Covid support grants for impacted SA businesses
The South Australian Government has introduced a $40 million financial package for businesses affected by the latest Covid-19 restrictions, with a focus on the hard hit tourism, hospitality and fitness sectors.
The support package for businesses impacted by the health restrictions put in place from 27 December 2021 includes:
- Grants of up to $22,000 for eligible tourism and hospitality businesses and gyms, which includes automatic payments of up to $11,000 for businesses that previously received the Additional Covid Business Support grant.
- Businesses can also get another grant of up to $11,000 by applying, if their turnover dropped by 30 percent in the two weeks starting December 27.
- Eligible businesses other than hospitality, tourism and gyms can apply for an $8000 grant while affected major events that were cancelled or postponed can receive grants of up to $100,000.
- Payroll tax deferral for tourism, hospitality and gyms affected by the trading restrictions upon application to RevenueSA and some liquor licence holders can have the remaining half of fees waived.
This is the seventh government support package since the start of the pandemic.
Contact your Hood Sweeney Accounting & Business Advisory relationship manager on 1300 764 200 for assistance with any of the following support measures.
Tourism, Hospitality and Gym Grant
The South Australian Government has introduced a Tourism, Hospitality and Gym Grant to support businesses impacted by the SA health restrictions in place from 27 December 2021.
Businesses with national payrolls of less than $10 million in eligible tourism/hospitality sectors, gyms and other businesses required to operate under the 1 person per 7 square metre density restriction that have already received the COVID-19 Additional Business Support Grant will receive an automatic payment of:
- $3,000 for employing businesses with turnover less than $2 million in 2019-20 or 2020-21
- $10,000 for employing businesses with turnover of greater than $2 million in 2019-20 or 2020-21 (tourism and hospitality sectors only)
- $1,000 for non-employing businesses
- Additional grant for businesses operating in CBD (employing and non-employing): $1,000
The above mentioned automatic payments will be made in the week beginning 4 January 2022.
Businesses that fall outside the hospitality and tourism sector (eg. gyms) with a turnover exceeding $2 million will have the opportunity to apply for equivalent relief via a separate application process for the Tourism, Hospitality and Gym Grant turnover based payment.
Business hardship grant
Grants of $6,000 for employing businesses and $2,000 for non-employing businesses will be available for businesses that have experienced a decline in turnover of 50 percent or more as a result of the health trading restrictions introduced from 27 December 2021.
A further grant of $2,000 will be available for eligible businesses (both employing and non-employing) with a commercial premise in the Adelaide CBD. This recognises the increased number of employees working from home and the impact this has on businesses in the Adelaide CBD.
To be eligible for a grant, businesses must meet the criteria listed below as at the start of the restriction period of 12:01am Monday 27 December 2021:
- Be located/operating within South Australia.
- Have a valid and active ABN (Australian Business Number) and be registered for GST.
- Have an Australia-wide grouped payroll of less than $10 million in the 2019-20 or 2020-21 financial year.
- Experienced at least a 50 percent reduction in turnover due to the restricted trading conditions over the two weeks from 27 December 2021 (the commencement date of the trading restriction) to 9 January 2022 compared to:
- the comparable 2 weeks in 2019-20 for businesses actively trading in 2019-20; or
- the comparable 2 weeks in 2020-21 for businesses not actively trading in 2019-20.
Businesses that have received a COVID Business Support Grant for the tourism, hospitality sector and gyms are not eligible for the COVID-19 Business Hardship Grant.
To be deemed an employing business, the business must employ people in South Australia.
Where multiple non-employing businesses meeting the eligibility criteria are controlled by one individual, company, partnership, or trustee, funding will be restricted to one grant across all businesses.
Businesses must be able to provide evidence of the reduction in turnover if requested, and retain records for two years from the date the grant was approved. Applications may be subject to audit.
Applications for the grant will be open shortly through the Department of Treasury and Finance application portal. Applications close 31 March 2022.
Major Events Support Grant
A Major Events Support Grant of up to $25,000 is available for the operators of major one-off events impacted by the health related trading restrictions from 27 December 2021.
An increased grant amount of up to $100,000 is available for cancelled or postponed events with greater than 10,000 attendees.
Applications close 31 March 2022.
Payroll tax relief
In recognition of the health related trading restrictions introduced from 27 December 2021, the government has announced further payroll tax relief for businesses.
Tourism, hospitality, gyms and other eligible businesses impacted by the trading restrictions in place from 27 December 2021 may apply to RevenueSA for a deferral of payroll tax due over the period from January 2022 to March 2022, with these deferred payments due from April 2022.
Further information is available here.