The State Government has released figures which indicate about 90 per cent of its total $1 billion COVID-19 economic stimulus package is estimated to have been spent by the end of this financial year.
The unprecedented package was announced by the Government in March to provide important economic stimulus and financial relief and support for local businesses and not-for-profit organisations impacted by the global pandemic and the necessary restrictions imposed to help limit its spread.
Treasurer Rob Lucas said it was critical to have funding support for SA businesses and local jobs available not just in the first 3 months of the pandemic – but over a longer period of time.
“We have carefully constructed a package that not only provides immediate economic stimulus to sustain South Australian jobs but ensures there’s sufficient money left to maintain a level of support and stimulus in the medium term,” Mr Lucas said.
“In the same way the Federal Government has extended its JobKeeper wage subsidy beyond the initial September deadline to March next year, we are ensuring there’s a steady supply of stimulus funding injected into the SA economy.
“The last thing anyone wants is for support to simply fall off a cliff within the first three months of a pandemic. That would have been counterproductive.”
Mr Lucas said stimulus money that was able to be spent quickly has been – including the $10,000 emergency cash grants for small businesses and not-for-profits impacted by COVID-19 restrictions, of which $186 million has already been paid.
More than $13 million has been spent providing thousands of eligible homeowners a once-off $500 cash boost and bring forward of their 2020-21 Cost-of-Living Concession (from $215.10 to $715.10) to help ease cost of living pressures for expenses including water, gas and energy bills.
However, there will be inevitable delays with some elements of the package, for example the land tax transition fund . Eligible property owners will apply for relief once they have their 2020-21 land tax bills, which will arrive in October, and therefore support payments will be made after that.
All infrastructure works are obviously required to undergo usual planning and procurement processes, which can also result in a project starting later than desired.
“Ultimately, we are committed to support SA businesses and jobs through the greatest economic challenge of our time and estimate the lion’s share of our $1 billion stimulus package will be out the door by the end of this financial year,” Mr Lucas said.
- Businesses are not required to lodge their annual payroll tax returns until 14 August 2020, which may impact the total amount of relief expenditure recognised in 2019/20.
- Provides for an increase in relief under the land tax transition fund to eligible taxpayers whose land tax bill will increase as a result of the changes in aggregation of land ownerships commencing from 1 July 2020, and a deferral of outstanding 2019-20 land tax liabilities for up to six months. The estimated $50 million cost of the 25% waiver of 2019-20 land tax liabilities for properties leased to eligible tenants that have been significantly impacted by COVID-19 is funded from the Business and Jobs Support Fund.
- $70 million of budget has been transferred from the Community and Jobs Support Fund to the Business and Jobs Support Fund.
- Relaxation of existing Job Accelerator Grant Criteria. $3 million budget is to recognise the ongoing payment of Job Accelerator Grants to grant recipients during COVID-19 pandemic restrictions, irrespective of whether an eligible employee was stood-down or released. It has been assumed that the cost of the Job Accelerator Grant Scheme would have reduced significantly in the event that the continuous employment criteria was upheld during COVID-19.
