State Government Outlines New Support for SA Businesses & Workers

Overview:

In support of the Federal Government’s economic relief measures to combat the impacts of COVID-19, the South Australian State Government last week moved to introduce a further stimulus measure of its own.

See the links below to visit the Perks COVID-19 Resource Hub page on Stimulus Measures & Payments for SA, and all other States.

The new $650 million Jobs Rescue Package is designed to complement Federal Government measures, including the JobKeeper Payments, and is aimed at keeping South Australians in work and supporting business to remain operational through the pandemic.

The most significant initiative under the Jobs Rescue Package is a $10,000 grant for small businesses and not-for-profit employers that meet the following criteria:

• Is a business or not-for-profit (including sporting and community organisations) that employs people in SA.
• Has an annual turnover of more than $75,000 (GST exclusive).
• Has an ABN and be carrying on a business in SA as at 1 March 2020.
• Has been subject to closure or highly impacted by COVID-19 related restrictions. See Note 1
• Has an annual payroll of less than $1.5M and is not entitled to a payroll tax waiver under the previously announced support measures. See Note 2
• Uses the funds to support activities related to the operation of the business.

Eligible businesses can apply for the grant here.

A formal application process commenced on the 21st of April and will be open until 1 June 2020.

Note 1:  Any business that is eligible for the JobKeeper Payments will meet this criterion. Submissions should highlight the impacts of COVID-19 through loss of income and other impacts.

Note 2: While the $1.5M in payroll is entity specific, the payroll tax group could be above $1.5M but less than $4M and thus be entitled to the waiver previously announced. Care should be taken here.

Payroll Tax Update

The State Government has also announced that it is waiving all payroll tax liabilities on JobKeeper Payments so that businesses can realise maximum benefit from the initiative. For further details, see the full statement on the RevenueSA website here.

$10K SA Small Business Grant FAQs

Q. Can I access the Small Business Grant if I don’t employ any staff within my business?

A. This grant is open to South Australian businesses that have employees during the 2019-20 financial year and as at 1 March 2020. If you’ve had to let staff go after 1 March 2020 as a result of restrictions announced by the Government, you will be eligible to apply – subject to other eligibility criteria.

Q. I’m a contractor. Am I considered an employee and eligible for the Small Business Grant? 

A. To be considered an employee, you must be under the control of the business, and you must be paid Pay As You Go Withholding (PAYGW) amounts and superannuation by the employer.

Q. As a sole-trader, am I eligible for the Small Business Grant?

A. Your business must have staff employed staff as at 1 March 2020 to be eligible. For the purpose of the Small Business Grant, an owner of a business is not deemed an employee.

Q. My business has a partnership structure – am I eligible for the Small Business Grant?

A. Your business must have staff employed staff as at 1 March 2020 to be eligible. For the purpose of the Small Business Grant, partners of a business are not deemed employees.

Q. Are directors or shareholders of a company regarded as employees for the purpose of assessing eligibility for the Small Business Grant?

A. Yes, if a director or shareholder is employed in a role other than a director or shareholder and are paid a wage, PAYGW amounts and superannuation by the employer.

Q. What do I need to provide in order to prove my business’ annual turnover is greater than $75,000?

A. A Business Activity Statement (BAS) is required as proof that your business has a turnover greater than $75,000 per annum. If you cannot provide a BAS, you must provide business bank statements as evidence that your turnover in the 2018-19 or 2019‑20 financial year exceed $75,000.

Q. Are there limitations on what the funds can be spent on, if I am successful in accessing the Small Business Grant?

A. There are no limitations on what eligible small businesses can spend the funds on. It could include:

• • Financial, legal and other professional advice
  • Utilities and rent
  • Wages and salaries
  • Marketing and communications expenditure.
  • Other expenditure for activities relating to the planning, development, continuity and operation of the business

Q. Will I be eligible if my total Australian taxable payroll was more than $1.5 million in 2018-19, but now, due to impacts from the COVID pandemic is expected to be less than $1.5 million in 2019-20?

A. You can apply for the grant, if your expected payroll will be less than $1.5 million in 2019‑20.

Q. Do I need to include JobKeeper payments when calculating the payroll threshold ($1.5 million total Australian taxable payroll)?

A. No, JobKeeper payments should be excluded from the calculation of total Australian payroll.

Q. Am I eligible if my turnover has not yet decreased significantly, but I believe it will in the coming months?

A. If you have been approved for JobKeeper based on anticipated reduction in turnover, you can could be eligible for the Small Business Grant. You may still be required to provide evidence of your eligibility at a later date, in accordance with the grant Terms and Conditions

Q. Am I still able to apply for the grant, if I have already applied for / received a COVID-19 assistance grant from the Government of South Australia?

A. Yes, however the value of any other COVID-19 assistance payments from the Government of SA, will be deducted from the $10,000 grant.