The Queensland Government have announced a $260 million package to support Queensland businesses, particularly small and medium sized enterprises. Named the 2021 COVID Business Support Program, $5,000 grants will be available to Queensland businesses across the state, not just businesses in the 11 locked down areas.
What grants will be available?
The $5,000 grants will provide cashflow support for small to medium businesses to support them adapt through current circumstances and allow them to continue to operate.
Further payments will also be made to affected large tourism and hospitality businesses within the lockdown areas.
Who will be eligible to receive the grants?
The grant provides support to small and medium businesses that employ staff. It is available to businesses across Queensland impacted by the South East Queensland lockdown that commenced on 31 July 2021. Your business doesn’t have to be located in South East Queensland, but you must have experienced at least a 30% reduction in turnover as a result of the lockdown.
Grants are also available for large businesses in the hospitality and tourism sector operating in the 11 local government areas in the lockdown, subject to meeting eligibility criteria.
Small and medium businesses are defined as having:
- a turnover of more than $75,000 per annum
- an annual payroll in Queensland of up to $10 million.
Local government areas subject to lockdown restrictions are:
- Brisbane City Council
- Gold Coast City Council
- Ipswich City Council
- Lockyer Valley Regional Council
- Logan City Council
- Moreton Bay Regional Council
- Noosa Shire Council
- Redland City Council
- Scenic Rim Regional Council
- Somerset Regional Council
- Sunshine Coast Regional Council.
To be eligible, your business or not for profit organisation must:
- employ staff (employees must be on your payroll and does not include any business owners)
- have an Australian Business Number (ABN) continuously held from 30 June 2021
- be registered for GST
- have Queensland headquarters (i.e. your principal place of business is located in Queensland) and have been trading in Queensland on 31 July 2021
- not be insolvent, or have owners or directors that are insolvent or an undischarged bankrupt
- have an annual payroll of not more than $10 million (except for large businesses and not for profit organisations operating in an identified tourism and hospitality sector) during any of the 2018–19, 2019–20 or 2020–21 financial years
- have an annual turnover of over $75,000 during any of the 2018–19, 2019–20 or 2020–21 financial years
- Note: Businesses that have recently started can provide financial records to show they will reasonably meet this turnover requirement in the 2021–22 financial year
- demonstrate the business or not for profit organisation was directly or indirectly impacted by a lockdown event
- demonstrate or declare a reduction in turnover of 30% or more during a nominated 7-day period
- this must include at least 1 full day of a lockdown event when comparing against turnover achieved during the same 7-day period in July or August 2019, or
- if the 2019 period does not indicate a typical weekly turnover (e.g. for a recently started small business or business that has experienced structural changes), include another comparable period (e.g. the same period in July/August 2020).
Large tourism and hospitality businesses and not for profit organisations must ensure they are undertaking business activities in any of the identified tourism and hospitality ANZSIC (Australian and New Zealand Standard Industrial Classification) code industry areas and meet all eligibility criteria (although you can have an annual payroll greater than $10 million). Check the ANZSIC codes listed below to see if you are eligible to apply.
Use this eligibility checker to test your eligibility.
What if I am a sole trader and don’t employ staff?
Sole traders may be eligible for support through the COVID-19 Disaster Payment with further information available on the Services Australia website.
How can I apply?
Businesses will need to apply online with supporting evidence. Grants will be processed in the order they are received.
If successful, grant funds will be paid within 2 weeks of being notified that your application has been approved. More information on how to apply, including the opening date for applications, will be available in the coming days.
Applications opened at 12pm, 16 August 2021.
Applications will remain open for three months, so you have plenty of time to prepare a quality application. This payment is not competitive and will not be limited to a specific number of successful applications. The grant will close to applications on 16 November 2021.
You will need to apply online with supporting evidence through the Queensland Rural and Industry Development Authority (QRIDA) portal.
To get ready, create a QRIDA profile so you can submit as soon as applications open.
If you do not have a QRIDA profile login, complete the following steps:
- Visit the QRIDA portal to create your profile.
- If you have not registered with QRIDA before:
- click on the ‘Register’ tab and enter your details
- after registering, QRIDA will send an email to validate your account – allow time to receive this email (remember to check your junk email too)
- when you have validated your account, you will be ready to log into the QRIDA portal and submit when applications open.
Supporting evidence requirements
You will need to demonstrate the following with your submission:
- Reduction in turnover of 30% or more – you must demonstrate or declare you have experienced a reduction in turnover of 30% or more over a nominated 7-day period (including at least 1 full day of a lockdown event) compared against the same 7-day period in July/August 2019. If the 2019 period doesn’t indicate a typical weekly turnover, include another nominated 7-day period (e.g. the same period in July/August 2020). Provide the following evidence to demonstrate:
- direct impact: – complete a declaration in your application
- indirect impact:
- submit sales turnover information from your business records for the relevant periods, or
- rely on a dated letter on letterhead issued by a member of CPA Australia, Chartered Accountants Australia & New Zealand, Institute of Public Accountants, registered tax agent or registered BAS agent.
- Employ staff – you must demonstrate you employ staff (in addition to the business owners and be employed on the business’s payroll). Evidence may include:
- business financial statements, business payroll records, payroll tax return information
- or
- a dated letter on letterhead issued by a member of CPA Australia, Chartered Accountants Australia & New Zealand, Institute of Public Accountants, registered tax agent or registered BAS agent.
- Annual payroll up to $10 million – you must demonstrate an annual payroll up to $10 million during any of the 2018-19, 2019-20 or 2020-21 financial years (except for large tourism and hospitality businesses and not for profit organisations operating in an identified tourism and hospitality sector). Evidence may include:
- business payroll records, payroll tax return information, or
- a dated letter on letterhead issued by a member of CPA Australia, Chartered Accountants Australia & New Zealand, Institute of Public Accountants, registered tax agent or registered BAS agent.
- Annual turnover of over $75,000 – you must demonstrate annual turnover of over $75,000 during any of the 2018-19, 2019-20 or 2020-21 financial years. Evidence may include:
- BAS statements or Australian Taxation Office records, or
- a dated accountant letter on letterhead from a member of CPA Australia, Chartered Accountants Australia & New Zealand, Institute of Public Accountants, registered tax agent or registered BAS agent.
- Trading location – to verify your trading location, you may provide:
- publicly available web information to identify your business operations (e.g. website or social media pages), or
- utility bills for the business location.
You can stay informed by visiting 2021 COVID-19 Business Support Grants website here.
More information
If you would like to discuss your potential eligibility for this grant or have questions about how to calculate your 30% drop in turnover, please contact your Arabon accountant directly or call 1300 ARABON.
