Support package for SA business impacted by restrictions

Cash grants of up to $22,000 together with liquor licence waivers and payroll tax deferrals are key features of a State Government funded business support package for hospitality and tourism businesses and gyms impacted by the latest imposition of density restrictions.

Initial cash grants of up to $11,000 will be paid to businesses from next week and the second cash grant of up to $11,000 will be paid after application and assessment.

The total cost of the support package is estimated to be about $40 million, but it is not possible to estimate accurately the total number of businesses that will be eligible for support. While previous business support packages have been funded by State and Federal Governments, this package is solely funded by the State Government.

“Omicron is a game changer, but by working together we will rise to the challenge and get through this,” Premier Steven Marshall said.

“As the virus changes, our response must also change, and that is why we are announcing this significant financial support package for hospitality and tourism businesses and gyms impacted by density restrictions.

“Our COVID recovery plan is focused on standing shoulder-to-shoulder with small businesses as we navigate our way out of the global pandemic.

“It’s no accident that SA is the fastest growing economy in the nation, with more South Australians employed than ever before in the history of our state, in the most livable place in the nation.

“However, we know we must continue to protect jobs and support SA businesses to get through this difficult time so they can help drive our economic recovery – which is exactly what this business support package does.

“South Australians have done an incredible job of working together and now is the time to continue to pull together to support our hardworking small businesses who are the backbone of the state’s economy.”

The Business Support Package consists of:

• Grants of up to $22,000 for eligible* tourism and hospitality businesses and gyms

  • Automatic payments of up to $11,000

    • For businesses in the relevant industry sectors that have previously received the Additional COVID-19 Business Support grant

    • Grants are $3,000 for employing businesses with a turnover below $2 million** and gyms, and $10,000 for those employing tourism and hospitality businesses with turnover above $2 million; $1,000 for non-employing businesses, and a further $1,000 for businesses with commercial premises in the Adelaide CBD

• Further payments, on application, of up to $11,000

  • Subject to turnover reduction of 30 per cent over the two week period commencing 27 December 2021, compared to equivalent period in 2019-20***

  • Amount consistent with the automatic payment, bringing total payments under the automatic and on application rounds up to $20,000 or $22,000 if operating in the Adelaide CBD

• Grants on application of up to $8,000 under a Business Hardship Grant for other eligible businesses (i.e. other than hospitality, tourism and gyms)

  • Subject to turnover reduction of 50 per cent over the two week period commencing 27 December 2021, compared to equivalent period in 2019-20

    • $6,000 for an employing business and $2,000 for a non-employing business

    • A further $2,000 for businesses with commercial premises in the Adelaide CBD

• A Major Events Support Grant of up to $100,000 for events cancelled or postponed due to the density restrictions introduced from 27 December 2021, for events scheduled between 27 December 2021 and 27 January 2022

  • Other criteria consistent with the previous Major Events Support Grant

• Payroll tax deferral for tourism, hospitality and gyms impacted by the trading restrictions upon application to RevenueSA. Any business operating in eligible sectors is able to apply for a deferral of payroll tax payments due over the period January to March 2022. Deferred payments will be due from April 2022.

• Liquor licence fees waived for liquor licence holders (not including packaged liquor sales or bottle shops) that were eligible and received JobKeeper payments under the second extension of the JobKeeper scheme from 4 January 2021 and had liquor licence fees halved for 2021-22 will have the remaining half of liquor licence fees paid/payable waived.

All components apply for eligible businesses with an Australia-wide grouped payroll of less than $10 million in 2019-20

* Must fall within an eligible ANZIC code or be required to operate under the 1 person per 7 square metre density restriction. Must have a valid ABN and be registered for GST

**Turnover based on 2019-20 or 2020-21

***Or 2020-21 if business did not trade in 2019-20