South Australian small businesses will receive $650 energy rebates, up to $50,000 in support for flood recovery, and face a new $6.5 million investment into skill and capability development, according to the state’s 2023-2024 budget.
Released on Thursday, the Labor government’s second budget promises some 86,000 small business will receive energy bill support of $650, designed to help local operators cope with the soaring cost of keeping the lights on through the next financial year.
The package will be delivered with co-contributions from the federal government, mirroring Queensland’s pledge to also provide struggling SMEs with bill support.
A new $142.8 million flood relief package covering South Australian communities, households and businesses will assign $50,000 grants to SMEs recovering from major flooding events.
Additionally, $10,000 industry support grants will be distributed to small business owners trying to maintain operations through future flooding.
The budget also promises land tax relief to South Australian businesses with properties that have been destroyed by floodwater, and stamp duty relief when purchasing replacements to flood-destroyed vehicles.
On the other end of the weather spectrum, the budget includes $5.5 million over three years to carry on the farm business resilience program, designed to shield rural enterprises through drought conditions.
Meanwhile, a new $6.5 million investment will go towards the enactment of South Australia’s new small business strategy, delivering on the findings of a lengthy consultation process.
After 21 roundtables, 19 interview days, and an online survey, which yielded more than one thousand responses, the state government intends to detail the precise shape of that strategy in the weeks to come.
Minister for Small and Family Business Andrea Michaels said the strategy comes after “the most comprehensive and intensive engagement program with small and family businesses this state has ever seen”.
For now, budget papers state the investment will foster “skills, capability and capacity of small business owners and support them to create jobs and build the economy”.
A further $5 million per year from 2023-2024 will go towards the state’s Research and Innovation Fund, which includes the operations of the Lot Fourteen innovation hub.
The Australian Retailers Association (ARA) welcomed the budget’s broader cost-of-living relief measures, including boosted concession and carer payments.
However, the organisation called the budget’s overall promises a “welcome – but modest – foundation for struggling businesses.”
The new small business strategy would benefit from greater funding, said ARA CEO Paul Zahra.
“The implementation of a Small Business Strategy is an important measure, but with approximately 143,000 small businesses trading in South Australia we would ideally like to see this $6.5 million package expanded,” he said.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
