The Malinauskas Government will deliver financial relief for small businesses through a $20 million State Budget initiative aimed at driving investment in energy efficient equipment.
Round 2 of the Economic Recovery Fund (ERF) will support up to 8,000 eligible small businesses and not-for-profits to invest in more energy efficient equipment or make improvements that optimise energy usage and costs.
The grants, ranging from $2,500 up to $50,000, will match business investment into eligible equipment dollar for dollar.
A focus on sustainability will result in a win-win for small businesses, aiding in the transition toward a net-zero global market, while also having an immediate impact in reducing energy usage and therefore cost.
The State Government launched the $154.2 million ERF in 2023, with manufacturing and tourism businesses benefitting to the tune of $26.3 million from its inaugural round.
Among them, Lonsdale-based defence and space company REDARC, which received $2 million towards Stage 1 of establishing a Defence and Space Centre of Excellence.
The project will result in 60 new full-time jobs, and the upskilling of a further 23 existing employees.
Stage 1 is expected to help grow REDARC's exports to $24.3 million, an increase of 145 per cent.
Applications for the second round of the ERF are expected to open in August 2024, with businesses able to register their interest on the Office for Small and Family Business website at business.sa.gov.au.
As put by Stephen Mullighan
Round 1 has already benefited 17 South Australian companies, helping them to grow and become more competitive.
Round 2 will see the government partner with small businesses, to help them reduce energy costs not just now, but for the long term.
South Australia is the lowest taxing jurisdiction on the mainland and we're committed to ensuring the best possible conditions for current and future small business owners.
As put by Andrea Michaels
Small businesses make up 98% of all businesses in South Australia.
We are acutely aware of the increased costs of doing business in recent years and Round 2 of the Economic Recovery Fund will make a practical difference in addressing the issue in both contributing dollar for dollar to important small business investment decisions but also resulting in ongoing reduced energy and other operating costs.
As put by REDARC Managing Director Anthony Kittel
This project will position REDARC Defence & Space as a Tier 2 enterprise providing crucial support to the Australian Defence industry, growing the South Australian space ecosystem, and establish the business as a recognised international leader in its field.
