SA spruiks wine, taxes to poach business from Victoria

Victorians are being sold the allure of a better life across the border as South Australia fires up an ad campaign aimed at poaching businesses from interstate.

SA Premier Peter Malinauskas spruiked the festival state's more attractive corporate tax regimen and superior lifestyle, leaving his Victorian counterpart Daniel Andrews incensed.

"We know that the state's tax regimen is extremely competitive in comparison to every other state around the country, including Victoria. We want to tell that story," Mr Malinauskas told reporters on Thursday.

The Business is Better in SA campaign, which is already running across billboards and social media in Victoria, flaunts better tax breaks for businesses, including zero payroll tax for wages under $1.5 million. 

It also claims better training, traffic, beaches and wine.

The campaign highlights that South Australians pay more than $2100 less in taxes per year compared with their Victorian counterparts, and follows the Victorian government's imposition of an $8.6 billion levy to pay off its COVID-19 debt.

As property prices soar across the country, Mr Malinauskas was also keen to point out that land was more affordable in his state for businesses and individuals.

"(South Australia has) far less land tax, far less stamp duty, a highly competitive payroll tax regimen,'' he said.

"That's what we want the eastern states to be aware of, so when they choose to expand their businesses or establish a new one, they look to South Australia to do so."

Mr Andrews claimed to be unfazed by the campaign, but used the opportunity to stick the boot in over what he perceives to be an unfair carve-up of GST revenue among the states.

"I'd be more worried about South Australia stealing Victoria's GST, frankly," he said.

"If it's so rosy over there, if it's such a great place, maybe they don't need our $670 million worth of GST that we paid them."

Mr Malinauskas brushed off Mr Andrews' criticism and maintained the pair are on a unity ticket of clawing back their fair share of GST revenue from Western Australia.

He also said SA boasted the fastest-growing economy in the country, with Australian Bureau of Statistics figures for the June quarter showing state final demand grew by 1.3 per cent.

Victorian shadow treasurer Brad Rowswell said he didn't blame SA for trying to lure businesses across the border, but urged them to stick fast.

"Please bear with us for the next three years, it won't always be the Andrews Labor government that's in charge," he said.

The SA government intends to expand the campaign to other states after its initial $160,000 run in Victoria, which ends on September 16. 

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