Additional support and grants for SA business explained

On 29 January 2022, the South Australian government has announced further financial supports and stimulus packages for businesses affected by COVID-19 restrictions.

It could be confusing to learn whether your business will receive the payments automatically, or you need to apply for the grants. This blog will help explain what you need to know about the available cash grants and eligibilities.

General Requirements for South Australian Business Support Grants

To be eligible for COVID-19 Business Support Grants, businesses must meet the following criteria:

  • Registered for GST
  • Located/operating within South Australia
  • Has a valid and active ABN (Australian Business Number)
  • Has an Australia-wide grouped payroll of less than $10 million in the 2019-20 or 2020-21 financial year.

TOURISM, HOSPITALITY & GYM GRANT PROGRAM

On 31 December 2021, the South Australian Government introduced a Tourism, Hospitality and Gym Grant to support businesses impacted by the health restrictions in place from 27 December 2021 in South Australia.

Grant amounts:

  • $3,000 for employing businesses with turnover less than $2 million in 2019-20 or 2020-21
  • $10,000 for employing businesses with turnover above $2 million in 2019-20 or 2020-21 (tourism and hospitality sectors only)
  • $1,000 for non-employing businesses
  • Additional grant of $1,000 for businesses operating in CBD (employing and non-employing)

1. Automatic payment (One-off) December 2021

The Tourism, Hospitality and Gym Grant – automatic payments were made in the week beginning 4 January 2022 to the eligible businesses:

  • National payrolls of less than $10 million
  • Were required to operate under the density restriction of 1 person per 7 square metres
  • Already received the COVID-19 Additional Business Support Grant in August / September 2021

Businesses that fall outside the hospitality and tourism sector (e.g. gyms) with a turnover exceeding $2 million have the opportunity to apply for equivalent relief via a separate application process for the Tourism, Hospitality and Gym Grant – turnover based payment (see eligibility guidelines for further information).

2. Turnover based payment December 2021

The Tourism, Hospitality and Gym Grant – turnover based payment provides further relief to those businesses that fall within the eligible ANZSIC codes (and those businesses required to operate under the density restriction of 1 person per 7 square metres).

The value of the Tourism, Hospitality and Gym Grant – turnover based payment is consistent with the grant amounts listed above.

If your business experienced a turnover decline of 30% or more from 27 December 2021 to 9 January 2022 (whether or not you have received an automatic payment), you MUST SUBMIT AN APPLICATION to receive this grant.

The reference period for the turnover decline is comparable 2 weeks in 2019-20 (or 2020-21 for those businesses that commenced trading after December 2020)

Applications for the turnover based payment are open through the Department of Treasury and Finance application portal. Applications close on 31 March 2022.

For example, an employing CBD restaurant with a 30% turnover decline over the period from 27 December 2021 to 9 January 2022 would be eligible to receive a total of $22,000 across the automatic and turnover based payments.

3. Additional round January 2022

The Tourism, Hospitality and Gym Grant – January 2022 is ADDITIONAL to the Tourism, Hospitality and Gym Grant – December 2021.

Grant amounts:

  • $6,000 for employing businesses with annual turnover below $2 million
  • $20,000 for employing businesses with annual turnover above $2 million
  • $2,000 for non-employing businesses
  • Additional grant of $2,000 for eligible businesses with a commercial premise in the CBD

If you successfully received the Tourism, Hospitality and Gym Grant – turnover based payment December 2021, you will automatically receive payment under the additional grant January 2022. Automatic payments should commence by 4 February 2022.

All other eligible businesses can also apply for the grant, but they MUST SUBMIT AN APPLICATION.

If you believe your business experienced a 30% turnover decline for the three week period from 10 January 2022 to 30 January 2022 when compared to an equivalent reference period, you can submit an application for this grant when it’s open on 14 February 2022.

To help you understand and determine whether your business needs to apply to receive this grant, view this Tourism, Hospitality and Gym Grant Flow Chart

BUSINESS HARDSHIP GRANT PROGRAM

1. December 2021

On 31 December 2021, the Business Hardship Grant – December 2021 has been introduced to provide assistance to those businesses impacted by health restrictions in place from 27 December 2021, but not eligible for the tourism, hospitality and gym grants.

Grant amounts:

  • $6,000 for employing businesses
  • $2,000 for non-employing businesses
  • Additional $2,000 for eligible businesses (both employing and non-employing) with a commercial premise in the Adelaide CBD. 

Businesses will NOT be eligible to receive a Business Hardship Grant – December 2021 if they have received support under any of the following State Government COVID-19 support packages launched on and after 27 December 2021, including:

  • Tourism, hospitality and gym grant – automatic payment;
  • Tourism, hospitality and gym grant – turnover based payment; or
  • Major Events Support Grant.

To be eligible for this grant, your business must experience at least a 50% reduction in turnover due to the restricted trading conditions over the two weeks from 27 December 2021 to 9 January 2022 compared to the comparable 2 weeks in 2019-20 (or the comparable 2 weeks in 2020-21 for businesses that commenced trading after December 2020).

There is no ANZSIC code eligibility requirement for the COVID-19 Business Hardship Grant.

You MUST SUBMIT AN APPLICATION for this grant.

Applications for the grant are open through the Department of Treasury and Finance application portal.  Applications will close on 31 March 2022.

2. January 2022

The value of the Business Hardship Grant – January 2022 payment is consistent with the Business Hardship Grant – December 2021 grant amounts listed above.

If you successfully received the Business Hardship Grant – December 2021, you will automatically receive the additional grant January 2022.

If your business has not submitted an application for the Business Hardship Grants – December 2021, or your application was unsuccessful and experienced a 50% turnover decline for the three week period 10 January 2022 to 30 January 2022 when compared to an equivalent reference period, you can submit an application for this grant when it’s open on 14 December.

To help you understand and determine whether your business needs to apply to receive this grant, view this Business Hardship Grant Flow Chart

Details on additional round grants are available at www.treasury.sa.gov.au/Growing-South-Australia/COVID-19

You can also download a copy of the detailed summary of these support grants.

3. February 2022

On 19 February 2022, the Government of South Australia established the Business Hardship Grant – February 2022 (Grant value up to $11,000) to provide additional assistance to those businesses that continue to be significantly impacted by COVID-19 related trading restrictions.

Businesses that have experienced a reduction in turnover of 50% or more during the entire month of February 2022 compared to the relevant period can apply.

Guidance for the Business Hardship Grant – February 2022

For further information and expert assistance, contact our KMT accountants today!

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or professional advice from your accountants at KMT Partners.