The South Australian Government is cracking down on rental companies that operate in the state’s major cities.
In the lead-up to Christmas, the Government announced the launch of a $5,000 “Christmas Tax” on all car rental businesses in South Australian towns.
The Tax is meant to deter people from renting a car for more than a month, and will be levied from Monday October 15.
According to the Department of Finance, the Tax will be applied at car rental providers, car parks, motels and car wash outlets.
For the first time in South East Asia, the state is offering its citizens the opportunity to file a declaration to the tax for a period of up to 90 days.
It’s expected to raise $5 million.
South Australia has one of the lowest car rental rates in the country, according to research by the Australian Automobile Association.
A spokesperson for the Department for Business, Innovation and Employment (BFIE) said they have been monitoring the impact of the Tax in South Africa, and are prepared to “step up and respond” if necessary.
BFIe said they had already increased staff across their South African operations and are actively reviewing their business model.
“As we look at the future of the South African economy, we are looking at the economic and social impacts of our rental business model, and we will respond appropriately if necessary,” the spokesperson said.
New South Wales is also looking at changes to the rental business.
Under proposed legislation, car rental operators must have a minimum of two rental vehicles in operation, and a minimum number of employees.
But there is no mandatory minimum number to be used in South Carolina, and car rental firms are allowed to hire people with a disability.
Rental businesses are allowed a maximum of two vehicles and two employees per rental company.
There is also no minimum number for rental business to be allowed to employ a single person.
More to come.