2021 COVID-19 lockdown relief measures: Federal and Tasmanian governments announce economic support packages | Practical Law

2021 COVID-19 lockdown relief measures: Federal and Tasmanian governments announce economic support packages | Practical Law

A summary of the financial support measures announced by the Commonwealth government and Tasmanian government in response to the public health restrictions in relation to COVID-19.

2021 COVID-19 lockdown relief measures: Federal and Tasmanian governments announce economic support packages

by Practical Law Corporate
Published on 19 Oct 2021 • Australia
A summary of the financial support measures announced by the Commonwealth government and Tasmanian government in response to the public health restrictions in relation to COVID-19.
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The Commonwealth and Tasmanian governments have announced support packages for businesses to address the economic effects of the public health restrictions due to COVID-19.
The support packages include:
  • Grants of between $2,000 and $10,000 for businesses that have suffered a 30% decline in turnover, and targets businesses that operate in certain sectors.
  • Grants up to $50,000 based on annual turnover for eligible businesses.
  • Payroll tax relief for tourism and hospitality industry businesses that have experienced a 30% reduction in turnover in the September 2021 quarter.
  • Vehicle registration and passenger transport accreditation fees for renewal notices received between 1 July and 31 December 2021 will be waived for certain vehicles.
  • License fees payable to Parks & Wildlife will be waived.
  • Payroll tax waivers and grants.

2021 COVID-19 lockdown relief measures: Commonwealth and Tasmanian governments announce economic support packages

Border Closure Critical Grant program

The federal government (Commonwealth Government) and Tasmanian government (Tas Government) have announced an economic support package in response to public health restrictions due to outbreaks of the 2019 novel coronavirus disease (COVID-19).
The Border Closure Critical Grant program provides grants of between $2,000 and $10,000 for businesses that have suffered a 30% decline in turnover, and targets business operating in certain sectors, including:
  • Tourism.
  • Hospitality.
  • Arts and events.
  • Seafood.
  • Transport.
  • Other sectors that have been impacted directly by reduced interstate visitation.
The grants are non-competitive and will be assessed in order of receipt. The support package commenced on 17 August 2021.
For more information, see the joint Commonwealth and Tas governments' 13 August 2021 media release.

Expanded Border Closure Critical Grant program

On 14 September 2021, the Commonwealth and Tas governments announced the Border Closure Critical Grant program (Expanded Boarder Closure Grant) will be expanded.
The Expanded Border Closure Grant includes:
  • Grants of up to $50,000 based on annual turnover for eligible businesses.
  • Payroll tax relief for tourism and hospitality industry businesses that have experienced a 30% reduction in turnover in the September 2021 quarter.
  • Vehicle registration and passenger transport accreditation fees for renewal notices received between 1 July and 31 December 2021 will be waived for certain vehicles including:
    • taxis;
    • luxury hire cars;
    • tour operator buses; and
    • rental car operators.
  • License fees payable to Parks & Wildlife will be waived.
For more information, see the joint Commonwealth and Tas governments' 14 September 2021 media release.

Payroll tax waiver and grant

The Tas Government announced that it will provide a waiver of payroll taxes for wages paid or payable to eligible employees between 1 July 2021 and 31 December 2021. To be eligible, employers must:
  • Have at least one eligible employee employed at the relevant business.
  • Show that turnover for the relevant business for the September quarter 2021 has fallen by 30% or more when compared with the turnover for the September quarter in either 2019 or 2020.
  • Meet one of the following for the 2020-21 financial year:
    • not grouped and only paid wages in Tasmania; or
    • not grouped and the Tasmanian taxable wages paid or payable by the employer comprise 50% or more of the employer’s total Australian wages; or
    • grouped and the Tasmanian taxable wages paid or payable by the group comprise 50% or more of the group’s Australian wages.
  • Have a payroll tax liability for wages paid or payable to eligible employees.
Eligible employees are employees who solely or predominantly work in one or more of the following industries:
  • Tourism.
  • Hospitality.
  • An ancillary industry.
Employers who are eligible for the payroll tax waiver will be eligible for a grant from 1 January 2021 to 30 June 2021. The grant amount is calculated by multiplying the total payroll tax waiver for the September quarter 2021 by a factor of 2.5.
For more information, see Guideline: Payroll tax waiver and grant: Tourism, Hospitality and Ancillary industries.