2018-19 South Australian State Budget Wrap

Treasurer Rob Lucas has revealed the first Liberal state budget since 2001 announcing a number of cost cuts to the public sector and record spending on infrastructure.
From an economic outlook perspective the government has projected a 2.25% growth in Gross State Product (Australian GDP sits at 3%) and a 1% growth in employment.

The key Announcements:

Payroll Tax
Small businesses with annual taxable payrolls below $1.5 million (approx 3000 businesses) will be exempt from payroll tax  from 1 January 2019. Businesses with annual taxable wages between $1.5 million and $1.7 million (approx. 400 businesses) will pay less payroll tax .
Apprenticeships & Traineeships
An additional $200 million over 4 years is to be spent on subsidised training and support services for apprenticeships and traineeships. 50% will be funded by the Commonwealth.
The Job Accelerator Grant Scheme
The Job Accelerator Grant Scheme (ran from 1 July 2016 to 30 June 2018) has not been extended.
5.2 million over 4 years to establish a South Australian Productivity Commission. The role of the commission will be to review infrastructure projects, highlighting those that will provide the greatest benefit to the South Australian economy.

A record 11.4 billion over 4 years will be spent on infrastructure. The big winners include:
- Schools and education and
- Various regional projects
Not so lucky are TAFE students with the announcement that seven TAFE campuses will be shut - four in the Adelaide metropolitan area and three in rural areas.

Land Tax 
The Government has delivered on its election promise to increase the tax-free threshold from the current $369,000 level to $450,000 from 1 July 2020. It has also committed to implementing a new marginal tax rate of 2.9% for properties valued between the existing top threshold (currently $1.2 million) and $5 million.
Government estimates this initiative will benefit more than 50,000 land tax ownerships, including 8,000 South Australians who will no longer have a land tax liability.

Foreign Investor Tax
The Foreign Investor Tax imposed by the previous Government has remained in this Budget at the revised 7% rate for residential transactions.
South Australia – along with New South Wales, Queensland, Victoria and Western Australia – remains a jurisdiction that has chosen to impose surcharges on foreign investment.