2021 COVID-19 lockdown relief measures: Federal and Australian Capital Territory governments announce economic support packages

Practical Law ANZ Legal Update w-032-3124 (Approx. 7 pages)

2021 COVID-19 lockdown relief measures: Federal and Australian Capital Territory governments announce economic support packages

by Practical Law Corporate

2021 COVID-19 lockdown relief measures: Commonwealth and ACT governments announce economic support package

The federal government (Commonwealth Government) and the Australian Capital Territory government (ACT Government) have announced economic support packages in response to the public health lockdown implemented in the Australian Capital Territory on 13 August 2021 due to an outbreak of the 2019 novel coronavirus disease (COVID-19).

COVID-19 Disaster Payment

The COVID-19 Disaster Payment is a lump sum payment to help workers unable to earn income due to a COVID-19 lockdown, hotspot or period of restricted movement, and is subject to an eligibility test.

Details of the COVID-19 Disaster Payment scheme are available at Services Australia: COVID-19 Disaster Payment.

The details of the COVID-19 Disaster Payment are as follows:

Eligible workers will receive:
- $750 per week if they lose 20 hours or more of work; or
- $450 per week if they lose between 8 and less than 20 hours, or a full day of work.
The COVID-19 Disaster Payment will be available from Day 1 of any potential lockdown in the future, with claims made from Day 8 in arrears for the previous 7 days. A weekly payment will then be made for the duration of the hotspot declaration.
There will be no liquid assets test applied to eligibility for these payments and an individual does not need to run down personal annual leave.
Individuals who currently receive an income support payment will receive a weekly payment of $200, in addition to their existing payment, if they can demonstrate they have lost more than 8 hours of work and meet the other eligibility requirements for the COVID-19 Disaster Payment.

On 29 September 2021, the Commonwealth Government announced the phase out of the COVID-19 Disaster Payment.

The details of the COVID-19 Disaster Payment phase out, in line with the National Plan to Transition Australia's COVID-19 Response (National Plan), are as follows:

In line with Phase B of the National Plan, once a state or territory reaches 70% full vaccination rate of its population (16 years and older), the automatic renewal of the COVID-19 Disaster Payments will end. Instead, individuals will need to reapply each week to confirm their eligibility.
In line with Phase C of the National Plan, once a state or territory reaches 80% full vaccination rate of its population (16 years and older), the COVID-19 Disaster Payment will step down over a period of two weeks before ending. During these two weeks, the COVID-19 Disaster Payment will be as follows:
- for the first week, $450 for individuals who have lost more than eight hours of work and $100 for individuals who receive income support; and
- for the second week, $320 for individuals who have lost more than eight hours of work and payments for individuals who receive income support will end.

For more information, see the Commonwealth Government's 29 September 2021 media release.

On 8 October 2021, the Australian Capital Territory reached 70% full vaccination rate of its eligible population. As a result, and in line with Phase B of the National Plan, automatic renewal of the COVD-19 Disaster Payment ended on 7 October 2021. For more information, see the Services Australia website.

Support for ACT businesses

ACT COVID-19 Business Support Grant

The ACT COVID-19 Business Support Grant (Business Support Grant) will provide grants to certain eligible businesses whose turnover has declined by 30% or more as a result of the public health restrictions due to the August 2021 COVID-19 outbreak. The support includes:

$10,000 grants for employing businesses.
$4,000 grants for non-employing businesses.

To be eligible for the Business Support Grant, businesses must:

Be registered in the Australian Capital Territory (ACT).
Be able to demonstrate the business' primary operation is in ACT.
Have an annual turnover of more than $75,000.
Be registered for Goods and Services Tax (GST).
Have a total payroll of less than $10 million.
Provide evidence of a 30% reduction in turnover.

On 15 September 2021, the Commonwealth and ACT governments announced the following extensions of the Business Support Grant for eligible businesses:

Additional payments for businesses in industries still significantly impacted by the health restrictions, including payments of:
- $10,000 for employing businesses; and
- $3,750 for non-employing businesses.
Additional payments for larger employing businesses, including payments of:
- $10,000 for businesses with a turnover greater than $2 million and less than $5 million;
- $20,000 for businesses with a turnover greater than $5 million and less than $10 million; and
- $30,000 for businesses with a turnover greater than $10 million.

On 30 September 2021, the Commonwealth and ACT governments announced further extensions of the Business Support Grant for eligible businesses at the same rates as the 15 September 2021 extension payments.

COVID‑19 Tourism, Accommodation Provider, Arts and Events and Hospitality Grant

The COVID‑19 Tourism, Accommodation Provider, Arts and Events and Hospitality Grant (Tourism Grant) will provide grants to the tourism, accommodation provider, arts and events, and hospitality industries.

The Tourism Grant includes grants of:

$1,000 for non-employing businesses.
$3,000 for employing businesses with a turnover less than $2 million.
$10,000 for employing businesses with a turnover greater than $2 million and less than $5 million.
$20,000 for employing businesses with a turnover greater than $5 million.

The same eligibility criteria will be applied to the Tourism Grant as applies to the Business Support Grant (see ACT COVID-19 Business Support Grant).

On 30 September 2021, the Commonwealth and ACT Governments announced the Tourism Grant would be expanded.

The expanded Tourism Grant includes grants of:

$5,000 for non-employing businesses.
$8,000 for employing businesses with turnover less than $2 million.
$15,000 for employing businesses with turnover greater than $2 million and less than $5 million.
$25,000 for employing businesses with turnover greater than $5 million.

ACT businesses in the fitness and sport industry will now also be eligible to apply for the expanded Tourism Grant.

The eligibility criteria for the expanded Tourism Grant will remain the same as the eligibility criteria for the Business Support Grant (see ACT COVID-19 Business Support Grant).

Small Business Hardship Scheme

The Small Business Hardship Scheme allows eligible ACT small businesses with a 30% loss in revenue to apply for credits on the cost of eligible fees and charges of up to $10,000 per Australian business number (ABN). Small businesses are defined as businesses with a turnover between $30,000 and $10 million per annum.

For more information, see the Commonwealth and ACT governments' joint media releases:

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