Business SA welcomes the State Government’s $650 million Jobs Stimulus package today saying it will help South Australian businesses survive COVID-19.
But, the peak industry body warned rent relief from either the State or Federal Government was also urgently needed.
“We thoroughly commend the Premier and State Government for the $650 million stimulus package, it is desperately needed,” said Business SA CEO, Martin Haese.
“As the state with the largest number of small business owners per capita in the nation, Business SA says that today’s announcement places SA at the forefront in response to COVID-19. With up to $1 billion of support now provided across various measures, these go a long way to support business owners and protect jobs.
“Today’s package includes a $300 million Business and Jobs support fund, $250 million for community, arts and sporting organisations affected, $60m through a 6-month Payroll Tax waiver for SMEs, some land tax support for eligible property owners and a waiver of liquor licence fees for 2020-21 for hotels, restaurants, cafes and clubs forced to close as a result of new social distancing restrictions.
“However, we urge either the State or Federal Governments to provide rental relief for businesses currently locked in negotiations with their landlords.
“Dozens if not hundreds of businesses are on the precipice of collapse.
“Rental relief measures will help put cash in their tills right now, which is the number one thing businesses need to survive this.”
Mr Haese welcomed his inclusion on the Premier’s 14-person Industry Response and Recovery Council, which met for the first time today.
“I commend the Premier for bringing this group together and I informed him today that as a group we need to do whatever it takes to get South Australia through this,” Mr Haese said.
“I also encouraged the Premier to go into bat for South Australia and put pressure on his Federal colleagues to deliver urgent changes to the national stand down provisions in the Fair Work Act 2009.
“Currently, an employer must show there was a stoppage of work or a cause for which the employer cannot reasonably be held responsible such as an enforceable government direction.
“It is difficult to accept that employers cannot stand down an employee due to a severe deterioration of business conditions, which is exactly the situation most businesses are currently facing. We need greater flexibility so that businesses have more options than simply making staff redundant.
“This is a huge concern for businesses right now and we are being inundated with questions from our members wanting clarity around what they can and can’t do. Changing these workplace obligations will save jobs.”
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