Business SA releases 13 point blueprint to kickstart South Australia’s economy after the shock of the coronavirus pandemic
South Australia’s peak business body has unveiled a 13-point blueprint designed to recover thousands of jobs lost in the state as a result of the devastating coronavirus pandemic. SEE THE PLAN.
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Tax relief to revive the hospitality sector and a Made in SA campaign are being flagged as part of a plan to spearhead the state’s economic recovery from the COVID-19 pandemic.
The blueprint has been produced after four “virtual summits” with more than 50 industry leaders.
The Business SA report details measures aimed at helping firms now and to kickstart the post-virus economy.
Business SA chief executive officer Martin Haese said regional areas would be important in the economic recovery and needed significant support to restart.
“Hospitality and tourism businesses are often the lifeblood of smaller towns and their main streets, and what we heard from our regional virtual summit last month was that while our major cities have been hit hard, our regions have been hit if not harder,” he said.
Measures proposed in the 13-point plan include fringe benefits tax relief, starting a Made in SA campaign to trigger a manufacturing recovery, implementing a boosted first homeowner grant and a home renovator grant to stimulate the construction sector.
Premier Steven Marshall said the State Government was working with Business SA on the proposals, while Opposition Leader Peter Malinauskas renewed calls to waive council rates for businesses forced to close during the pandemic.
Mr Haese said an FBT exemption for at least 12 months would aid recovery in the hard-hit hospitality and tourism sectors, in which latest Australian Bureau of Statistics figures suggest more than 18,000 SA jobs have been lost since February.
“This (tax exemption) would boost employment, create demand and encourage metro-based businesses to hold their next conference or event, once it is safe to do so, in our regions,” Mr Haese said.
“It would also help strengthen travel within SA while our borders remain closed.”
FBT is applied to businesses providing food or drink as entertainment, and an exemption for restaurants, cafes and hotels would likely stimulate much-needed spending.
Mr Haese called for councils to be helped in creating a broader network of cycling paths linking key regional tourist destinations from the Clare Valley through to McLaren Vale, and for SA to be promoted as the nation’s premier cycling tourism destination.
He urged governments and councils to fast-track feasibility studies to enable regional infrastructure programs such as these.
“Without sacrificing necessary due diligence, it is important to get infrastructure projects to the shovel-ready stage to help restore confidence in these towns, which is desperately needed,” Mr Haese said.
Other key blueprint recommendations include:
FAST-TRACKING digitisation of government services and helping virus-hit businesses digitise operations;
EXTRA funding to accelerate maintenance projects in government-funded institutions such as TAFE and schools;
RELIEF for tenants and landlords such as council rate waivers and land tax and emergency service levy reductions, and;
RELAXING eligibility criteria for training wage subsidies and a possible payroll tax exemption to maintain or hire apprentices.
Mr Haese said Business SA backed federal Industry Minister Karen Andrews’ comments last week about strengthening domestic manufacturing and supply chains.
“Tax and IR reform and industry/university sector collaboration are just some areas that could, and should, be looked at to stimulate a stronger local manufacturing sector,” he said.
“This is about creating new jobs. If we can identify new manufacturing niches, we have people with unique skills sets who live in our regions that are ready to take up these opportunities.” An FBT relief policy and a Made in SA campaign both had merit, he said.
Mr Marshall said the economic recovery was a priority for the Government.
“We were the first state to move with our first stimulus package, we were the first state to move on our second stimulus package” he said.
“I am happy to put my support up against any other jurisdiction in the country. We are doing everything we can to back businesses in SA.
“We are down in the trenches with businesses in SA, trying to get them back and operational and profitable as quickly as possible.”
Mr Malinauskas welcomed the Business SA recommendations, saying he was deeply concerned about the human cost of the pandemic’s economic crisis when more than 44,000 South Australians had lost their jobs in a month.
“South Australians have been outstanding with their response to the COVID-19 health crisis, but Steven Marshall’s response to the economic crisis has been very lacklustre, as demonstrated by SA recording the worst unemployment rate in Australia and the worst economic performance in Australia in the ANZ Stateometer,” he said.
“This report highlights the need for the State Government to fast-track its delayed stimulus spending, especially on shovel-ready projects.”
TRUST BUSINESSES TO TRADE SAFELY
Victor Harbor cafe owner Kirsten Pitman wants businesses to be handed responsibility for trading safely as they aim to return to profitability after the pandemic shutdown.
A former Flinders Medical Centre emergency department nurse, Mrs Pitman understands the importance of hygiene and believes other business owners also are responsibly educating themselves.
“They understand that if they get this right and they do it well, it’s good for everybody. It’s good for their business, it’s good for the community, it’s good for their customers, it’s definitely good for their staff – they’ve got to keep their staff safe,” said Mrs Pitman, who owns and operates Nino’s cafe with husband Simon.
“It’s different for everybody, so maybe focusing on getting the businesses to promote what it is that they can do is going to be the best thing that makes good sense going forward.”
Premier Steven Marshall is vowing a “principles-based approach” for the June 5 reopening will be released within days, under which each business and sector will have their own set of rules based on guidelines.
Business Victor Harbor chairman Michael Schubert, owner of Shed Boss Fleurieu, praised a $250,000 Victor Harbor Council scheme offering grants of up to $5000 directly to help kickstart firms’ recovery from the pandemic’s economic hit.
The area’s tourism-based economy had been ravaged but Mr Schubert said he was confident about the future, highlighting an investment pipeline including a planned $40 million, six-storey redevelopment of the seafront Anchorage Hotel.
LEADING STATE OF EXCITEMENT
Seppetsfield owner Warren Randall is itching to reopen his award-winning winery and restaurant complex to show leadership in Australia’s premier wine region, the Barossa Valley.
With borders closed and intrastate travel reopened, Mr Randall wants to showcase the region by trading responsibly, safely and adhering to health guidelines.
Mr Randall is bullish about the state’s attractions and its future. A $50 million, six-star, 12-storey luxury hotel is the centrepiece of Seppeltsfield’s bid to become one of the world’s top five wineries.
“We’ve got seven per cent of Australia’s people but 70 per cent of Australia’s excitement,” Mr Randall said.
“We’re ready to celebrate winning the battle against the virus – so far at least.
“Our state has done remarkably well, probably the best in the country under the guidance of our Premier Steven Marshall, so we should celebrate that victory
“We’re just all waiting on the go-ahead to open beautiful estates like Seppeltsfield to lead the way.”
The State Government has drawn criticism from hoteliers and others for allowing restaurants and cafes to re-open but not those based in wineries.
Mr Randall said the renowned Fino restaurant, part of the Seppeltsfield complex, had reopened this weekend under appropriate scrutiny and health guidelines.