Micro & Small Businesses – Border Closure Critical Support Grants EXTENDED
Posted on August 17th, 2021 by WLF
The State Government has extended its support grants for businesses impacted by lockdowns and border restrictions in other states.
Applications are now open and close 8 October 2021 at 2pm. COVID-19 Micro and Small Business – Border Closure Critical Support Grant – Department of State Growth
The main points are:
- A second payment will be made to businesses that were successful in the first round of grants (no need to reapply – payments will be automatically made)
- A third grant will open in November for all applicants that have already received a grant under the program.
- Businesses with turnover of $25,000 or more are now eligible to apply for the funding.
- Changes to the turnover testing period
Eligibility criteria:
- Be an active Tasmanian business with a minimum annual turnover of $25,000 (excluding GST)
- Be able to demonstrate severe hardship caused by lockdowns in and other states and current border closures from Saturday 26 June 2021 and that the business has suffered a 30% reduction in turnover as a result.
- Be registered for tax purposes in Australia and have a continuously active ABN since on or before 1 May 2021.
- Be registered (if required) and actively using the Check in TAS App, or register at the time of submitting an application.
November round
- The business will need to demonstrate that their trading position has not changed in comparison to the previous relevant trading period.
Turnover reduction:
Applicants must demonstrate a 30% reduction in turnover for a consecutive two-week period after 26 June 2021. This must be done by comparing the following two periods:
- Period 1: two consecutive weeks from 26 June 2019 or 2020
- Period 2: equivalent two weeks after 26 June 2021
If the turnover for Period 2 is at least 30% less than the turnover for Period 1, the business will satisfy the turnover test. Supporting evidence will be required to demonstrate the reduction – this may be records from accounting software or an accountant or the business’ own records that would be used to support preparation of BAS or income tax returns. The records should detail income for the period and any impact of cancellations (e.g. refunds).
Grant amounts:
The amount you receive will depend on your turnover. Businesses already successful in applying for the first round will automatically be paid the additional grant amount. New applicants will receive both amounts in one payment.
|
Annual turnover exc GST |
First grant round |
Additional grant |
(need to reapply) |
Total possible grant payments |
|
$25,000 – $49,999 |
$1,000 |
$3,000 |
$3,000 |
$7,000 |
|
$50,000 – $1 million No employees |
$2,000 |
$6,000 |
$6,000 |
$14,000 |
|
$50,000 – $1 million Have employees |
$5,000 |
$15,000 |
$15,000 |
$35,000 |
|
$1 million – $5 million Have employees |
$10,000 |
$25,000 |
$25,000 |
$60,000 |
|
$5 million – $10 million Have employees |
$10,000 |
$50,000 |
$50,000 |
$110,000 |
Annual turnover is based on the 2020-21, 2019-20, 2018-19 financial years or the 2020 calendar year; and is defined as total sales of goods and services.
Application processing:
The grant is administered by the Department of State Growth. Applications will be assessed in order of receipt and approvals made in order of assessment. WLF encourages you to assess your eligibility and apply as soon as possible if eligible.
Please see the below link to the Department’s web page for further information and application process. WLF are of course ready to assist should you need us.
Business Hardship – Border Closure Critical Support Grant | Business Tasmania
WLF Accounting & Advisory, supporting Tasmanians to move forward through challenging times.
