3 Ways the Recent Tax Cuts in South Australia Can Help Landowners
The overall tax structure in Australia occurs across two main levels—federal and state. Federal policies apply to all taxpaying entities (people and businesses), while state tax policies vary from one region of the country to another. State policies also have a more direct impact on local populations than federal policies—primarily because state taxes are used in the delivery of local services such as healthcare and education.
For landowners in South Australia, the recent tax cuts announced by the state government will come as great news. These tax cuts, which apply to ESL for property owners and payroll taxes for small businesses, will reduce how much landowners need to pay from mid-2020 moving forward.
With a lower property tax burden in South Australia, how can landowners benefit?
1. More money in their pockets
The obvious benefit of an ESL reduction is savings for landowners. This reduced tax burden allows owners of various properties to keep more money in their pockets for many different purposes.
From catering to family expenses to investing in additional streams of income, landowners in South Australia will have a great opportunity to restructure their budgets moving forward.
2. Better margins on investments
The recently announced tax cuts for property owners are also aimed at helping them invest more. In fact, these ESL cuts will result in $96 million of tax burden savings over two years.
If you're a landowner in South Australia, you'll be able to use the money you save in many different ways. For example, you can invest in renovations to boost the value of your home. You may even choose to give your home a facelift for rental purposes. Either way, the tax cuts will give you an opportunity to enjoy better margins down the road.
3. Small Business owners will also benefit
The tax cuts announced will also directly benefit small business owners. This new proposal is designed to reduce the amount of payroll tax that each business owner will need to pay, thus resulting in better operational margins. Payroll taxes can easily accumulate for small businesses, especially as they continue to hire more workers. Therefore, these cuts are expected to fuel business growth and boost employment rates in South Australia.
For business owners who also own land, the new tax policy is a win-win situation. You'll be able to save on ESL costs as well as your payroll tax burden—meaning more money in your pocket over the years.
For more information, contact local tax accountants.
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