South Australia’s peak business body has made a last-ditch plea to the Federal Treasurer to dump Fringe Benefits TAX (FBT) on meals and entertainment expenses in Tuesday’s Federal Budget.
Business SA has been fighting for the tax exemption since April, which it says is the quickest and fastest way to save South Australian jobs.
“Nothing will drive demand in our hospitality sector more and get more people into South Australian hospitality venues faster than an FBT exemption on meal and entertainment expenses,” said Business SA CEO, Martin Haese.
“This is the shot in the arm that can save South Australian jobs.”
Mr Haese said 61,000 South Australians were employed in the hospitality industry, with recent figures from the Australian Bureau of Statistics revealing the sector has been decimated by the pandemic with turnover down 12.8 per cent since February and job losses nosediving 15.5 per cent – the largest slump of any industry.
“Business SA estimates that approximately $14 million in FBT revenues associated with meal and entertainment expenses is collected in South Australia each year,” said Mr Haese.
“This is a relatively small price for the Federal Government to pay to protect more of the 61,000 jobs of South Australians employed in the hospitality industry.”
Since the COVID-19 pandemic hit in March, Business SA has repeatedly called for the FBT exemption writing several letters to Federal Treasurer, Josh Frydenberg, on behalf of its members and the wider South Australian business community.
Mr Haese said he hoped these attempts would not be in vain and the business community would be celebrating a FBT exemption win come Tuesday night.
“An FBT exemption on meals and entertainment expenses is at the top of Business SA’s Federal Budget Wish List as we know it will have an immediate and positive benefit for thousands of hard working South Australian business owners,” he said.
“This will not only help our hospitality business, as the supply chains and other businesses serving our restaurants, cafes, bars, hotels and function centres all set to benefit too.”
Owner of Adelaide Italian restaurants, Sicily Pizzeria and Italy Café Ristorante e Bar, Cono Gorgone, said he was praying for an FBT exemption.
“We’ve had to reduce our staff by a quarter and we’ve lost 30-40 per cent in walk-in trade with less people in the City through restrictions and working from home, it’s been so disappointing for our business,” he said.
“In its heyday when FBT wasn’t about you could really tell the difference. There were more people having business lunches, people were spending more and there was more movement in the City, especially at lunch time. We need something right now that is going to get people back into the hospitality venues and help with hospitality jobs.”
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