On 13 August 2021, the Queensland and Federal Governments announced an expansion to the COVID-19 Business Support Grant. We previously covered the announcement of the initial $5,000 grant in our blog here. Applications for the initial $5,000 grant opened at 12 pm on Monday, 16 August 2021.
Under the expanded package, eligible businesses can receive an additional:
- $5,000 one-off top-up grant, available to small businesses with payroll of less than $1.3 million (bringing the total grant available to $10,000)
- $10,000 one-off top-up grant to medium sized businesses with payroll of greater than $1.3 million and up to $10 million (bringing the total grant available to $15,000)
- $25,000 one-off top-up grant to large sized tourism and hospitality businesses with payroll of greater than $10 million (bringing the total grant to $30,000).
- a $1,000 one-off grant for certain eligible non-employing sole traders across Queensland.
Information provided in the application for the initial $5,000 grant may be used to assess eligibility for the additional support listed above. Details of how these additional payments will be made are currently being finalised.
Initial $5,000 grant
Previously, the Queensland Government announced financial support for businesses impacted by the lockdown order which commenced at 4pm on Saturday 31 July 2021 for 11 local government areas (LGAs) around Brisbane and this has now been extended to the Cairns and Yarrabah LGAs.
Eligible businesses can receive $5,000 which may be used for business expenses and the grant will be paid within two weeks of the business being notified of approval.
Business Queensland's website has indicated that all eligible businesses who apply for a grant during the three-month application period will receive funding.
To be eligible, a business or not-for-profit organisation must:
- employ staff (employees must be on the entity's payroll and does not include any business owners)
- have an Australian Business Number (ABN) continuously held from 30 June 2021 and be registered for GST
- have Queensland headquarters (i.e. the principal place of business is located in Queensland) and have been trading in Queensland on 31 July 2021
- not be insolvent or have owners or directors that are insolvent or an undischarged bankrupt
- have an annual payroll of not more than $10 million (except for large businesses and not for profit organisations operating in an identified tourism and hospitality sector) during any of the 2018-19, 2019-20 or 2020-21 financial years
- have an annual turnover of over $75,000 during any of the
2018-19, 2019-20 or 2020-21 financial years
- Note: Businesses that have recently started can provide financial records to show they will reasonably meet this turnover requirement in the 2021-22 financial year
- demonstrate the business or not-for-profit organisation was
directly or indirectly impacted by a lockdown event demonstrate or
declare a reduction in turnover of 30% or more during a nominated
- this must include at least 1 full day of a lockdown event when comparing against turnover achieved during the same 7-day period in July or August 2019; or
- if the 2019 period does not indicate a typical weekly turnover (e.g. for a recently started small business or business that has experienced structural changes), include another comparable period (e.g. the same period in July/August 2020).
Depending on whether a business was directly or indirectly impacted by the lockdown events, you may have different evidentiary requirements.
Directly impacted businesses are those which were not able to operate as a result of a lockdown event. These businesses can self-declare the required 30% or more reduction in turnover in their application form. Note, the Queensland Government may audit the recipient at a later date.
Indirectly impacted businesses are those that were able to operate for a limited purpose during the lock down events, or whose activities are not specified in the health directions for the lock down events but are impacted by lock down events or are located outside of the lock down areas. These businesses must provide one of the following to show a reduction in turnover of 30% or more:
- sales turnover information from business records for the relevant periods; or
- a letter issued by a member of CPA Australia, CAANZ, IPA, a registered tax agent or registered BAS agent.
Your Moore Australia advisor will be able to help assess whether your business meets the eligibility requirements and provide the necessary letter as evidence in your application for the grant (if applicable).
In addition to the above, supporting evidence will be required to demonstrate the following at the time of application:
- that the business employs staff (in addition to the business owners and be employed on the businesses payroll)
- that it has an annual payroll up to $10 million (except for large tourism and hospitality businesses in the identified tourism and hospitality sector)
- that the business has annual turnover of over $75,000
- the businesses trading location.
Lockdown events and the impacted LGAs include:
- South East Queensland lockdown, from 4pm on 31 July to 4pm on 8 August 2021.
The 11 LGAs subject to lockdown restrictions were Brisbane City Council, Gold Coast City Council, Ipswich City Council, Lockyer Valley Regional Council, Logan City Council, Moreton Bay Regional Council, Noosa Shire Council, Redland City Council, Scenic Rim Regional Council, Somerset Regional Council and Sunshine Coast Regional Council.
- Cairns and Yarrabah lockdown, from 4pm 8 August until 4pm 11 August 2021.
The 2 LGAs impacted were Cairns Regional Council and Yarrabah Aboriginal Shire Council.
- Any other public health direction which restricts the reasons for which people can leave their homes and which takes effect in August 2021.
Tourism and Hospitality
Large tourism and hospitality businesses and not-for-profit organisations must ensure they are undertaking business activities in any of the identified tourism and hospitality Australian and New Zealand Standard Industrial Classification (ANZSIC) code industry areas and meet all of the other eligibility criteria listed above (note, these businesses can have an annual payroll greater than $10 million). Refer to the ANZSIC codes here.
The material contained in this publication is in the nature of general comment and information only and is not advice. The material should not be relied upon. Please contact your local Moore Australia office to discuss your specific circumstances or case. Moore Australia, any Australian Member, any related entity of those persons, or any of their officers employees or representatives, will not be liable for any loss or damage arising out of or in connection with the material contained in this publication.