South Australia’s pubs and clubs, the casino and the Adelaide Oval Stadium Management Authority (SMA) are amongst the first organisations to benefit immediately from funding provided under the Marshall Liberal Government’s $650m Jobs Rescue Package.
Designed to help save local jobs and industry in the wake of the coronavirus crisis, each of these businesses have been hit hard by the impacts of the pandemic and the necessary trading, travel and social gathering restrictions imposed to limit its spread – including the cancellation of AFL games and other events.
“We are committed to doing all we can to help secure local jobs and save industry from potential collapse as a result of the biggest economic challenge of our generation,” said Treasurer Rob Lucas.
“Through the emergency $650m Jobs Rescue Package – part of the State Government’s $1 billion economic response to this crisis – we will help ease the cash flow burden on these particular businesses at a time when they need it most.”
Mr Lucas said, in relation to the SMA which runs the Adelaide Oval, the Government has agreed to waive its $3 million payment to the sinking fund* for 2020-21, which had been due in October, as well as provide ex gratia relief of $1 million to cover its annual sublease fee.
The $3m sinking fund payment is not a cost to taxpayers as it is a SMA payment into their own fund which they won’t have to make this year.
The Government will also defer interest payable on the Adelaide Oval Hotel loan for six months (estimated to be worth approximately $530,000), to be capitalised and amortised over the remaining life of the loan.
“Clearly, the SMA is suffering significant losses from the cancellation of AFL games and other revenue-raising operations at the Adelaide Oval and these measures will provide immediate financial relief to help them through this unprecedented time,” said Mr Lucas.
The Government has also deferred collection of gaming machine revenue from the state’s pubs, clubs and hotels – as well as the Adelaide Casino – for 6 months. This is expected to provide as much as $11 million in total temporary tax relief and improved cash flow for businesses in this hard-hit sector.
“Our hotels and hospitality sector is a significant employer in South Australia, and this temporary tax relief will go some way in helping support our pubs, clubs and hotels through this extremely challenging period.”
The Government has also taken decisions to provide assistance to the Adelaide Zoo, Netball SA, start-ups at Lot 14, some energy and resource companies and NGOs. Details will be provided in coming days on some of these decisions.
*Each year, the SMA is required to pay money into the sinking fund, under Section 6 of the Adelaide Oval Redevelopment and Management Act 2011, to ensure funding is readily available for the ongoing maintenance of the Oval.