Where’s the tax relief?
The good news for South Australian businesses is that the 2025/26 State Budget did not introduce:
- Any new taxes, levies or duties, or
- Any changes to existing taxes, levies or duties administered by RevenueSA.
The Budget did include a few targeted measures aimed at supporting the economy – including a handful of ‘carrots’ for small and start-up businesses.
The bad news? Not only was there no tax relief, but with the State’s projected debt expected to reach $50 billion by 2028/29, any hope of tax cuts in the near term appears slim.
From a business perspective, the lack of meaningful reform is frustrating. Payroll tax continues to be one of the most commonly raised pain points among South Australian employers – and it remains untouched. For many, this feels like a missed opportunity to offer real relief and support broader economic confidence.
What support is available?
While the Budget doesn’t provide broad relief, it does introduce several targeted initiatives worth noting:
South Australian Early-Stage Venture Capital Fund
The government will contribute $50 million to a new fund to support SA companies seeking equity capital for commercialisation and expansion. Additional contributions will be sought from private investors.
This initiative has potential, particularly if the fund is well-managed and actively engaged with local founders. But it’s important to remember that equity funding isn’t a universal solution – many businesses would prefer more practical forms of support.
Powering Business Grants
$20 million has been set aside to help eligible SMEs and not-for-profits invest in energy-efficient equipment or improvements. Grants will range from $2,500 to $75,000. Applications open in July 2025.
Given the continued pressure of rising operating costs, especially energy, this program may be well-received – but the devil will be in the detail. Clarity and ease of access will be key.
Trade and Investment Support
$5 million over two years will support exporters and industries navigating global trade challenges. This includes market intelligence, business missions, importer visits, and capability development.
While welcome, this is a relatively modest investment considering the scale of the challenge for local exporters. More will likely be needed to help businesses diversify meaningfully into new markets.
Small Business Strategy Support
$3.2 million over four years will fund a profitability and growth program for small and family businesses. It also includes a feasibility study into a business-to-government portal aimed at reducing red tape.
This is a step in the right direction, but small business owners will be hoping that the portal moves beyond feasibility and into action – quickly.
Growth Accelerator Program
Delivered by the SA Business Chamber, this program will offer expert advice and facilitated workshops for high-growth SMEs to improve practices and build networks.
Support for drought-affected regions
The State Government has committed $55.4 million over five years to support drought-affected communities. The table below outlines how these funds will be allocated:
| Measure | Funding |
| Future drought preparedness and resilience programs | $17.3 million |
| Grants to primary producers (On-Farm Drought Infrastructure Rebate scheme) | $13 million |
| Subsidy for electronic ID tags for sheep and goats | $4.5 million |
| Contribution to freight costs for charitable fodder delivery | $4 million |
| Pest management on rural properties | $3.1 million |
| Mental health support for affected individuals and communities | $2.5 million |
| Upgrades to standpipes for potable water access | $2.5 million |
| Active club grants for regional sport/recreation facility upgrades | $2 million |
| Relief grants for rural businesses to cover essentials | $2 million |
| Business support and counselling for drought-affected SMEs | $1.5 million |
| Additional support to the Rural Financial Counselling Service | $1 million |
| Stock water availability from Bundaleer and Beetaloo Reservoirs | $500,000 |
| New regional events through the Regional Event Fund | $400,000 |
| Connecting Communities Events Grants | $250,000 |
| Support for drought-affected students to attend camps/excursions | $250,000 |
Eligible primary producers will also receive a 12-month rebate on the Emergency Services Levy and registration fees for up to three commercial vehicles. To qualify, producers must be in receipt of the Commonwealth Farm Household Allowance.
This is a significant package, and it’s clear that government recognises the ongoing pressures on regional communities. The inclusion of mental health support, pest management, and practical infrastructure grants is particularly welcome.
This Budget may not deliver broad-based tax reform, but it signals clear investment in specific areas of the economy. For business owners – especially in the small and mid-sized space – the message is clear: while major reform is off the table, there are still levers to pull if you’re paying attention.
