Lifeline cash grants for South African small businesses and income support payments for regional workers

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The new business support program – worth around $ 100 million – will help around 50,000 eligible SMEs * across the state, from gyms, hairdressers and nail salons to restaurants, cafes and hotels, affected by the new and tightened restrictions needed to help stop the spread of the highly contagious variant of COVID-19 Delta.

It will help businesses cover day-to-day operating costs such as rent, utility bills, supplier and raw material costs and other charges, and can reopen when restrictions ease.

The main support program also includes a new cash grant of $ 1,000 for qualifying small businesses ** that do not employ staff (eg, independent traders who do not employ).

This is an immediate lifeline for the small and medium-sized businesses that are the lifeblood of our community and underpin our economy.Said Treasurer Rob Lucas.

“We know this is an incredibly difficult time for many employers and their staff, which is why we are doing everything in our power to help as many businesses as possible get to the other side of this court. locking.

“The $ 3,000 grants will provide an immediate injection of cash to eligible businesses affected by the restrictions, improving cash flow and helping to cover costs such as commercial rent and utility bills or supplier fees.” for raw materials. “

Modeled on similar programs in Victoria, New South Wales and Western Australia, SA grants apply to companies with a payroll of less than $ 10 million, with an annual turnover of 75 $ 000 or more (in 2020-2021 or 2019-20) and whose turnover is reduced by at least 30% over the 7 days from July 20, 2021 due to containment.

Lucas said the government would consider the possibility of additional support if the lockdown was extended beyond seven days.

“While we have no information to suggest this will be the case, we will consider what additional help could be provided to businesses if the lockdown is extended beyond the current seven days,” Lucas said.

In another important announcement today, the state government will provide:

  • Fully funded income support payments of up to $ 600 per week for eligible workers ^ in regional SA, who live or work outside the “hotspot” declared by the Commonwealth local government areas (and, therefore, are not eligible for support payments of $ 375 or $ 600 per week from the federal government).

The Commonwealth’s COVID-19 Disaster Payment Program provides $ 375 per week for workers who have lost 8 to less than 20 hours of work, or lost a full day of work, and $ 600 per week if a person lost more than 20 hours. job.

Mr Lucas said the state government would match income support payments for workers outside of declared Commonwealth “hot spots” in the Adelaide, Hills and Gawler metro areas.

“Our commitment will ensure that workers in South Australia whose hours are affected by the current lockdown are supported, whether they work in Mitcham or Mount Gambier, Norwood or Nuriootpa, West Beach or Whyalla,” said said Mr. Lucas.

The government has been advised, and is seeking to confirm with the Commonwealth government, that the vast majority of non-GST-registered micro-businesses will be eligible for the COVID-19 disaster payment of $ 600 / $ 375 per seven-day period.

In addition, Mr Lucas said if the lockdown continues beyond two weeks, the Commonwealth Government has indicated it will contribute to the cost of additional business support.

“We welcome the continued support of the federal government as we work together to gain the upper hand over the current COVID cluster and drive the state’s ongoing strong economic and employment recovery and return to the way of life that has brought us back. has earned a growing global reputation as one of the most livable cities in the world, ”Mr. Lucas said.

Mr Lucas said that, as was the case throughout last year, the state government will continue to monitor the situation and consider the possibility of additional targeted additional support for individual industrial sectors. .

Information on government support will be available on the SA Treasury website today (treasury.sa.gov.au/sbg) and to express interest in Business Support Cash Grants Australia of the South are encouraged to send an email to [email protected]

Grant applications are expected to be opened within the next two weeks via the Treasury website and grants will be processed as quickly as possible.

* To be eligible for the one-time emergency grant of $ 3,000, a business must, on Tuesday July 20, 2021 at 12:01 am:

  • Be located in South Australia
  • Have an annual turnover of $ 75,000 or more in 2020-2021 or 2019-20, and be registered for the GST
  • Employ people in South Australia
  • Have an Australia-wide payroll of less than $ 10 million in 2019-2020
  • Have a valid Australian Business Number (ABN)
  • Has experienced a reduction of at least 30 percent (from the previous week) in sales due to tight business conditions

** To be eligible for the one-time emergency grant of $ 1,000, an unemployed business must meet the criteria listed above, excluding the requirement to employ people.

^ Payments will be paid in arrears for the lockdown and anyone affected will be able to apply through myGOV from Wednesday July 28.

More information, including how to claim the Commonwealth COVID-19 Disaster Payment (including the corresponding Income Support Payment for eligible SA individuals outside of declared Commonwealth Access Points) will soon be available at Services Australia website at: https: //www.servicesaustralia. gov.au/individuals/services/centrelink/covid-19-disaster-payment


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