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

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

A summary of the economic and financial support measures announced by the Commonwealth government and the SA government in response to the public health restrictions occasioned by the July 2021 outbreak of COVID-19 in South Australia.

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

by Practical Law Corporate
Published on 05 Oct 2021 • Australia
A summary of the economic and financial support measures announced by the Commonwealth government and the SA government in response to the public health restrictions occasioned by the July 2021 outbreak of COVID-19 in South Australia.
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The Commonwealth and South Australian (SA) governments have announced support packages for individuals and businesses to address the economic effects of the public health lockdown and ongoing public health restrictions implemented in SA since 20 July 2021 due to an outbreak of COVID-19. The support packages include:
  • COVID-19 Disaster Payment for individuals who have lost at least eight hours of work during the lockdown period.
  • Emergency cash grants of $1,000 to $3,000 for eligible small, medium-sized, and non-employing businesses that were forced to close or suffered a significant loss of income due to the July 2021 lockdown.
  • Grants of an additional $1,000 to $3,000 for small, medium-sized, and non-employing businesses in eligible industry sectors that have experienced a decline in turnover of 30 per cent or more over a two-week period as a result of the COVID-19 trading restrictions introduced from 28 July 2021.
  • Grants of an additional $1,000 for eligible employing and non-employing businesses with a commercial premise in the Adelaide CBD.
  • Grants of $1,000 to $20,000 for eligible employing and non-employing businesses in hospitality, tourism, and other sectors.
  • Grants of $2,000 to $6,000 for certain employing and non-employing businesses that have not been eligible for other business support since July 2021.
  • Grants of up to $100,000 for eligible events that were cancelled or postponed due to public health restrictions.

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

The federal government (Commonwealth Government) and the South Australian government (SA Government) have announced economic support packages in response to the public health lockdown and ongoing public health restrictions implemented in South Australia since July 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. The COVID-19 Disaster Payment is available when a state public health order due to a Commonwealth declared hotspot imposes COVID-19 restrictions lasting for more than seven days, and is subject to an eligibility test.
The details of the COVID-19 Disaster Payment as it applies to South Australia for the July 2021 lockdown are as follows:
  • The Commonwealth government will provide income support for those who work or live in the areas declared as a Commonwealth Hotspot by the Commonwealth Chief Medical Officer.
  • Individuals will be eligible for the expanded COVID-19 Disaster Payment if, during the period of the lockdown, they have lost:
    • between eight and less than 20 hours of work, for a payment of $375; and
    • 20 or more hours of work, for a payment of $600.
    There will be no liquid assets test applied to eligibility for these payments.
  • Payments will be made in arrears on application to Services Australia from Wednesday, 28 July 2021.
  • The SA Government will provide fully funded income support payments of up to $600 per week for eligible workers in regional South Australia who live or work outside of the areas declared a Commonwealth Hotspot.
See the Commonwealth Government's 20 July 2021 media release and the SA Government's media release for more information. Information about the COVID-19 Disaster Payment scheme is available at Services Australia: 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.

Business Support Package

On 21 July 2021, the SA Government announced it would provide cash grants for small and medium-sized businesses that were forced to close or suffered a significant loss of income due to the July 2021 lockdown.
Under the Business Support Package, eligible businesses will be offered a $3,000 emergency cash grant. The Business Support Package also includes a new $1,000 cash grant for eligible small businesses who do not employ staff, for example, non-employing sole traders.
  • To be eligible for the $3,000 emergency cash grant, a business must, as at 12:01am on Tuesday, 20 July 2021:
  • Be located within South Australia.
  • Have an annual turnover of $75,000 or more in 2020-21 or 2019-20 and be registered for GST.
  • Employ people in South Australia.
  • Have an Australia-wide payroll of less than $10 million in 2019-20.
  • Have a valid Australian Business Number (ABN).
  • Experienced at least a 30 per cent reduction (compared to the week prior) in turnover due to the restricted trading conditions.
To be eligible for the $1,000 emergency cash grant, a non-employing business must meet the criteria listed above excluding the requirement to employ people.
Applications for the emergency cash grants can be made via myGov from 28 July 2021.
See the SA Government's media release for more information.

COVID-19 Additional Business Support Grant

On 9 August 2021, the Commonwealth and SA Governments jointly announced further financial support through the South Australian COVID-19 Additional Business Support Grant package (Business Support Grant) for small and medium business impacted by the ongoing density and trading restrictions in South Australia as a result of the July 2021 lockdown.
The Business Support Grant includes:
  • For businesses in eligible industry sectors that have experienced a decline in turnover of 30 per cent or more over a two-week period as a result of the COVID-19 trading restrictions introduced from 28 July 2021:
    • $3,000 cash grants for employing businesses; and
    • $1,000 for non-employing businesses (for example, sole traders)
  • An additional Central Business District (CBD) grant of $1,000 will be available for eligible employing and non-employing businesses with a commercial premise in the Adelaide CBD (postcode 5000), in recognition of the increased impact on city businesses as a result of people working from home.
Applications for funding open on 13 August 2021 and close on 17 October 2021.
For more information, see the Commonwealth and SA Governments' 9 August 2021 joint media release.

COVID-19 Tourism and Hospitality Support Grant

The COVID-19 Tourism and Hospitality Support Grant package (Tourism and Hospitality Grant) will provide grants for businesses in eligible tourism, hospitality and other sectors that have already received the Business Support Grant (see South Australian COVID-19 Additional Business Support Grant).
The Tourism and Hospitality Grant includes:
  • Grants of up to $20,000 for employing businesses.
  • Grants of $1,000 for non-employing businesses.
For more information, see the Commonwealth and SA Governments' 13 September 2021 joint media release.

COVID-19 Business Hardship Grant

The COVID-19 Business Hardship Grant package (Business Hardship Grant) will provide grants to business who have experiences a 50% reduction in turnover over an eligible period and have not been eligible for previous business grant support since July 2021.
The Business Hardship Grant includes:
  • Grants of $6,000 for employing businesses with an annual payroll of below $10 million.
  • Grants of $2,000 for non-employing businesses.
For more information, see the Commonwealth and SA Governments' 13 September 2021 joint media release.

Major Events Support Grant

The Major Events Support Grants will provide funding up to $100,000 for eligible events that were cancelled or postponed due to public health restrictions.
For more information, see the Commonwealth and SA Governments' joint media releases: