Small Business Continuity Grant - Round 2
UPDATE 9 SEPTEMBER:
The Small Business Continuity Grant was due to close on 7 September, however it has been extended to Friday 2 October, or until all funds are allocated whichever occurs first.
As of Friday 4th September, 447 grants had been allocated as part of the $2 million program, leaving funding available to support a further 2219 applications.
- The program opened at 12 noon on Monday 10 August 2020 and will close at 12 noon on Friday 2 October 2020 or when the funding has been fully allocated, whichever occurs first.
- There will be a maximum of 2,666 grants allocated at $750 each.
- The grants will be taxable income to successful applicants.
- Eligible businesses:
- Employed fewer than 20 Full Time Equivalents (FTEs) at 29 February 2020; AND
- Had an active ABN as at 29 February 2020 which continues to be active; AND
- Have registered business address in Tasmania, according to ABN records; AND
- Have a business bank account in the same name as the applicant business; AND
- Predominantly operate in Tasmania and business owners reside in Tasmania; AND
- Have an annual turnover of more than $50,000 (excluding GST) for 2019 or 2020 financial year OR for recently established businesses, estimate that annual turnover will exceed $50,000 (excluding GST) in the 2021 financial year. Supporting documentation must be provided, otherwise the application will be declined.
- Ineligible businesses:
- Those that have received a grant under Round 1 of this program;
- Not for profit organisations, incorporated associations and charities, unless trading or financial activities are a substantial part of the organisation activities;
- Any business that is under External Administration or bankruptcy;
- Accounting and financial advisor businesses;
- Investment entities (such as unit trusts) for residential and commercial property investment/rentals;
- Any government body, government agency and government business enterprises.
IMPORTANT: Only one grant is permitted per ABN. Where a business owner has multiple ABNs for multiple businesses, they can apply for maximum two grants under this Program.
Expenditure must be used for the purpose of receiving assistance in relation to business continuity planning or advice relating to:
- Maintaining solvency
- Cashflow projections
- Managing financial risk
- Diversifying/pivoting the business enterprise
- Adding value to products and services provided by the business enterprise.
Business continuity planning assistance, or business or financial advice, must be provided by a suitably qualified specialist or consultant, such as an accountant or financial adviser with minimum qualifications such as Chartered Accountant (CA), Certified Practising Accountant (CPA) or Member Institute of Public Accountants (MIPA).
As a Chartered Accountants firm, Ruddicks is ideally placed to provide you with the business continuity advice covered by the grant.
Evidence of expenditure must be retained for a minimum of 18 months, and be available to be presented on request.
Applicants should complete and lodge an application online via the Business Tasmania website. Applicants who are unable to apply online via SmartyGrants can access a manual application by calling Business Tasmania on 1800 440 026.
The grants will be issued in the order of application of receipt, i.e. first in, best dressed. Once all 2,666 grants are issued, there will be no more funding. The Department of State Growth expects that there will be a high volume of applications received. The time taken to assess applications will be dependent on the actual number of applications received.
Please note that the grant program guidelines explicitly state that accountants and financial advisors are not permitted to complete and/or submit applications on behalf of their clients, however we would be happy to assist you with the application form and with compiling the required substantiation documents (e.g. the proof of the business having met the annual turnover criteria). Please contact your Ruddicks adviser as soon as possible to ensure that there is sufficient time to prepare the necessary financial reports.
Business Tasmania page (including links to the grant guidelines and an FAQ page)
As always, the Ruddicks partners and staff are here to help with any questions you may have about this grant program, business continuity planning or any taxation matters.
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The content of this newsletter is general in nature. It does not constitute specific advice and readers are encouraged to consult their Ruddicks adviser on any matters of interest. Ruddicks accepts no liability for errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. This information is current as at 11 August 2020, and was published around that time. Ruddicks particularly accepts no obligation or responsibility for updating this publication for events, including changes to the law, the Australian Taxation Office’s interpretation of the law, or Government announcements arising after that time.
Any advice provided is not ‘financial product advice’ as defined by the Corporations Act. Ruddicks is not licensed to provide financial product advice and taxation is only one of the matters that you need to consider when making a decision on a financial product. You should consider seeking advice from an Australian Financial Services licensee before making any decisions in relation to a financial product. © Ruddicks 2020