Has your business been impacted by COVID-19 restrictions? If you’re not eligible for the tourism, hospitality and gym grant, you may be entitled to a Hardship Grant. Client Manager, Josh Snelling outlines this turnover base payment in more detail.
On 31 December 2021, the Government of South Australia established the Business Hardship Grant to provide assistance to those businesses impacted by Covid 19 restrictions in place from 27 December 2021, but are not eligible for the tourism, hospitality and gym grants.
Eligible employing businesses will be provided with a once-off $6,000 grant. Eligible non-employing businesses will be provided with a once-off $2,000 grant.
A further grant of $2,000 will be available for eligible businesses that operate from a commercial premise located in the Adelaide CBD.
Eligibility
At the start of the restriction period of 12:01 am Monday, 27 December 2021 a business must:
- Have a valid and active Australian business number (ABN) and were carrying on the operation of a business in South Australia.
- Be registered for the GST.
- Either employ people or not employ people in South Australia.
- Have a total Australian grouped payroll of less than $10 million in the 2019-20 or 2020-21 financial year.
- Not be engaged in illegal activities.
Turnover Decline
For businesses that commenced trading prior to 30 June 2019, you will need to show a reduction in the business turnover of 50% or more when comparing the periods 27 December 2021 to 9 January 2022 with 27 December 2019 to 9 January 2020.
For businesses that commenced trading between 1 July 2019 and 30 November 2020, you will need to show a reduction in the business turnover of 50% or more when comparing the periods 27 December 2021 to 9 January 2022 with either 27 December 2019 to 9 January 2020 or 27 December 2020 to 9 January 2021.
For businesses that commenced trading between 1 December 2020 and 30 November 2021, you will need to show a reduction in the business turnover of 50% or more when comparing the average fortnightly turnover for the period between when the business commenced and 30 November 2021 with the period 27 December 2021 to 9 January 2022.
Restrictions
Businesses will only be able to claim one of the grants from the SA government, so if you have received any of the following, you will be ineligible for the Hardship Grant.
- Tourism, hospitality and gym grant – automatic payment;
- Tourism, hospitality and gym grant – turnover based payment; or
- Major Events Support Grant.
Businesses will be required to declare a reduction in turnover due to restricted trading conditions. They will not be required to provide any supporting information at the time of application but will be required to retain supporting information that could be made available if required such as:
- Turnover comparison data for the relevant assessment periods;
- Emails or texts to or from clients or suppliers detailing cancelled orders or appointments;
- Receipts for refunds provided;
- Invoices or delivery dockets.
Closing Date
Applications close midnight 31 March 2022.
Applicants are required to submit an application online via the Application Portal.
Business Hardship Grant – Additional Round
The government has announced an additional grant for the period 10 January 2022 to 30 January 2022. This grant is an additional grant of up to $8,000 which is dependent on if you operate from the CBD or employ people. If you were successful with the application for the grant for 27 December 2021 to 9 January 2022, the government will automatically pay this amount to businesses. If you were unsuccessful or didn’t apply you could be eligible for this payment you will be required to apply for the grant separately. This grant has the same eligibility, restrictions and required information to be kept. However, there is a difference in the periods for the turnover decline.
Turnover Decline
For businesses that commenced trading prior to 30 June 2019, you will need to show a reduction in the business turnover of 50% or more when comparing the periods 10 January 2022 to 30 January 2022 with 10 January 2020 to 30 January 2020.
For businesses that commenced trading between 1 July 2019 and 30 November 2020, you will need to show a reduction in the business turnover of 50% or more when comparing the periods 10 January 2022 to 30 January 2022 with either 10 January 2020 to 30 January 2020 or 10 January 2021 to 30 January 2021.
For businesses that commenced trading between 1 December 2020 and 30 November 2021, you will need to show a reduction in the business turnover of 50% or more when comparing the average weekly turnover, multiplied by 3, for the period between when the business commenced and 30 November 2021 with the period 10 January 2022 to 30 January 2022.
Closing Date
Applications close midnight 31 March 2022.
Applicants are required to submit an application online via the Application Portal.
If you would like assistance in completing the application or for more information, please do not hesitate to contact our office on (08) 8172 9150 or on info@mastertax.com.au.
