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

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

A summary of the economic and financial support measures announced by the Commonwealth government and the Queensland government in response to the extended public health restrictions implemented in Queensland due to outbreaks of COVID-19 since July 2021.

2021 COVID-19 lockdown relief measures: Federal and QLD 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 Queensland government in response to the extended public health restrictions implemented in Queensland due to outbreaks of COVID-19 since July 2021.
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The Commonwealth and Queensland (Qld) governments have announced support packages for individuals and businesses to address the economic effects of the public health restrictions implemented in Qld due to outbreaks of COVID-19 since July 2021. The support packages include:
  • COVID-19 Disaster Payment for individuals who have lost at least eight hours of work during the lockdown period.
  • Support payments of $5,000 for eligible businesses.
  • $1,000 one-off grants for eligible non-employing sole traders.
  • $5,000 to $25,000 one-off, top-up grants for eligible business.
  • Grants for eligible businesses affected by the closure of the Queensland-New South Wales border in the event of an extended border closure.
  • Additional support for businesses affected by the closure of the Queensland-New South Wales border.
  • Additional grants for employing businesses across Qld that have experienced a reduction in turnover of at least 70% for at least seven consecutive days between 1 July and 30 September 2021.
  • Grants of up to $4 million to ensure that major tourism enterprises remain viable and are ready to scale up as visitation return.

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

The federal government (Commonwealth Government) and the Queensland government (Qld Government) have announced economic support packages in response to the public health restrictions implemented in Queensland due to outbreaks of the 2019 novel coronavirus disease (COVID-19) since July 2021.

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 state public health order, including a lockdown, hotspot or period of restricted movement, and is subject to an eligibility test.
The details of the expanded 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.
More 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.

Support for Queensland Businesses

2021 COVID-19 Business Support Grant program

On 2 August 2021, the Qld Government announced that it will provide $5,000 payments to businesses affected by the current COVID-19 lockdown in South East Queensland through the 2021 COVID-19 Business Support Grant program (Business Support Grant).
The Business Support Grant is available to:
  • Eligible small and medium businesses throughout Queensland that have experienced at least a 30% reduction in turnover as a result of the 31 July 2021 lockdown.
  • Small and medium businesses are defined as businesses that have:
    • a turnover of more than $75,000 per annum; and
    • an annual payroll in Queensland of up to $10 million.
  • Eligible large businesses in the hospitality and tourism section operating in the 11 Local Government Areas (LGAs) in South East Queensland subject to the current lockdown restrictions.
Applications for the 2021 COVID-19 Business Support Grants opened on 16 August 2021 and will close on 16 November 2021.
For more information, see the Qld Government media release and Business Queensland: 2021 COVID-19 Business Support grants for lockdown-impacted businesses in Queensland.

Further support for Queensland businesses

On 13 August 2021, the Commonwealth and Qld governments jointly announced additional support for businesses across Queensland that have had a decline in turnover of more than 30%, including:
  • A $1,000 one-off grant to non-employing sole traders.
  • Tiered payments based on payroll size for all businesses:
    • a $5,000 one-off, top-up grant to small business with payroll of less than $1.3 million;
    • a $10,000 one-off, top-up grant to medium sized business with payroll between $1.3 million and $10 million; and
    • a $25,000 one-off, top-up grant to large sized tourism and hospitality focused businesses with payroll of greater than $10 million.
For further information, see the Commonwealth and Qld governments' 13 August 2021 joint media release.

COVID-19 Border Business Zone Hardship Grants

The COVID-19 Border Business Zone Hardship Grants will provide grants to businesses in border zones affected by the closure of the Queensland-New South Wales border in the event of an extended border closure, including:
  • $5,000 for employing businesses.
  • $1,000 for non-employing sole traders.
To be eligible, businesses must:
The areas in the border business zone are:
  • Coolangatta.
  • Currumbin–Tugun.
  • Currumbin Waters.
  • Queensland border towns of:
    • Wallangarra;
    • Goondiwindi; and
    • Mungindi.
For further information, see the Commonwealth and Qld governments' 14 September 2021 joint media release and Business Queensland: Support for Queensland border zone businesses.

Other COVID-19 border business zone support

The Qld government will also provide funding for:
  • Mental health support for affected business owners and their families.
  • A $1 million boost to the Play Money campaign run by the City of Gold Coast Council and Destination Gold Coast, to help Gold Coast residents support local businesses.
  • Financial support for marketing campaigns such as 'Essentially Cooly'.
For further information, see the Commonwealth and Qld governments' 14 September 2021 joint media release and Business Queensland: Support for Queensland border zone businesses.

Tourism and Hospitality Sector Hardship program

First Round
The Tourism and Hospitality Sector Hardship program will provide one-off grants to employing businesses across Queensland that have experienced a reduction in turnover of at least 70% for at least seven consecutive days between 1 July and 30 September 2021, including:
  • $15,000 to small businesses.
  • $25,000 to medium businesses.
  • $50,000 to large businesses.
For further information, see the Commonwealth and Qld governments' 14 September 2021 joint media release.
Second Round
On 25 September 2021, the Commonwealth and Qld governments' jointly announced a second round of grants will be available to employing businesses that received an initial grant from the Tourism and Hospitality Sector Hardship program. Major tourism enterprises that receive an Iconic Tourism Grant are not eligible to receive a second grant (see Iconic Tourism Grants).
For more information, see the Commonwealth and Qld governments' 25 September 2021 joint media release.

Iconic Tourism Grants

The Iconic Tourism Grants will provide grants of up to $4 million to ensure that major tourism enterprises remain viable and are ready to scale up as visitation returns.
To be eligible for the Iconic Tourism Grants, businesses must:
  • Be a key driver of significant interstate or international tourism.
  • Be a major employer.
  • Be a nationally significant tourism operator and attraction, including:
    • major theme parks; and
    • major reef tourism operators.
  • Demonstrate a 50% reduction in turnover and visitation over the three-month period from 1 July to 30 September 2021 compared to pre-COVID-19.
  • Maintain their staff levels through the assistance period, to the end of 2021.
For more information, see the Commonwealth and Qld governments' 25 September 2021 joint media release.