Restaurant & Catering Australia (R&CA) believes measures in the 2017‒18 South Australian Budget will deliver positive outcomes for small businesses in the state’s tourism and hospitality sectors.
The South Australian Government announced small businesses with payrolls between $600,000 and $1 million will receive a permanent reduction in their payroll tax rate to 2.5 percent.
R&CA CEO John Hart welcomed the South Australian Government’s adjusted payroll tax rates, which will ease pressure on small businesses including cafés and restaurants currently faced with soaring labour costs.
“We are pleased the South Australian Government has recognised the difficulties in the current operating environment facing the state’s small businesses,” said Hart.
“For South Australia’s 2,200 cafés and restaurants, the cost of wages and staff on-costs can represent as much as 44 percent of overall business expenditure.
“The reductions in payroll tax rates will provide many of these business owners with some much-needed relief.”
The South Australian Government also announced an expansion of the Job Accelerator Grant Scheme, meaning businesses with payrolls up to $600,000 will be able to receive funding grants up to $9,000 for employing new apprentices and trainees.
“The funding delivered for the Job Accelerator Grant Scheme will benefit small businesses in the hospitality sector as well as the apprentices and trainees themselves who will be able to gain the vital workplace skills and experience they need to succeed in their future careers,” said Hart.
Hart also praised the South Australian Government for its focus on key sectors of employment growth including tourism, food and wine, with $200 million allocated to establish the Future Jobs Fund.
“Without an adequate investment of funds, as we have seen from the South Australian Government, the potential jobs growth in sectors like tourism may never be fully realised,” said Hart.
“The investment in the 2017‒18 South Australian Budget will ensure the state’s tourism, food and wine industry can continue to be one of the major pillars of the state’s economy.”
The R&CA also welcomed the State Budgets of New South Wales, which included a number of measures targeting small business growth; Queensland, which it said would support jobs growth; and Tasmania, which the industry body said would provide significant improvements to the operating environments of tourism and hospitality businesses throughout the state.
Image credit: theaustralian.com.au
