South Australian businesses are set to benefit from over $50 million worth of land tax and rent relief measures announced by the state government today.
Commercial and residential landlords suffering from Covid-19 restrictions will be offered a 25 per cent reduction on their 2019-2020 land tax liability on affected properties.
The only catch is that landlords taking advantage of the measure will be required to pass on the full benefit to their tenants impacted by Covid-19.
"This will be a powerful shot in the arm for local businesses and residential tenants who have been suffering a significant downturn in trade and income as a result of COVID-19 and the necessary restrictions imposed to help limit its spread," says SA Treasurer Rob Lucas (picutured).
"By helping landlords, we help their tenants and, in turn, ensure our economy is best placed to bounce back more rapidly from this once-in-a-century crisis.
"So, by saving hardworking South Australians rent we can provide them greater certainty and help ease their cash flow burden at a time when they need it most, ensuring more local businesses can stay afloat during this pandemic."
The scheme will apply to non-residential tenants with an annual turnover of less than $50 million that have experienced a 30 per cent or more reduction in income as a result of the Covid-19 pandemic.
In conjunction with the land tax relief measures are further measures to assist business tenants with paying rent.
State Government agencies will provide full rent relief for tenants of commercial, retail, industrial and other non-residential sites that have been forced to close or are significantly impacted as a result of COVID-19.
The rent relief will apply to impacted tenants from the date they were forced to close their business or were significantly impacted to 30 June 2020.
"Providing rent relief to tenants renting commercial, retail and industrial premises is another part of our strong plan to tackle the impacts of COVID-19 and keep South Australians in work," says Minster for Transport, Infrastructure and Local Government Stephan Knoll.
"This is estimated to save businesses around $4.5 million and is part of our $1 billion economic stimulus package to support local businesses and keep as many people in a job as possible.
"For some businesses this means they could be saving tens of thousands of dollars which they can use to help pay the bills, employ staff and help keep their doors open."
The relief measures come as over 19,000 employers have registered for the $10,000 cash grants from the state.
Updated at 4:55pm AEST on 24 April 2020.
Get our daily business news
Sign up to our free email news updates.