Breaking news
15 August 2021
The Federal Government has announced a 50/50 funding agreement with Queensland to extend the original COVID-19 Business Support Grant. The Grant will now be extended to provide:
- A $1,000 one-off grant to non-employing sole traders across Queensland that have had a decline in turnover of more than 30%.
- Payroll-based support for all businesses across Queensland, that have had a decline in turnover of more than 30%:
- A $5,000 one-off, top-up grant to small business with a payroll of less than $1.3 million (this is in addition to the $5,000 already offered under the Business Support Grant);
- A $10,000 one-off, top-up grant to medium sized business with payroll between $1.3 million and $10 million (again, this is in addition to the $5,000 already offered under the Business Support Grant);
- A $25,000 one-off, top-up grant to large sized tourism and hospitality focused businesses only with payroll of greater than $10 million.
Businesses that are eligible for the payroll-based support will simply apply as outlined below.
We do not yet have details for how non-employing sole traders can apply for the $1,000 grant. We will update this post as soon as the information is released.
14 August 2021
Guidelines for the $5,000 COVID-19 Business Support Grants were released by the Queensland Government on 13 August 2021. All eligible applicants will receive the $5,000 grant.
Applications for the grant open at midday on Monday 16 August 2021. We have outlined below the key details of the grant.
You can also use the Queensland Government’s Eligibility Checker to see if you satisfy the eligibility criteria.
Eligibility Criteria
To be eligible for the $5,000 grant, your business will need to satisfy the following eligibility criteria:
1. You employee staff and have a payroll of less than $10 million per annum
To be eligible for the grant, your businesses must employ staff (in addition to the business owners). These staff must be on the business’s payroll. Your total payroll must not be more than $10 million per annum for each of the 2018-19, 2019-20 and 2020-21 financial years.
You can use the following evidence to prove these criteria:
- business financial statements, business payroll records, payroll tax return; or
- a letter from your accountant, tax agent or BAS agent.
2. Annual turnover of at least $75,000
To be eligible for the grant, your businesses must have a turnover of at least $75,000 for either the 2018-19, 2019-20 or 2020-21 financial year.
For recently started businesses, you can still be eligible if you can prove that you will reasonably meet this turnover threshold for the 2021-22 financial year.
The evidence to prove your turnover may include:
- business activity statements or ATO records; or
- a letter from your accountant, tax agent or BAS agent.
3. Your business turnover suffered a 30% reduction as a result of a lock down event (either directly or indirectly)
30% reduction in turnover
- A nominated 7 day period which includes at least one full day of a lock down event
- The same period from 2019 (or, if 2019 is not indicative of a typical weekly turnover, a comparable 7 day period)
Directly or indirectly impacted by a lock down event
You must also show that your business was directly or indirectly impacted by a lock down event:
- Directly impacted: Your business was directly impacted if it could not operate as specified in the lock down events;
- Indirectly impacted: Your business was indirectly impacted if:
- it was able to operate for a limited purpose during the lock down events; or
- its activities were not specified in the health directions for the lock down events but were impacted by lock down events; or
- it was located outside of the lock down areas.
Supporting evidence
- sales turnover information from your business records;
- a letter from your accountant, tax agent or BAS agent.
4. Have a Queensland headquarters
To be eligible for the grant, your business must have a Queensland headquarters – that is, your principal place of business is located in Queensland and the impacted business was based and trading in Queensland on 31 July 2021.
You can prove this by using publicly available web information (eg. website or social media information) or utility bills for the business location.
5. Have an ABN and be registered for GST
Your business must have an Australian Business Number (ABN) which has been continuously held since 30 June 2021. It also needs to be registered for GST. These criteria can be evidenced by ABN Lookup Search.
6. Not insolvent or undischarged bankrupt
The business owners/company directors must not be insolvent or undischarged bankrupts.
Application process
To apply for the grant, you will need do the following:
1. Set up a QRIDA account
2. Collate all of your supporting information
We have outlined above the supporting information that you will need for each eligibility criteria. You will need to have all of this information ready before lodging your application. For more information, also visit: https://www.business.qld.gov.au/starting-business/advice-support/grants/covid19-support-grants
2. Lodge your application
Applications open at midday on Monday 16 August 2021. They will remain open for 3 months until 16 November 2021. If QRIDA requests additional information, applicants must provide this information.
You will be notified by email of the outcome of your application.
Approved applicants will receive the $5,000 grant funds into their nominated bank account within 2 weeks of approval.
More information
For more information, go to the Business Queensland website: https://www.business.qld.gov.au/starting-business/advice-support/grants/covid19-support-grants
DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice. Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information. We recommend that our formal advice be sought before acting in any of the areas. The article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our consent.
Jeanette has over 20 years experience as an accountant in public practice. She is a Chartered Accountant, registered tax agent and accredited SMSF Association advisor. When she is not helping business owners grow their empires, you will likely find her out running on the trails or at the gym. Book in to see Jeanette today.