Apply before 8 October for the Supercharged Business Support Package
Up to a total of $110,000, for example, if you are a business who satisfies the eligibility criteria and has a turnover of between $50,000 and $1m you may be entitled to a grant of $35,000.
The grants apply to Tasmanian businesses that have suffered a significant reduction in turnover due to COVID-19 impacts. The lower turnover must be as a direct result of border restrictions that have decreased visitor numbers and/or a reduction in the ability to provide, sell or import goods and services.
If previous COVID19 related business support grants have been successful or are being assessed then no further paperwork is required to receive the September - October round payment. To receive the November round payment, applicants may need to reconfirm their hardship status.
Grants will be based on business annual turnover (exclusive of GST) as follows:
1. Micro business operators (Total grant up to $7,000)
- Sole traders, or businesses with an annual turnover of between $25,000 and $49,999, and have been impacted by a reduction in turnover by 30 per cent or more.
2. Sole traders or small business operators (Total grant up to $14,000)
- Sole traders, or businesses that do not employ staff, with an annual turnover between $50,000 and $1 million, and have been impacted by a reduction in turnover by 30 per cent or more.
3. Impacted small businesses with employees (Total grant up to $35,000)
- For those businesses that employ staff with annual turnover between $50,000 and $1 million and have been impacted by a reduction in turnover by 30 per cent or more.
4. Impacted medium businesses (Total grant up to $60,000)
- For those businesses that employ staff with annual turnover between $1 million and $5 million and have been impacted by a reduction in turnover by 30 per cent or more.
5. Impacted large businesses (Total grant up to $110,000)
- For those businesses that employ staff with annual turnover between $5 million and $10 million and have been impacted by a reduction in turnover by 30 per cent or more.
The grants will be paid by instalments; first instalment in September / October soon after assessment and second instalment in November subject to a continued / further turnover decline test. Grant recipients may have the details of the grant made public.
Applicants must satisfy all of the following:
- Be a Tasmanian business with a minimum annual turnover of $25,000 and be able to demonstrate having suffered severe hardship as a result of lockdowns in other states and current border closures from Saturday 26 June 2021.
- Be a Tasmanian business that has NOT received a grant under the previous Business Hardship – Border Closure Critical Support Grant (now closed).
- Be registered for tax purposes in Australia with a continuously active ABN on or before 1 May 2021.
- Be an actively operating Tasmanian eligible business that has suffered at least a 30 per cent reduction in turnover as a direct result of lockdowns in other states and current border closures from 26 June 2021.
- Be registered (if required) and actively using the Check in TAS App, or register at the time of submitting an application.
Applicants are ineligible if one or more of the following applies:
- Businesses that have received a Business Hardship – Border Closure Critical Support Grant (now closed).
- Businesses who have not been directly impacted by current lockdowns in other states and current border closures from 26 June 2021.
- Local, State or Australian Government entities.
- Not-for-profit organisations, incorporated associations, or charities UNLESS the organisation is operating as a business and employing paid staff and / or selling goods and services that make up more than 30 per cent of their income.
- Any business that is trading insolvent, under external administration or bankruptcy.
- Investment entities (such as unit trusts and superannuation funds) including residential and commercial property investments/rentals.
Calculating Reduction in Turnover
Applications will be required to provide supporting evidence to demonstrate a reduction in turnover as a direct consequence of the lockdowns and border closure restrictions in other states.
Applicants must demonstrate a reduction in turnover of at least 30% for:
- a minimum two week consecutive period from Wednesday, 26 June – 7 October 2019 or 2020, compared with
- the equivalent two weeks between Saturday, 26 June – 7 October 2021.
Applications will be assessed based on the information provided, and subject to spot audits.
Round one of the grant program will remain open for applications until 2:00pm on Friday 8th October 2021. Grants will be assessed in order of receipt and payments made to successful applicants as soon as possible after approval.
If you wish to apply for this support grant, we would be happy to assist with compiling the necessary supporting information or making the application on your behalf. Where we submit an application on your behalf, we’ll need your signed written permission to do so.
Please contact your Ruddicks adviser as soon as possible to ensure that there is sufficient time to prepare the necessary financial reports before the applications close.
Tax Treatment of Small Business Support Payments
Presently, government grants are generally treated as assessable income. However, the ATO has treated certain COVID-19 small business support grants made by NSW and Victorian governments as non-assessable non-exempt for income tax purposes. The Tasmanian Government grants above may be eligible for this treatment on declaration by the relevant Federal Minister. We will keep you informed of any developments.
The following link provides further information on the tax treatment of small business support payments:
Further Support Announced
Further financial relief is available for eligible businesses through waiving of fees and charges such as payroll tax, vehicle registration and passenger transport accreditation fees, and license fees payable to Parks & Wildlife.
The further support includes:
- payroll tax relief for tourism and hospitality industry businesses where there has been a 30 per cent reduction in turnover in the September 2021 quarter;
- waiving vehicle registration and passenger transport accreditation fees for vehicles including taxis, luxury hire cars, tour operator buses and rental car operators for renewal notices received between 1 July until 31 December 2021; and
- waiving the license fees payable to Parks & Wildlife which removes a significant burden for tourism businesses operating within Tasmania’s Parks.
How to access this support has yet to be released.
As always, the Ruddicks partners and staff are here to help with any questions you may have about how to apply for this grant and any taxation matters that will arise on receipt.
Click on the below links to learn more or apply for the small business grant.
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The content of this newsletter is general in nature. It does not constitute specific advice and readers are encouraged to consult their Ruddicks adviser on any matters of interest. Ruddicks accepts no liability for errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. This information is current as at 16 September 2021, and was published around that time. Ruddicks particularly accepts no obligation or responsibility for updating this publication for events, including changes to the law, the Australian Taxation Office’s interpretation of the law, or Government announcements arising after that time.
Any advice provided is not ‘financial product advice’ as defined by the Corporations Act. Ruddicks is not licensed to provide financial product advice and taxation is only one of the matters that you need to consider when making a decision on a financial product. You should consider seeking advice from an Australian Financial Services licensee before making any decisions in relation to a financial product.