With the vitally important 2021/22 State Budget being handed down today, and with the end of the financial year fast approaching, I reflect on what a different position South Australian businesses were in only twelve months ago.
Although many businesses were gradually returning to trade in June 2020, most were still riddled with uncertainty and hoping that last year’s State Budget would support them through the turbulence. Treasurer Lucas delivered the goods and as the peak body for business in South Australia, the South Australian Business Chamber was grateful for it.
The bounce back following the first lockdown in 2020 was unexpected and other than the disruption caused by a subsequent lockdown in November, business confidence has continued to build.
As we learned from the results of the March 2021 Quarter of the South Australian Business Chamber — William Buck Survey of Business Expectations, business conditions have again risen now to their highest level since just prior to the Global Financial Crisis, and business confidence was not far behind.
Although most businesses are doing better than expected, our quarterly ‘SOBE’ survey also determined that 21 per cent of businesses expect their revenues to be below 70 per cent of pre COVID levels by the end of this quarter. That is of concern… therefore today’s State Budget needs to back all businesses, with a focus on initiatives that both grow our economy and support small businesses that are still experiencing hardship.
The unfortunate reality is this pandemic is far from over. Although on a local level, South Australia is thankfully performing well but the risk of COVID outbreaks is still front of mind for many small business owners, as demonstrated by lockdowns over the border in Victoria earlier this month.
In April this year, I handed our pre-budget submission to Treasurer Rob Lucas. It included a suite of 13 recommendations from the South Australian Business Chamber. These recommendations are far more than hours upon hours of work from my expert team, let me tell you. These are genuine pleas from our members, the coal face of the business community across South Australia.
Today’s budget MUST address a funding mechanism to support South Australian SMEs through future periods of severe restrictions. It MUST support the events, arts and live performance sectors who are still heavily impacted by restrictions. Temporary payroll tax waivers SHOULD be extended for those businesses most acutely impacted by ongoing restrictions including closed international borders, and Adelaide’s CBD SHOULD have a bright spotlight shone upon it through a cold and dark winter, with hospitality, retail and accommodation sectors struggling to perform without international tourists and students.
Originally published in The Advertiser on Tuesday 22 June, 2021
