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With various states experiencing extended lockdown restrictions throughout Australia into August 2021, there have been some additional support payments announcements by the federal and state governments. The following is what is known as of 12 August 2021.

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TAX FREE COVID RELIEF

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The federal government has passed legislation making the following support payments tax-free for individuals and businesses. 

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• (To individuals) COVID-19 Disaster Payments:  payments that have been made from 3 June 2021 

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• (To businesses) Payments to support businesses: certain grant payments to be tax-free to entities with an annual aggregated turnover of $50 million or less

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Individuals eligible for the COVID-19 Disaster Payments could receive $750 a week (lose 20 or more hours of work a week) or $450 a week (lose between eight and 20 hours of work per week).

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However, as the tax free status has been backdated to 03 June 2021, individuals will need to lodge an amended tax return if,

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• they have already lodged their 2020-21 tax return and

• included the COVID-19 Disaster Payments as assessable income. 

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Unfortunately, the ATO and Services Australia’s computer records do not talk to each other and assessment notices will not be automatically amended for tax returns already lodged.

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SUPPORT FOR BUSINESSES IN VICTORIA

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Businesses in Victoria who are continuing to struggle from the further lockdown restrictions as announced during August 2021 will be provided additional financial support from the state government. Here is what is known as per the update date as listed on this page.

 

SMALL BUSINESS COVID HARDSHIP FUND

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A new fund has been established to support employing and non-employing small businesses (including sole traders) who have not been eligible for other existing business grants.

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Eligibility

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• Have a trading address within Victoria

• Businesses which have not been eligible for any other Victorian government support funds after 27 May 2021

• Experienced a greater than 70% reduction in turnover over a minimum 2-week period between 27 May and 10 September 2021 to a benchmark period during 27 May and 10 September 2019

• Have an ABN and are registered for GST at 28 July 2021

• [Employing business only] Have an annual Victorian payroll of less than $10 million during 2019-20 

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Amounts

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• Grants of $10,000

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Applications are open now until 11:59 pm on 10 September 2021.

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BUSINESS COSTS ASSISTANCE PROGRAM (Round three)

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More than 90,000 businesses will be automatically paid a Business Costs Assistance Program Round Three grant of $2,800.

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Further information is available from here. 

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BUSINESS CONTINUITY FUND

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This grant will be provided to businesses across 24 sectors affected by the capacity limits, including gyms, cafes, restaurants and hairdressers. Extra support will be provided for businesses in the CBD who are also affected from the reduced foot traffic.

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Eligibility

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• Must have been eligible for the previous Business Cost Assistance Program Round 2

• Operate in one of the 24 eligible sectors

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Amounts

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• $5,000 per business

• Extra $2,000 for those in the CBD (payments to be made separately)

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Support payments if not already provided are expected shortly. Further information is available from here. 

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LICENCED HOSPITALITY VENUE FUND

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A further grant will be provided to licensed venues that serve food and alcohol.

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Eligibility

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• Must have been eligible for the Licenced Hospitality Venue Fund 2021 (from the May/June 2021 lockdown)

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Amounts

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• Up to $20,000 per business (depending on size of venue)

• Extra $2,000 for those in the CBD

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Support payments if not already provided are expected shortly. Further information is available from here.

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COMMERCIAL TENANCY RELIEF SCHEME

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The Victorian Government has introduced a new legislation to provide rent relief to commercial tenants from 28 July 2021 who have experienced a reduction in turnover of more than 30 per cent.

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Eligibility

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• Businesses with an annual turnover of less than $50 million

• Experienced a greater than 30% reduction in revenue

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Assistance provided

 

• Commercial landlords will be required to provide rent relief in line with the tenant’s decline in turnover. 

• Rent relief for eligible tenants will be calculated by comparing the turnover for the April ~ June quarter of the 2020/21 financial year with turnover from the April ~ June quarter of 2018/19 (special arrangements will apply for businesses not commenced as of June 2019)

• Landlords will not be able to lock out or evict tenants without a formal process

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For example, a tenant with a turnover of only 40% of pre-COVID turnover,

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• landlords can only bill for 40% of rent

• at least half of the rent that is left unpaid must be permanently waived 

• the rest to be deferred for later payment

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Tenants should negotiate directly with landlords but the Victorian Small Business Commission (vsbc.vic.gov.au) can offer mediations if an agreement cannot be reached.

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Further information is available from here.

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LANDLORD HARDSHIP FUND

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Landlords required to waive rent under the Commercial Tenancy Relief Scheme may be eligible for a hardship fund.

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Eligibility

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• Landlords providing rental waiver under the Victoria’s Commercial Tenancy Relief Scheme

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Amounts

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• Land tax relief of up to 25 per cent,

• Small landlords who can show acute hardship will also be eligible to apply for payments from the $20 million hardship fund

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At this stage, no further details have been released but some information is available from here. 

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(Updated 13 August 2021)

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Disclaimer: 

Information based on facts we have summarised to the above updated date. We have not considered your personal circumstances and should you wish to consider it, please seek professional advice.