Just after Christmas, the State Government announced further health restrictions due the impact of the Omicron variant of Covid. These rules were specifically introduced for businesses in tourism and hospitality and gyms, and focused mainly on density limits.
On 31 December, the State Government announced financial support packages targeted at businesses in the industries impacted by the restrictions. They also announced a “business hardship grant” which is available to businesses who aren’t in tourism, hospitality, or a gym but have been significantly impacted by Covid restrictions. Further detail is provided below regarding these grants.
There are also many South Australians contracting Covid which means they may be eligible for the Pandemic Leave Disaster Payment which is a Federal Government payment made available to people who are unable to work due to having the virus or having to care for someone with the virus.
There are a number of eligibility criteria for both the business and individual payments.
Support for South Australian businesses
Tourism, hospitality, and gyms
An automatic payment was made to businesses in these industries where they received the previous COVID-19 Tourism and Hospitality Support Grant and gym operators that received Additional COVID-19 Business Support grant. The amount of the payment made was dependent upon a number of factors but includes:
- $3,000 for an employing business or $1,000 for a non-employing business
- An additional $1,000 for businesses located in the CBD
- An additional $7,000 for tourism and hospitality businesses with turnover above $2 million
These payments were made automatically so if you believe you should have received this payment and haven’t, please let us know.
A second grant for operators in these industries is available where the business can show a 30% downturn in turnover when comparing the turnover for the two weeks from 27 December 2021 to 9 January 2022 to a comparable two-week period (generally the same two-week period in 2019 – 2020). Where the business can show this drop in turnover, they will receive a second grant at the same value as the automatic grant payment referred to above.
This grant must be applied for via the portal on the SA Treasury website (link below).
If a business did not receive the automatic payment, they can still apply for the second grant if they can demonstrate a 30% decrease in turnover. Businesses have until 31 March 2022 to apply for this grant.
Business hardship grant
Businesses that are not eligible for the tourism, hospitality and gym grants may still be eligible for the business hardship grant where they can show a 50% downturn in turnover when comparing the turnover for the two weeks from 27 December 2021 to 9 January 2022 to a comparable two-week period (generally the same two-week period in 2019 – 2020).
Eligible businesses will receive $6,000 where they employ staff or $2,000 where they do not employ staff. This grant must be applied for via the portal on the SA Treasury website.
Other financial support
The State Government has also announced other, very specific, financial relief including:
- Major Events Support Grant – this is only payable to operators of major one-off events that were impacted by the restrictions
- Payroll tax relief – tourism, hospitality, gyms, and other eligible businesses that have been impacted by trading restrictions may apply for a payroll tax deferral
- Liquor licence fee relief – the State Government has provided a waiver of annual liquor licensing fees for 2020-21 for a number of categories
If you believe any of these are relevant to your business, please contact us or refer to the link below for further information.
Important eligibility requirements
To be eligible for the grants, businesses must:
- Be registered for GST
- Be located/operating within SA
- Have a valid ABN
- Have Australia-wide grouped payroll of less than $10 million in the 2019-20 or 2020-21 financial year
Please go here for further information from SA Government Treasury.
Pandemic Leave Disaster Payment for individuals
The Panic Leave Disaster Payment is overseen by the Federal Government and paid through Services Australia. This is payable to people who are required to isolate due to a positive PCR or RAT Covid test however, where the result of a RAT is being used, the result must be registered with the relevant health authority to be eligible for the payment. It is also available in some circumstances to carers and people who are close contacts and have been directed to isolate.
There are a number of eligibility requirements to be met to be entitled to this payment.
To determine whether you are eligible for this payment, please go here to work through the criteria for South Australians.
If you have any questions in relation to the above, please contact your Holman Hodge adviser.