UPDATE: 2021 COVID-19 Queensland Business Support Grants (August 2021 Lockdown)

Lockdown_Brisbane

This article has been updated on 17 August 2021 now that full details around eligibility and claims have been released.

The Queensland Government has just announced that minimum $10,000 grants will be made available to small and medium businesses across Queensland affected by the current COVID-19 lockdown (commencing Saturday 31 July 2021) and lockdowns in other states.

Successful applicants will receive the total value of the boosted grants ranging from $10,000 to $30,000 depending on the size of the annual payroll.

 

Key dates.

The Application for the 2021 COVID-19 Business Support Grants opens at 12 pm on 16th of August 2021. Applications for these grants will remain open for three months, so there is time to get your application ready and apply. Unlike previous stimulus grants, 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.

 

What is available?

These $10,000 to $30,000 grants will provide cash flow support for businesses and help them adapt to evolving circumstances.

Additional support payments will also be provided to affected large tourism and hospitality businesses within the lockdown areas (see bottom of this article for more information on this specific support).

All the eligible businesses who apply for a grant during the 3-month application period will receive funding.

 

Eligibility criteria.

The grant provides support to employing small and medium businesses across Queensland impacted by the Southeast Queensland lockdown that commenced on 31 July 2021. Your business does not have to be in Southeast Queensland, but you must have experienced at least a 30% reduction in turnover because of the lockdown.

Small and medium businesses are defined as having:

  • a turnover of more than $75,000 per annum, and
  • an annual payroll in Queensland of up to $1.3 million to receive $10,000
  • an annual payroll in Queensland of $1.3 million to $10 million to receive $15,000
  • finally, large sized tourism and hospitality focused businesses with payroll more than $10 million to receive $30,000

Basic eligibility criteria:

  • Your business ABN must have been active as at 30 June 2021 or earlier. If your business started after 30 June 2021, then you will not be eligible for this grant.
  • Must be an employing small and medium business (have employees on payroll), and,
  • must have experienced at least a 30% reduction in turnover because of the lockdown.
  • must show or declare a reduction in turnover of 30% or more for a 1-week period that includes at least 1 full day of the:
  • Southeast Queensland lockdown commencing 31 July 2021
  • Cairns and Yarrabah lockdown commencing 8 August 2021
    or
  • any other lockdown in Queensland in August 2021.
  • The criteria does not mention whether this reduction is to be calculated on a cash or accruals basis. We’d recommend first looking on the same basis as your BAS lodgement – if your BAS is lodged on accruals, then calculate your decline on accruals too. If you are not eligible on the basis of your BAS lodgement, but you are eligible on another basis (and the other basis is representative of the decline you suffered), then it will be worth considering lodging on that basis or enquiring for more information.

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.

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.

Utilise this eligibility tool to test your eligibility.

 

Sole Trader Grant

Sole traders based in Queensland also can receive $1,000 Grant. They need to operate as an individual sole trader with no staff. Turning over at least $75K, Be GST registered, with 30% or more reduction in nominated 7 days period comparing to the same time in 2019. The Application due date is 30 November 2021. Please note that if you are earning rental from properties, receiving interest on investments, or receiving dividends, you are not eligible to apply for $1,000 grant

 

Support for non-employing sole traders.

Non employing sole traders may be eligible for support through the COVID-19 Disaster Payment with further information available on the Services Australia website.

Sole traders that are employing businesses will be eligible for the grants if they are not receiving, or are not eligible to receive, income support through the Australian Government’s disaster payment.

 

How to apply for Queensland Government $10,000 grant?

Create a QRIDA profile. QRIDA is the Queensland Rural and Industry Development Authority. Creating a QRIDA profile is the first step in the application process. It is the only way businesses can apply for the grant.

Now that if you applied for a QRIDA Jobs Support Loan (up to $250k), then you will already have a QRIDA profile.

Here’s the link to the QRIDA portal.  From here you will be able to create a profile and apply for the grant.

 

Supporting evidence required.

All below items are mandatory in providing evidence in relation to your application:

  • Evidence of 30% less turnover
  • Demonstration or declaration of 30% reduction in a nominated 7-day Period which includes at least one full day of a lockdown event and compared against the same 7-day period in July/August 2019.
  • If the 2019 period doesn’t cover a working week period for your business (ie because your business did not exist then), you may choose another relevant 7-day period for providing the information. For example, a 7-day period in the July or August 2020.
  • You can demonstrate this indirectly by submitting the sales turnover information from your business records in the relevant periods or
  • obtain a written declaration from your accountant, tax agent or BAS agent.

Xero Tip: If you use Xero as your accounting platform, then there is a built-in tool to assist in calculating your decline in turnover. To access this tool, login to Xero > Accounting > Reports > COVID-19 Business Support (in the tax section) > select COVID-19 Business Support> then enter your dates to check your decline in revenue. Ensure you select cash or accruals as per your BAS registration.

  • Evidence of Employing Staff
  • Provide business financial statements, payroll records or payroll tax information or
  • Obtain a written declaration from your accountant, tax agent or BAS agent.

Note that it is necessary to show that the business employs staff in addition to the business owners on the payroll system.

  • Annual payroll up to $10 million: Your business must show that annual payroll expense does not exceed $10 Million during any of the 2018-19, 2019-20 or 2020-21 fiscal years.
  • The evidence related to the payroll can be business payroll records, payroll tax return information or
  • Obtain a written declaration from your accountant, tax agent or BAS agent.
  • Annual turnover of over $75,000: Your business must demonstrate annual turnover of more than $75,000 during any of the 2018-19, 2019-20 or 2020-21 financial years.
  • Evidence may include BAS statements or income tax returns or
  • Obtain a written declaration from your accountant, tax agent or BAS agent.
  • Trading location: To verify your location you need to provide:
  • Public web information such as website or social media identifying your business operations or
  • Utility bills for the business Location.

 

Other details.

  • Like other Queensland grants, this grant will be included in your business’ 2022 taxable income.
  • There is no GST on the grant
  • The grants will be processed in the order they are received by QRIDA, and they estimate a 2 week turnaround time.

 

Support for Large Tourism and Hospitality providers.

This will include fee rebates and payroll tax relief in the COVID-19 Lockdown support worth $47.5 Million in total fundings. If you are impacted by the recent lockdown in Southeast Queensland and Cairns please visit the Business Queensland page of the Queensland Government website.

 

Further advice.

As always, reach out to Link Advisors if you have any questions about the grant or to help determine if you are eligible under the 30% turnover reduction criteria.

Detailed information about the Grant can be found here.