State Governments’ COVID-19 support: a summary

Unlike the first wave of COVID-19 where the Federal government provided most of the financial help for businesses, with the new Delta variant and its associated lockdowns, the bulk of business support is now being provided through individual States and Territories. This has led to a complex and sometimes confusing labyrinth to navigate, especially when businesses span different States or Territories. Below is a brief outline of some of the support available to businesses in various States and Territories.

With the circulation of the Delta variant, many parts of Australia are now under lockdown putting increasing strain on small and large businesses alike. Unlike the previous nationalised COVID-19 support provided at the beginning of last year, this time, the financial support for businesses are fragmented and entirely depends on the State or Territory in which they operate.

Victoria

Businesses that have previously received funding under the Business Costs Assistance Program Round Two or the Business Costs Assistance Program Round Two July Extension will be eligible to receive an additional $5,600 ($2,800 per week) to cover the costs in relation to the restrictions. Only businesses that have previously applied and were eligible for the assistance program will receive the new additional payment.

Small to medium businesses that have experienced at least a 70% reduction in turnover as a result of the COVID-19 restrictions and are ineligible for other Victorian government business grants will be able to apply to receive grants of $14,000.

Both employing and non-employing businesses will be eligible for the program as long as they are located in Victoria and have an annual Victorian payroll of up to $10m in 2019-20 on an ungrouped basis.

There are also other specific programs for licensed hospitality venues, live performance event organisers, alpine businesses, manufacturing, agriculture, and regional and rural investments. In addition, commercial tenants will be offered rental relief and be protected from evictions. While landlords will be provided land tax relief of up to 25% and in cases of acute hardship, may be eligible for payments as a part of a $20m hardship fund.

Queensland

Queensland businesses that have experienced a decline in turnover of 30% or more will be able to receive:

• $1,000 one-off grant to non-employing sole traders;

• payroll-based tiered support for all other businesses: SMEs with payrolls of less than $1.3m may be eligible to receive a one-off grant of $5,000. Medium businesses with a payroll between $1.3m and $10m may be able to receive a one-off grant of $10,000. Large sized tourism and hospitality focused businesses with a payroll of greater than $10m may be able to receive a one-off grant of $25,000.

South Australia

The business package for South Australia include cash grants of $3,000 for employing businesses and $1,000 for non-employing businesses (ie sole traders) that have experienced a decline in turnover of 30% or more over a 2-week period as a result of COVID-19 restrictions introduced from 28 July 2021. Eligible businesses in the CBD may also be able to receive an additional grant of $1,000. Organiser of major events that were either cancelled, or suffered a significant financial loss will be able to get a grant of up to $25,000.

ACT

Similar to SA, businesses in the ACT will receive cash grants of $3,000 for employing businesses and $1,000 for non-employing businesses, however, the 30% reduction in turnover will be measured from 13 August to 20 August 2021. The ACT government will also fund a small business hardship scheme where eligible ACT businesses can apply for credits (eg payroll tax, utilities etc) of up to $10,000 per ABN.

Tasmania

Tasmania has announced a specific package mainly targeted at businesses operating in tourism, hospitality, arts and events, seafood, and transport sectors. Between $2,000 and $10,000 will be available to eligible businesses that have suffered a 30% decline in their turnover.

NSW

In addition to the previously announced business support payments, rental relief for eligible tenants impacted by COVID-19 will also be implemented along with a hardship fund of $40m for small commercial or retail landlords to provide monthly grants of up to $3,000.

Does your business need help?

If you operate a business in multiple states or would just like to find out whether your small business qualify for any state support during this difficult time, our team has the expertise to help you navigate all the different rules.