State and Territory COVID-19 Support Developments

Australian Capital Territory: support extended and expanded

The Federal Treasurer and the ACT Chief Minister have issued a joint media release announcing expanded and additional support for businesses affected by COVID-19 lockdowns. The support takes the form of two tranches.

COVID-19 Business Support Grants

The two governments had already agreed to jointly fund ACT “COVID-19 Business Support Grants”, which take the form of one-off grants of up to $20,000 for employing businesses and $7,500 for non-employing businesses where those businesses’ turnover has declined by 30% or more as a result of the COVID-19 health restrictions.

There will be an additional ACT “COVID-19 Business Grant Extension” payment of $10,000 for all employing businesses and $3,750 for non-employing businesses, to be paid to all businesses who were eligible for the COVID-19 Business Support Grant in industries that are “still significantly impacted by the health restrictions”.

Additional one-off top-up payments will also be made for larger businesses at the following rates:

• $10,000 for employing businesses with a turnover greater than $2 million and less than $5 million;
• $20,000 for employing businesses with a turnover greater than $5 million and less than $10 million; and
• $30,000 for employing businesses with a turnover greater than $10 million.

Both governments have agreed to discuss any additional extensions under the COVID-19 Business Support Grant program on 1 October.

COVID-19 Tourism, Accommodation Provider, Arts and Events and Hospitality Grants

Further one-off grants to businesses in the tourism, accommodation provider, arts and events and hospitality industries will be provided at the following rates:

• $1,000 for non-employing businesses;
• $3,000 for employing businesses with turnover less than $2 million;
• $10,000 for employing businesses with turnover greater than $2 million and less than $5 million; and
• $20,000 for employing businesses with turnover greater than $5 million.

The eligibility criteria will match the eligibility criteria for the COVID-19 Business Support Grant.

Details are still being finalised. These payments will not be administered until October, pending an assessment of the COVID-19 Business Support Grants. Approximately 2,000 businesses could be eligible for this additional one-off grant.

Businesses can find further information and apply for the grants on the ACT Government’s website.

Queensland: support for New South Wales border businesses

The Federal Treasurer and the Queensland Premier have issued a joint media release outlining details of business support packages aimed at businesses on the NSW and Queensland border affected by the COVID-19 economic downturn.

The $52.8 million emergency support package is stated to help Queensland businesses suffering due to the border restrictions between the two states and to provide targeted support to tourism and hospitality businesses facing significant hardship.

The joint Federal–State package includes:

• $40 million for the “Tourism and Hospitality Sector Hardship Program” to deliver one-off grants of $15,000, $25,000 and $50,000 for small, medium and large employing businesses across Queensland that have experienced a reduction in turnover of at least 70% for at least seven consecutive days between 1 July and 30 September;
• $6.3 million to extend the existing “COVID-19 Business Support Grants” program; and
• $6.5 million to provide one-off “Hardship Scheme” grants of $5,000 for employing businesses and $1,000 for non-employing sole traders to recipients of the “COVID-19 Business Support Grants” in the border zone in the event of an extended border closure.

The state-funded elements include:

• up to $1 million to match City of the Gold Coast Council and Destination Gold Coast’s “Play Money” campaign, encouraging Gold Coasters to patronise border businesses;
• $50,000 support for marketing campaigns in Coolangatta; and
• $700,000 for additional mental health support for business owners and their families in the border zone.

These special hardship grants will be available from mid-October 2021. Further details are available on the Queensland Business webpage.

South Australia: support for tourism and hospitality industries; hardship grants

The Federal Treasurer and the SA Premier have issued a joint media release outlining details of business support packages aimed at SA businesses affected by the COVID-19 economic downturn.

As seems to be the case with these announcements, this package involves a tinkering of already announced measures mixed in with some new measures.

The programs will deliver support to an estimated 3,500 local businesses and will be administered by the SA state government. The SA Treasury website has a useful tabular summary of grants, but also sets out other business support measures (eg land tax, payroll tax) which have been implemented during the pandemic.

The “COVID-19 Tourism and Hospitality Support Grant” is aimed at businesses in eligible tourism and hospitality sectors (and other sectors such as performing arts, creative artists, taxis and car rental) that have already received the “COVID-19 Additional Business Support Grant”, as follows:

• a grant of $3,000 for employing businesses with turnover less than $2 million;
• a grant of $10,000 for employing businesses with turnover of greater than $2 million;
• a grant of $20,000 for employing businesses with turnover of greater than $5 million; and
• a grant of $1,000 for non-employing businesses.

There is also a new “COVID-19 Business Hardship Grant” of $6,000 for employing businesses with annual payrolls below $10 million and $2,000 for non-employing businesses that have experienced a minimum 50% reduction in turnover over the eligible period and haven’t been eligible for previous business grant support since July 2021.

In addition, the SA government is increasing its state-funded “Major Events Support Grant”, to provide grants of up to $100,000 for large cancelled or postponed events where attendee numbers at the event were expected to be greater than 10,000, in recognition of the significant costs incurred with large events. Eligible events that have already applied for the $25,000 grant will now receive a top-up of up to a further $75,000, bringing total assistance to $100,000.

Tasmania: support increased

The Federal Treasurer and the Premier of Tasmania have issued a joint media release outlining details of an expanded business support package aimed at operators impacted by border closures.

The existing Business Support Package will be boosted from $20 million to $50 million, with grants of up to $50,000 to be available to eligible businesses across two funding rounds.

In addition, the Tasmanian government will provide support including:

• payroll tax relief for tourism and hospitality industry businesses where there has been a 30% reduction in turnover in the September 2021 quarter;
• waiving vehicle registration and passenger transport accreditation fees for vehicles including taxis, luxury hire cars, tour operator buses and rental car operators for renewal notices received between 1 July and 31 December 2021; and
• waiving the license fees payable to Parks & Wildlife, which removes a significant burden for tourism businesses operating within Tasmania’s parks.

Full details about the program can be accessed on the Business Tasmania website, and eligible businesses can apply immediately.

Victoria: Commercial Tenancy Relief Scheme

The Victorian Premier has announced that new regulations have been made to provide relief for commercial tenants struggling with rent payments.

The Commercial Tenancy Relief Scheme was implemented via the Commercial Tenancy Relief Scheme Act 2021, which received assent on 10 August 2021. The Act came into operation on 10 August 2021 but will sunset on 30 April 2022 (with the Regulations remaining in force until 30 October 2022).

The scheme is designed to assist small and medium-sized businesses with an annual turnover of less than $50 million that have experienced a loss in turnover of more than 30% during the pandemic. Eligibility for rent relief has been broadened, with tenants now able to choose three consecutive months between 1 April and 30 September 2021 to compare to their turnover in the same three months in 2019.

Businesses will get financial relief in the form of a proportionate reduction in rent. For example, a business with a turnover of 40% of pre-pandemic levels can only be charged 40% of its rent. Of the balance, at least half must be waived, with the remainder to be deferred.

As part of the scheme, the Victorian Small Business Commission will provide information so that landlords and tenants can negotiate an agreement, and free mediation for those who need assistance.

New businesses are also protected under the scheme, with any business which has opened since April 2019 eligible for assistance.

The scheme will apply retrospectively from 28 July 2021 and will run until 15 January 2022.

To help landlords that are doing the right thing by eligible tenants, the Victorian government will provide land tax relief of up to 25%, in addition to any previous relief, with the support worth up to $100 million.

Small landlords who can demonstrate acute hardship will be eligible to apply for payments as part of a $20 million hardship fund.

More details can be found on the VSBC website.

Western Australia: assistance grants for tourism businesses

The Federal Treasurer and the WA Premier (among others) have issued a joint press release announcing that WA tourism businesses impacted by COVID-19 will soon be able to apply for funding support under a new joint Commonwealth–state program.

It is anticipated about 3,500 businesses will be eligible for grants of up to $10,000 under the program – including tourism operators, accommodation providers and travel agents.

To be eligible for support, applicants must demonstrate at least a 30% reduction in turnover (by comparing the period 15 May to 25 June with 10 July to 20 August). The following funding amounts will be made available to eligible businesses:

• $2,000 grant for all sole traders and for employing businesses with an annual turnover between $50,000 and $100,000;
• $5,000 grant for employing businesses with an annual turnover between $100,000 and $1 million; and
• $10,000 grant for employing businesses with an annual turnover between $1 million and $10 million.

In order to be eligible, a business must be:

• registered with Tourism WA as a previous grant recipient or as part of the agency’s marketing campaigns in 2020 or 2021;
• a member of, or accredited through, a relevant tourism organisation; or
• a travel agent that has been offering domestic product to travellers.

More information should be available on the WA COVID-19 coronavirus: support for business website.

Important: Clients should not act solely on the basis of the material contained here. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We, therefore, recommend that our formal advice be sought before acting in any of the areas. 

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