ACT businesses receive COVID-19 support grants from governments
The Australian Government and the ACT Government have provided a jointly funded grants package that will help support small and medium Territory businesses that have been impacted by the ACT’s current lockdown measures.
The ACT COVID-19 Business Support Grant is expected to deliver $3,000 for employing businesses and $1,000 for non-employing businesses whose turnover has declined by 30% or more due to the COVID-19 health restrictions.
The support grants package is split between the national and state governments on a 50/50 basis. The ACT Government will be in charge of administering the program to the public.
Similar to the arrangements for businesses in jurisdictions impacted by COVID-19 lockdowns, local businesses that have experienced at least a 30 per cent reduction in turnover in the week defined as Friday 13 August – Friday 20 August 2021 (compared to the prior 7-day period) due to restricted trading conditions caused by the lockdown are eligible for the grants package.
Federal Treasurer Josh Frydenberg said the business support grants add to the $2.1 billion the Australian Government provided to households and businesses in the ACT.
“The ACT is facing its most challenging period this year, but it has shown remarkable resilience throughout the pandemic,” Treasurer Frydenberg said.
“This package will help to keep businesses in business and people in jobs. As we have done so throughout this crisis, we will continue to work with the ACT Government to ensure the ACT economy recovers from the impact of COVID-19.”
ACT Chief Minister Andrew Barr welcomed the Australian Government support, stating that the ACT lockdown was coming off the back of a period of slower economic activity due to the outbreaks in Sydney. He also stated that while local businesses supported the ACT Government’s efforts to respond to the pandemic, it came at the cost of their livelihood.
“We want to protect jobs during this period, and it was important that the ACT and the Commonwealth were able to come together quickly and have this package ready for businesses that may be worried about their future as a result of this lockdown,” Chief Minister Barr said.
“Should the lockdown in the ACT be extended beyond this seven day period, further jointly funded support programs will be considered.”
The ACT Government will also open a COVID-19 Small Business Hardship Scheme. Under this scheme, eligible ACT businesses can apply for credits on the cost of eligible fees and charges of up to $10,000 (inclusive of GST) per ABN.
This program will provide credits for payroll tax, utilities, rates and certain business licences for small to medium businesses that can demonstrate a 30%revenue loss in revenue. Small businesses with a turnover between $30,000 and $10 million per annum can also apply under this program.
SOURCE: ACT GOVERNMENT MEDIA RELEASE