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Applications for a limited number of Small Business Grants now open until 24 August

Applications for a limited number of Small Business Grants now open until 24 August

Applications for a limited number of Small Business Grants now open until 24 August

Applications are now open for a limited number of Tasmanian Government's new $5,000 Small Business Sustainability and Recovery Grants which will be available to assist small businesses impacted by border closures and public health restrictions. These will be awarded through a competitive merit-based assessment to eligible businesses. We have summarised the key elements of the grant program for you below.

UPDATE: THIS GRANT HAS NOW BEEN CLOSED.


Key points:

  • Grants are limited - only 3,000 grants of $5,000 each will be awarded
  • This is a competitive merit based program, so applicants who meet the eligibility criteria will not automatically receive the grant but will be assessed on a competitive basis against the assessment criteria
  • Applications opened at 12 noon on 3 August and will close at 12 noon on 24 August
  • Assessment of grants will begin after the grant program has closed. A high number of applications are expected and the time taken to complete assessments is estimated to take at least six weeks from 25 August 2020 (i.e. to at least 6 October).
  • Submissions are to be made via SmartyGrants from the Business Tasmania website. Manual applications can be requested by calling Business Tasmania on 1800 440 026.
  • The grants will be taxable income to successful applicants.
  • Ineligible entities:
    • Not-for-profits, incorporated associations and charities;
    • Any business that has previously received Tasmanian Government COVID-19 Business Support Loan assistance exceeding $75,000;
    • Any business that had a total payroll exceeding $1.25 million for the 2019 financial year;
    • Taxi or ride-sharing operators;
    • Businesses under external administration or bankruptcy.
  • Eligibility criteria:
    • Business employed fewer than 20 Full Time Equivalents at 29 February 2020; AND
    • Had an ABN as at 29 February 2020 which continues to be active; AND
    • Had an annual turnover of more than $50,000 (excluding GST) for 2019 or 2020 financial year (for recently established businesses, estimate that the annual turnover will exceed $50,000 excluding GST for the 2021 financial year); AND
    • At least 50% of the business owner's income must be derived from the applicant business; AND
    • Business predominantly operates in Tasmania and business owners reside in Tasmania.
  • Assessment criteria:
    • How the border closures or public health restrictions or interstate/international export markets subject to COVID-19 related restriction are continuing to directly or indirectly impact the operation of business. (20%)
    • The financial impact the above restrictions and conditions are continuing to have on the business. (20%)
    • The measures that have been implemented by the business owner to sustain the business between March 2020 and July 2020. (30%)
    • The additional measures that will be implemented to sustain the business into recovery. (30%)
  • Emphasis will be placed on quality supporting information. Examples of financial information that could be provided to support your application:
    • Business Plan;
    • Profit and loss statements prepared by your accountant for the full 2019 and 2020 financial years. If you do not have the 2020 financial statements yet, a copy of your official management accounts from a financial software product such as MYOB, XERO, or Quickbooks for the full 2020 financial year will suffice;
    • If a new business, forecast revenue;
    • Industry statistics on available market share, growth opportunities in the sector and the original business plan will help assessors to confirm and support your claims;
    • Business Continuity Plan.

Important: Applications must be submitted and lodged by the business owner - third party submissions on behalf of a business owner are ineligible. Business owners, through associated entities, cannot apply for more than one grant per ABN.

If you wish to apply for this grant, we would be happy to assist with compiling the necessary supporting information. 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 at 12 noon on 24 August 2020.

As always, the Ruddicks partners and staff are here to help with any questions you may have about this grant program or any taxation matters.


Further information:

Business Tasmania page for the grant program

Grant program guidelines

Grant program FAQ

DISCLAIMER:

Liability limited by a scheme approved under Professional Standards Legislation.

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 4 August 2020, 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. © Ruddicks 2020

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