between the worker choosing South Australia over other states/​territories and even other countries as the global competition for talent intensifies.

Roll out an awareness campaign about the benefits of the Temporary Graduate – Post Study Work Visa

An awareness campaign promoting the 485 visa is necessary to ensure international graduates remain in South Australia after completing their studies. The main emphasis of this campaign should be that 485 visa is a provisional visa, rather than a temporary one, and that an international graduate can continue working for the business once the necessary conditions are met and they obtain permanent residency.

Subsidise a portion of skilled migrants’ visa fees to attract them to South Australia

To encourage migration to South Australia, the South Australian Business Chamber recommends the State Government subsidises a portion of the application fee for successful applicants nominated under in-demand professions (e.g. GPs) for the State-Sponsored skilled regional 491 (provisional) visas. If applicants for a 190 (permanent visa) are willing to live and work in South Australia for a stipulated period, for instance, three years, they could also qualify for this subsidy. Should they choose to leave South Australia and relocate interstate, they would be required to pay the subsidy back to the State Government.

Establish a fund providing micro-grants for businesses to conduct energy audits and invest in generating and storing renewable energy

The South Australian Business Chamber recommends the State Government provides micro-grants of between $3,000-$5,000 for businesses to conduct an energy audit and determine what steps are required to become more energy efficient to reduce costs and increase confidence in the ongoing energy transition. Further, we propose these grants could also be used towards the cost of generating or storing renewable energy, for instance, solar panels or batteries. A requirement should be made for the grant money to be spent only on goods and services provided by South Australian businesses.

Introduce a Circular Economy Procurement Fund to promote and drive the transition from a linear to a circular economy

The establishment of a Circular Economy Procurement Fund would promote South Australia as a leading developer of the circular economy and would enable the State Government to allocate resources specifically toward promoting circular economy principles in government procurement processes. Appreciating that circular products, services or equipment are potentially more expensive than other options, the fund would incentivise the adoption of circular practices and to support the development of a circular economy.

Introduce an all-electric and/​or hydrogen public transport fleet with supporting infrastructure

In 2022, 70.7% of South Australia’s electricity was generated from renewables, the highest percentage in the world. Given this, we must constantly look for more opportunities to use green energy, reduce carbon emissions and bolster our national and global credentials as a green state. If we are to utilise hydrogen to its full potential, and we will certainly see more hydrogen vehicles on the road in future, the State must lead by example beginning with a commitment to move its entire public transport fleet to electric/​hydrogen operated vehicles. Likely an iterative process, as vehicles are decommissioned they should be replaced with electric or hydrogen fuel cell alternatives.

Lift the payroll tax threshold

Increasing the threshold for payroll tax would enhance the national competitiveness of South Australian businesses and create an environment more conducive for small business to operate in and thrive, without the fear of inadvertently tipping into the payroll tax band because they have increased staff wages.

Encourage business development and investment in regional South Australia by introducing a 50% payroll tax discount.

The South Australian Business Chamber believes that reducing the payroll tax rate in regional South Australia, as is commonplace in other states (e.g. Victoria provides a 75% regional discount; Queensland provides a full 1% (100 basis points) regional discount) would incentivise businesses to move to the regions, thereby stimulating and diversifying those economies. It would also improve their competitiveness compared to interstate regional counterparts.

Sponsor an exhibition by world-renowned glass artist Dale Chihuly

Dale Chihuly’s botanic gardens exhibits have become iconic projects around the world. His most recent exhibitions have attracted over one million visitors at London’s Kew Gardens and over half a million at Singapore’s Gardens by the Bay. The Botanic Gardens and State Herbarium (BGSH) is currently exploring the feasibility of bringing this exhibition to Adelaide. The South Australian Business Chamber proposes that the State Government sponsors this exhibition, which would promote Adelaide’s image on the global stage, would engage South Australia’s significant arts community and become a major tourist attraction.

Conduct a feasibility study on Adelaide’s potential hosting of the United Nations Conference of the Parties (UN COP)

Hosting the UN COP would be an opportunity to position South Australia as Australia’s greenest state. We have strong credentials to bid for this event, as we are a global leader in renewables having generated 70.7% of our electricity from renewable sources in 2022 (above Denmark, Ireland and Germany). Furthermore, Adelaide already has a solid track record in organising flagship global events. Hosting the COP would attract between 20,000 and 30,000 people (COP26 in Glasgow had record attendance — 40,000), boost the economy and further cement our credentials as a global leader in renewable energy, enhancing Adelaide’s global reputation.

Reinvigorate Adelaide’s Sister City programs to spark genuine transfer of knowledge, skills and trade between cities

Adelaide has several Sister Cities, Christchurch, New Zealand; Penang, Malaysia; Himeji, Japan; Austin, United States; and Qingdao, China. Initially established for a variety of reasons, including promotion of cultural exchange and economic cooperation, they are now largely symbolic and somewhat neglected and dormant. There is much more that can be done to leverage the potential of these relationships to benefit Adelaide.

Introduce a program to build a South Australian small business eco-system to ensure our SMEs are defence ready

The South Australian Business Chamber recommends that the State Government introduces a new program to build a small business ecosystem to make sure small and medium-sized enterprises (SMEs) are ready to take advantage of the opportunities in the defence sector.

The proposed program is especially crucial in light of the AUKUS agreement. With eight nuclear powered submarines set to be built at Osborne, South Australia, there will be a surge in demand for defence-related products and services. This presents a unique opportunity for SMEs in South Australia to participate in the defence industry supply chain, improve their advanced manufacturing capabilities, contribute to the development of cutting-edge defence technologies, and compete effectively in the global defence market.

Ensure the Return to Work Scheme average premium rate will not rise above 1.9%

The South Australian Business Chamber urges the State Government to monitor South Australia’s average premium rates, as well as how they compare to other states and territories.

The South Australian Return to Work scheme must remain viable. This can only be achieved by ensuring that, like any insurance underwriter, the Scheme can afford its claims. We also urge the State Government to improve cost competitiveness in a manner that does not compromise return to work’ outcomes for injured workers.

SafeWork SA must be adequately resourced to effectively administer the Work Health and Safety Act 2012 & deliver the outcomes expected in the Australian Work Health Safety Strategy 2023 – 2033 and recommendations of the Independent Review of SafeWork SA 2022

While we recognise that SafeWork SA has significant expertise, over the past few years its ability to deliver as required has been eroded due to a range of issues. The South Australian Business Chamber is concerned that without adequate resourcing, SafeWork SA will be unable to fulfill its obligations and meet the requirements of the Australian Work Health and Safety Strategy 2023 – 2033 and the Independent Review of SafeWork SA (the Review).


The full submission with detail on every recommendation can be downloaded here 

Author

Kendall Crowe

General Manager, Policy, Advocacy and International Services
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