Small businesses have had a financial win after details of the 2018-2019 South Australian State Budget were released.
The SA government has allocated $157.2 million of funding to abolish payroll tax over a four-year period for all small businesses with payrolls of $1.5 million or less.
“Given that over 90 per cent of South Australia’s café, restaurant and catering businesses are small business employing 19 people or less, it is critical the state government provides a favourable set of operating conditions enabling them to thrive,” says Juliana Payne, R&CA CEO.
“By relieving the burden of payroll tax, this will allow hospitality operators to more readily expand their businesses and employ more people without the prospect of being hit with extra taxes.”
Education and jobs also received a significant investment, with the government committing $2.3 million to fund 20,800 new apprenticeships and partnerships.
The hospitality industry’s skill shortage shows no signs of slowing down, and investing in local education is crucial to the future success of the sector.
“Chronic skills shortages across key occupations such as cook, chef and café and restaurant manager are severely hampering the productivity and output of the State’s hospitality sector,” says Payne.
“The State Government’s investment in skills and vocational education and training in today’s Budget is a desperately needed measure to help reverse this worrying trend.”
Image credit: API Magazine