Cash injection for struggling businesses
Businesses struggling with the Omicron wave of the pandemic have been offered new grants and support in NSW, SA and WA.
Numerous State Governments have offered new grants to help businesses continuing to struggle with the ongoing impacts of the pandemic on their businesses. So what support is available and how can your business access it?
We highlight the key issues for NSW, South Australia and Western Australia below.
New South Wales
The NSW Small Business Support package provides eligible employing businesses with a lump sum payment of 20% of weekly payroll, up to a maximum of $5,000 per week for the month of February 2022. The minimum weekly payment for employers is $750 per week.
Eligible non-employing businesses will receive $500 per week (paid as a lump sum of $2,000).
To access the package, businesses must
- Have an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2021; and
- Experienced a decline in turnover of at least 40% due to Public Health Orders or the impact of COVID-19 during the month of January 2022 compared to January 2021 or January 2020; and
- Experienced a decline in turnover of 40% or more from 1 to 14 February 2022 compared to the same fortnight in either 2021 or 2020 (you must use the same comparison year utilised in the decline in turnover test for January); and
- Maintain their employee headcount from "the date of the announcement of the scheme" (30 January 2022).
The support package only covers the month of February 2022. Applications for support close 31 March 2022
The South Australian Government has introduced two rounds of support for businesses impacted by health restrictions:
- The Tourism, hospitality and gym grant provides $6,000 for employing businesses and $2,000 for non-employing business whose turnover reduced by 30% or more between 10 January 2022 to 30 January 2022 (inclusive) comparable to 2019-20 (or 2020-21 for new business). The grant will automatically be paid to those who applied for and received the grant based on the turnover period 27/12/21 to 9/1/22.
- The Business hardship grant provides $6,000 for employing businesses and $2,000 for non-employing businesses whose turnover reduced by 50% or more between 10 January 2022 to 30 January 2022 (inclusive) comparable to 2019-20 (or 2020-21 for new business). The grant will automatically be paid to those who applied for and received the grant based on the turnover period 27/12/21 to 9/1/22.
Applications for the grants open 14 February 2022.
Western Australia has been hit with compounding issues of border closures, COVID-19 and natural disasters.
The latest grant provides financial assistance of up to $12,500 ($1,130 for each impacted day) to small businesses in the hospitality, music events or arts sectors that were directly financially impacted by the Chief Health Officer's COVID Restrictions (Directions) from 23 December 2021 to 4 January 2022. Non-employing businesses will receive up to $4,400 ($400 per day).
To be eligible, your business must:
- Be located within the Perth, Rottnest or Peel regions; and
- Have a valid ABN; and
- Have an annual turnover of more than $50,000; and
- Australia wide payroll of less than $4m in 2020-21; and
- Operate in the hospitality sector, the music events industry or the creative and performing arts sectors that were directly impacted by the restrictions; and
- Have experienced a decline in turnover of at least 30% compared to the same period in the prior year (or another comparable period for new businesses).
Applications are open through SmartyGrants.
Get ready with the help of your accountant
For more information about how we can help you to get ready for for business support, please contact us on 02 9957 4033.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.