10 April 2020
To assist South Australian (SA) small businesses through the current economic crisis, the SA Government’s $650 million ‘Jobs Rescue Package’ is set to fund eligible businesses with a one off $10,000 cash grant. The grant will work in conjunction with the federal governments stimulus measures.
The eligibility criteria the business needs to meet includes:-
- Employing people in South Australia
- Turnover of more than $75,000
- Payroll less than $1.5 million, and not entitled to a payroll tax waiver under COVID-19 support measures introduced by the SA government
- Having an ABN and carrying on an active business in SA on 1 March 2020
- Having been subject to closure or ‘highly impacted by COVID-19 related restrictions’
- Use the funds to support activities related to business operations
- Apply by 1 June 2020
What does ‘highly impacted by COVID-19 related restrictions’ mean I hear you say? This is defined as those businesses which meet the definition of the Commonwealth JobKeeper payment (i.e. at least a 30% or 50% drop in estimated turnover (depending on scale of business)). Those that do will be deemed to have been ‘highly impacted by COVID-19 related restrictions’.
There are some additional conditions in relation to the grant that may reduce the amount received that you may need to consider which we can help advise on.
Currently, similarly to the JobKeeper payment, there is only an ‘ability to register’ your interest, with applications to open soon. We would recommend at least registering your interest to learn about the next steps if you believe you are, or will be, eligible. This can be done at https://www.treasury.sa.gov.au/Growing-South-Australia/COVID-19/registration
There are some additional SA Government measures in addition to the above to consider, including:-
- Payroll Tax relief – a possible 6 month waiver (April to September 2020) for those businesses with applicable wages of up to $4 million – no application required. Revenue SA will notify these businesses through RevenueSA Online. Businesses with more than $4 million in applicable wages can apply for relief.
- Job Accelerator Grants – some relaxing of the criteria for the existing grants in process, in regards to maintaining overall employment levels https://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief
- Cost of Living (COL) concession – a once-off boost of $500 and bring forward of the 2020/21 COL concession for households receiving the federal JobSeeker payments.
- Land Tax – an increase in the existing ‘land tax transition fund relief’ as well as the ability for quarterly land tax payers being able to defer payment of their remaining 2019/20 land tax payments for 6 months.
For those in business in other states, we will also advise on any state related measures that may apply to you and your business.
If you would have any queries, or would like to get in contact with us to discuss the above measures, please don’t hesitate to contact our office on (08) 8132 6400 or email@example.com and we would be happy to help.