Expansion of Level 2 COVID-19 Business Assistance Package – Western Australia
In a welcome response to concerns from the business community, more businesses impacted by recent COVID-19 restrictions will now be eligible for these hardship grants. Two tiers of grants will now be available to businesses that experienced a decrease in turnover for a consecutive two-week period between 1 January and 30 April 2022:
- A revised tier for businesses that experienced a decline in business turnover of at least 40% (reduced from the original 50% decline); and
- A new tier for businesses that experienced a decline in business turnover of at least 30%.
The turnover decline should be measured based on “a reasonable comparative period”. This is usually the corresponding 2 week period in the prior financial year, however an alternative period of 2 consecutive weeks within 1 January and 31 December 2021 may be used where the prior year period is not appropriate to demonstrate prior business performance.
Small Business Hardship Grants Program
Eligibility Requirements – In addition to the decline in turnover requirements above, businesses must also satisfy the following:
- Have a valid and active Australian Business Number (ABN);
- Currently trading in Western Australia;
- Annual Turnover of more than $50,000, excluding GST;
- Adhere to disclosure and documentation requirements of the program; and
- Have an Australia-wide annual payroll of less than $4 million
An alternative period in 2021 may be used if the business did not operate at that time or it provides an inaccurate representation of the business’ financial situation.
Grants available (tiered per employee number)
The following points have recently been clarified by the small business development corporation:
- Any 2 consecutive week period up to 31 December 2021 may be used for comparative purposes if the same period in the prior year is not appropriate.
- Businesses commenced after 31 December 2021 cannot avail of the grant.
- Businesses under new ownership but which were in operation prior to 31 December 2021 may be eligible.
Applications for the Grant Program are open now until 30 June 2022 via the Small Business Development Corporation.
Hospitality Payroll Tax Relief
The decline in turnover test for hospitality businesses to receive a three-month payroll tax waiver has been reduced to 40% from 50%.
Businesses must have payrolls of between $4 million and $20 million and demonstrate the decline in turnover over any four week period between 1 January 2022 and 30 April 2022, comparable to the same period last year.