COVID-19 $10,000 State Government grant for small business

Bouy.pngThe South Australian State Government has stepped up its assistance offering for small businesses experiencing financial stress as a result of the Coronavirus restrictions, in the form of a $10,000 lifeline for highly impacted employers.

In our previous summary of the State Government's initial stimulus response, we confessed to being a little underwhelmed by the measures as announced. Essentially, there was nothing at all for a business with a total annual payroll of less than $1.5 million, unless it happened to meet a specific set of circumstances under the new Land Tax aggregation rules.

Thankfully, round two of the State Government response includes a $650 million 'Jobs Rescue Package'. Under the package, small businesses affected by the pandemic which employ people in South Australia can apply for a $10,000 grant to support their ongoing operations.

To be eligible, a business or not-for-profit (including eligible sporting and community organisations), must:

  • Have an ABN.
  • Have been operating in South Australia on 1st March 2020.
  • Employ people in South Australia as at that same date.
  • Have an annual turnover of more than $75,000 per annum.
  • Have annual payroll of less than $1.5 million. Presumably this is to prevent businesses from receiving the benefit of both the Payroll Tax reduction as previously announced (since the recent Payroll Tax reforms, Payroll Tax only kicks in on annual payrolls over $1.5 million) and this new grant. In fact, any Payroll Tax waiver received under the previously announced measures renders a business ineligible for the $10,000 grant.
  • Have experienced either closure or have been 'highly impacted' by the COVID-19 crisis. 'Highly impacted' includes a business that is eligible for the Federal Government's JobKeeper payment.

The application process for the grant became available for the first time today. Applications must be made by 1st June 2020 using the form at the Revenue SA online site.

To apply, you'll need to provide your contact details, a copy of a recent BAS, your bank account details, evidence of JobKeeper eligibility (apparently a screenshot will suffice) as well as evidence of your 2018-19 level of turnover (where applicable).

Please contact us for further information or assistance.

We're here to help and are continuing to offer complimentary phone calls to support you and your business with these measures during this time.

 

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