Tax, Industry & Small Business
Tax liabilities & rising insurance premiums remain handbrakes.
These constitute significant constraints on business growth in South Australia.
Reducing the tax burden for small business
Across the board, payroll tax and company tax feature most commonly as primary constraints on business growth in South Australia. ReturnToWork insurance premiums are also important, notably in key sectors such as manufacturing which governments of both persuasions are always eager to grow, particularly since the exit of major auto-manufacturing from South Australia in 2017.
The South Australian Business Chamber recognises that South Australia is in a much better position on state taxes than a decade ago. For a start, businesses with wages below $1.5m no longer face payroll tax and our ReturnToWork premiums have reduced from close to 3 per cent in 2015 to almost half that level today. There is also no stamp duty on business transfers or commercial property. While the reform process for land tax was far from ideal, we now have a system where the rates are far more competitive nationally. With Victoria’s recent move to increase its land tax rates, South Australia is well positioned to attract business. All that said, tax reform continues to evolve and our neighbouring states and jurisdictions around the world are not slowing down their efforts to ensure their own businesses are export competitive. This is equally important for state-based taxes like payroll tax, and federal taxes, including company tax. It is also critical to recognise that South Australian businesses look to the State Government to both ensure state taxes are as competitive as possible, and to work as part of the Commonwealth for the most efficient and competitive suite of federal taxes, particularly company tax where Australia’s 30 per cent general rate remains well above the OECD average of 23 per cent.
Payroll tax exemptions are a great benefit
Business have told us that the recent payroll tax exemption has been of significant assistance. Making the payroll tax exemption for apprentices and trainees
permanent will assist in filling the skills gap and encouraging business to both employ and train new staff, and upskill current employees in areas of need, particularly in digital skills. However, some 37,000 employing businesses in South Australia are small businesses employing less than 20 employees, most of whom do not have an annual taxable payroll in excess of $1.5m. An enticement similar in value to the payroll tax exemptions must be offered to realise this untapped potential.
If you’d like to get in touch with our Policy and Advocacy Team, please submit an online enquiry and one of our staff will get back in touch with you.
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Tax, Industry and Small Business Publications
PDFs
The South Australian Business Chamber submission: ACCC collective bargaining class exemption notice
PDFs
The South Australian Business Chamber submission: Review of Small Business Tax Concessions
PDFs
The South Australian Business Chamber submission: Productivity Commission’s Draft Report on Horizontal Fiscal Equalisation
PDFs
The South Australian Business Chamber submission: Labour Hire Licensing Bill 2017
Policy and Advocacy Lead
Kendall Crowe
General Manager, Policy, Advocacy and International Services
Contact our Policy and Advocacy team
Submit the enquiry form and one of our staff will get in touch with you.
