The South Australian Government announced a $20 million allocation in the State Budget for Round 2 of the Economic Recovery Fund (ERF) in a move aimed at bolstering small businesses.
This initiative targets investment in energy-efficient equipment, offering financial relief to up to 8,000 eligible small businesses and not-for-profits across the state, the government said in a media release.
These grants, ranging from $2,500 to $50,000, will match business investment into eligible equipment dollar for dollar.
Round 1 has already benefited 17 South Australian companies, helping them to grow and become more competitive.
The emphasis on sustainability is a strategic move, noted Andrea Michaels, Minister for Energy and Environment.
“We are acutely aware of the increased costs of doing business in recent years. Round 2 of the Economic Recovery Fund will make a practical difference in addressing the issue by contributing dollar for dollar to important small business investment decisions while also resulting in ongoing reduced energy and other operating costs,” Michaels explained.
According to the government, the Economic Recovery Fund, launched in 2023 with an initial allocation of $154.2 million, has already proven beneficial to various sectors.
REDARC, a Lonsdale-based defence and space company, received $2 million from the inaugural round.
“This project will position REDARC Defence & Space as a Tier 2 enterprise providing crucial support to the Australian Defence industry,” remarks Anthony Kittel, Managing Director of REDARC.
According to him, it will grow the South Australian space ecosystem and establish the business as a recognised international leader in its field.
The impact of these initiatives extends beyond immediate financial relief.
“Round 2 will see the government partner with small businesses to help them reduce energy costs not just now, but for the long term,” added Treasurer Stephen Mullighan.
He continued, “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.”
With applications for the second round of the Economic Recovery Fund set to open in August 2024, businesses are encouraged to register their interest on the Office for Small and Family Business website at business.sa.gov.au.
