State Government announces $650 million job rescue package to help workers struggling after coronavirus shutdown
Premier Steven Marshall has revealed full details of the second state stimulus package, which brings state government spending to $1 billion.
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Premier Steven Marshall has announced details for the State Government’s second stimulus package.
The $650 million package will be split between two new funds.
A $300m Business and Jobs Support Fund will be used to directly assist individual businesses and industry sectors facing potential collapse and the loss of thousands of jobs due to the ongoing impacts of coronavirus and necessary new restrictions to limit its spread.
And a new $250m Community and Jobs Support Fund will help assist community organisations, such as sporting, arts and recreational bodies, non-profit organisations and some other industry sectors
Mr Marshall said this fund will also help with training of South Australians seeking new skills and employment and to assist organisations meet increased demand for services including emergency relief.
Among the new initiatives in the Government’s second stimulus package:
Payroll tax relief (up to $60m of savings to business)
6-month waiver for all businesses with an annual payroll (grouped) up to $4 million
Eligible businesses won’t have to pay any payroll tax from April to September
This measure is expected to assist up to 2,400 businesses and save them up to $84,000 over the six months (average saving $25,000)
Employers with grouped annual wages above $4 million able to defer payroll tax payments for six months on demonstration of significant impacts on cash flow of coronavirus
Around 4,300 businesses will be able to access this payroll deferral and is expected to increase overall cash flow by around $580 million.
Land tax relief (up to $13m in additional savings)
From July, the Government’s significant land tax reforms will kick in, delivering $189m in savings to investors and landlords over the next three years.
Under the new measures, individuals and businesses with outstanding quarterly bills for 2019-20 able to defer payments for 6 months (up to 28,000 private land tax ownerships will benefit)
For 2020-21 Land Tax Transition Fund relief will be increased from 50% to 100% based on existing relief criteria guidelines – saving some investors up to $50,000
Fees and Charges
Waiver of liquor licence fees for 2020-21 for those hotels, restaurants, cafes and clubs forced to close as a result of new social distancing restrictions
$300 million Business and Jobs Support Fund
A fund to support individual businesses and industry sectors directly affected by coronavirus, and face potential collapse – and the loss of thousands of jobs – as a result
$250 million Community and Jobs Fund
A fund to support community organisations, sporting, arts and recreational bodies, non-profit organisations as well as some industry sectors whose operations have been impacted by the coronavirus
Will also help with training of South Australians seeking new skills and employment and to assist organisations meet increased demand for services including emergency relief.
Cost of Living Concessions (An estimated additional benefit of about $30 million)
A once-off boost of $500 and bring forward the 2020-21 ‘Cost of Living Concession’ for households who are receiving the Centrelink Jobseeker Payment, assisting those who are unemployed or lose their jobs as a result of the coronavirus restrictions.
For eligible homeowners, their 2020-21 payment of $215.10 will now become $715.10. Eligible tenants will receive $607.60.
Access to accrued leave for public sector workforce
If a public servant has a family member who has lost their job and moved onto Commonwealth benefits, they will be able to receive their accrued leave down to a limit of 2 retained weeks (annual and long service leave)
Opposition Treasury spokesman Stephen Mullighan said the stimulus needed to have a heavy focus on households.
Labor had been calling for any stimulus to be focused on making sure as much money as possible ended up in the back pockets of South Australian immediately.
“In recent weeks, Labor has put forward a series of ideas, including slashing fees, charges and taxes on business and households, stamp duty relief, business support funds, increased energy concessions and waiving a raft of taxes on business, such as payroll tax and liquor licence fees,” Mr Mullighan said.
In other key changes:
SERVICE Australia phone lines hours have been extended, while more staff are being deployed in call centres and to process welfare claims.
A NEW function means Australians out of work were able to register their intent to claim for Centrelink payments within two clicks, after logging into their MyGov account.
Ms Ruston said: “We want all South Australians to be able to bounce back once we are through this difficult situation, which is why the Government has temporarily supercharged the social security system.
“The Government is working as hard as we can to ramp up services and improve processes to make asking for help as easy as possible.”
Meanwhile, Commissioner for Public Sector Employment Erma Ranieri has written to public sector employees advising them that they are now entitled to “a new category of special leave with pay of up to 15 days” to support absences from work due to COVID-19.
Local Government Association SA chief executive Matt Pinnegar has urged councils to replicate the measure. “It would deter workers who are feeling unwell or may have been exposed to the virus from attending work and potentially infecting others,” Mr Pinnegar said. “This would be in addition to any other leave entitlements, and kick in before employees would be required to take sick, annual or long service leave.”
Hip-pocket relief is on its way for households in coming days, as the Federal Government works with energy companies to reduce power bills. Rent assistance for tenants that have lost work because of COVID-19 is also set to be announced soon. Prime Minister Scott Morrison and state leaders were working to finalise details on Wednesday night.
“This is obviously a complicated issue because you’ve got a tenant, you’ve got a landlord, you’ve got creditors and all of those issues … you need to solve for the entire chain that’s there,” Mr Morrison said. .
Mortgage relief for homeowners unable to make repayments is also likely, with Mr Morrison flagging it as another important measures.
Labor and unions want the Federal Government to follow the UK and introduce a wage subsidy rather than let jobless people queue for days for benefits. But Mr Morrison said the Government was already providing money to businesses to help them retain their staff.
with Claire Bickers and
Elizabeth Henson