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

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

A summary of the economic and financial support measures announced by the Commonwealth government and Northern Territory government in response to the public health lockdown restrictions occasioned by the August 2021 outbreak of COVID-19 in the Northern Territory.

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

by Practical Law Corporate
Published on 23 Aug 2021 • Australia
A summary of the economic and financial support measures announced by the Commonwealth government and Northern Territory government in response to the public health lockdown restrictions occasioned by the August 2021 outbreak of COVID-19 in the Northern Territory.
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The Commonwealth and Northern Territory (NT) governments have announced support packages to address the economic effects of the public health lockdown restrictions implemented in NT in August 2021 due to an outbreak of COVID-19.
The support packages for businesses include:
  • Payments of $1,000 to $3,000 for eligible sole traders and businesses.
  • Payments of $5,000 to $30,000 for certain eligible business impacted by the lack of international visitors and who have not benefitted from tourism vouchers.
  • Payments to small businesses and sole traders to provide immediate support during the lockdown period.
The COVID-19 Disaster Payment is also available for individuals who have lost at least eight hours of work during the lockdown period.

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

The federal government (Commonwealth Government) and the Norther Territory government (NT Government) have announced economic support packages in response to the public health lockdown implemented in the Northern Territory in 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.

Support packages for Northern Territory businesses

Visitation Reliant Support Program

The Visitation Reliant Support Program (Support Program) is available for tourism and hospitality businesses reliant on international and interstate visitation. Under the Support Program, eligible businesses and sole traders will receive:
  • A $3,000 payment for employing businesses.
  • A $1,000 payment for sole traders.
To be eligible, businesses and sole traders must:
  • Have an annual turnover of less than $10 million.
  • Demonstrate a 30% decrease in turnover as a result of the August 2021 lockdown, particularly relating to visitation.

Tourism Survival Fund

The Tourism Survival Fund (Fund) provides payments of between $5,000 and $30,000 to businesses and operators most impacted by the lack of international visitors and who have not benefitted from tourism vouchers. The Fund is available to the following sectors:
  • Touring.
  • Professional conference organisers.
  • Exhibition build companies.
  • Eligible attractions.
To be eligible for the Fund, businesses must:
  • Have an annual turnover less than $10 million.
  • Be able to demonstrate a 30% decrease in turnover, compared to the same period in 2019, as a result of the lockdown.

Territory Small Business Lockdown Payment Program

The Territory Small Business Lockdown Payment Program (Lockdown Payment Program) provides immediate financial support payments to certain eligible businesses during lockdown periods.
Details of the Lockdown Payment Program are available at Jobs First Plan: Territory Business Lockdown Payment Program.
To be eligible for the Lockdown Payment Program, a business must:
  • Be a Northern Territory enterprise.
  • Hold a valid Australian Business Number (ABN) as at the date of announcement of a lockdown.
  • Be located within a declared lockdown area.
  • Provide goods or services to the public wholly or substantially in the Northern Territory as at the date of announcement of a lockdown.
  • Be actively trading with an annual turnover of:
    • at least $75,000; and
    • less than $10 million.
  • Have fewer than 20 full-time equivalent employees.
  • Have had to temporarily cease or significantly reduce trading (defined as suffering a drop of 50% or more in turnover) as a direct result of a lockdown.
For more information, see the Commonwealth and NT Governments' joint media release.