Attending the State Budget Lockup, the South Australian Business Chamber was keen to hear of new initiatives that would provide much-needed relief for businesses as costs increase and the economy slows.
There was little to get enthused about. As anticipated, the 2023/2024 budget allocated substantial funding to areas such as health, housing, and child protection and primarily focused on addressing cost of living concerns.
As businesses owners know, businesses face these cost pressures and more, including the impact of significant wage growth just as the impact of a year of interest rate rises quells consumer demand.
But where households receive some respite in this budget, businesses do not.
We were hoping for relief in the form of a lift in the payroll tax threshold, considering the additional burden it poses on the many businesses now liable to pay this tax for the first time as their wages bill jumps into a higher bracket through no fault of their own.
Unfortunately, with the payroll tax threshold remaining unchanged, business owners are now forced to bear additional costs under a model that discourages both growth and job creation.
This boost in payroll tax — along with GST and gambling revenue — will see the budget return to surplus in next year and remain so in the forward estimates. Once again, business is called upon to do the heavy lifting.
Following the recent horror budget in Victoria we should probably be grateful that there were no new taxes introduced to impact business. But in remaining silent on payroll tax, the Malinauskas Government missed a golden opportunity for South Australia to further enhance its reputation as a great place to do business.
Every year the South Australian Business Chamber compiles a comprehensive guide for business on the State Budget. This year we have included points of interest for businesses, and where we think businesses have missed out.
Download the South Australian Business Chamber’s 2023/2024 State Budget Summary
