Aug 26, 20215 min read

What you need to know about the Business Support Grant - Part 2 - Non-employing Businesses

Updated: Mar 29, 2022

The Solution In team has summarised the guidelines of the ACT Governments recently announced COVID-19 Business Support Grant so that you can see what you need to know about the program. If you need assistance with your application, you can book an appointment with Solution In by calling us on 0405 012 345 or book an appointment by clicking the button below. Solution In can talk you through the submission process and provide additional advice regarding the scheme. *

*Please Note: That consultation fees apply

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The ACT Government has recently opened applications for two COVID-19 Business Support Grant Program. The government is offering two Business Support Grants, one for employing businesses which grants up to $10,000 and one for non-employing businesses with grants up to $4,000. The purpose of this program is to provide short term support for both small and medium businesses primarily operating within the ACT whose turnover has significantly declined as a result of the public health restrictions. A copy of the complete programs guidelines is attached at the end of this article.

This article refers to Non-Employing Businesses, if you want to learn more information regarding employing businesses please follow the button below to view our other blog post.

Information for Employing Businesses

Non Employing Businesses

Funding Considerations

Eligible businesses that had turnover decline by 30% or more as a result of the COVID-19 restrictions could receive support up to $7,500 [UPDATED] over the three-week lockdown period (this timeframe may be extended).

Applications can be submitted by businesses at anytime and this application will only need to be made once.

Eligibility Requirements

Who is eligible to apply?

To be eligible for this Grant, businesses must meet the following criteria:

have a valid and active ABN as recorded on the Australian Business Register and be registered for GST on or before April 2021;
be able to demonstrate primary operation in the ACT as at 1 April 2021;
not employ* people in the business as at 1 April 2021
have an annual turnover of more than $75,000 (excluding GST) in either the 2019-20 or 2020-21 financial year; and
have experienced at least a 30 per cent reduction in revenue due to restricted trading conditions, to be assessed by comparing a consecutive seven-day period in the declared lockdown (between Friday 13 August and Thursday 2 September), with a consecutive 7-day period in April 2021 to August 2021 for which comparable business activity would have occurred.

*To be considered an employee, staff must be under the control of the business, receive regular PAYG salary or wages, and have Pay As You Go Withholding amounts as well as superannuation paid by the employer. Individuals who may have been considered “Eligible Business Participants” in the JobKeeper program https://www.ato.gov.au/General/JobKeeper-Payment/Partnerships,-trusts-and-companies/are not considered employees for the purpose of this Program.

Specifically, an owner, partner, director or shareholder in a company is not considered to be an employee for the purpose of this grant. A beneficiary of a trust is also not considered to be an employee for the purpose of this grant.

Who is not eligible to apply?

The following businesses and entities are not eligible to apply for a Grant:

a. government Business Entities (either Australian or Foreign);

b. industry associations or groups (membership or non-membership);

c. businesses with an annual payroll of greater than $10,000,000;

d. business with annual turnover of less than $75,000;

e. employing businesses;

f. entities that primarily earn passive income (rents, interest, or dividends);

g. companies in liquidation or provisional liquidation, administration or under any scheme of arrangement with its creditors;

h. any business that has received a comparable payment from another State or Territory Government.

i. a business that is, or notice has been given that it will be, placed under external administration;

j. there is a petition for bankruptcy or to wind up or deregister a company or business;

k. a business that is or becomes deregistered or unregistered (including cancellation or lapse in registration or any relevant permit); and

l. unincorporated associations.

Application process

Business eligibility

Applications including all support material, must be made through SmartyGrants.

Business must attest that they meet the eligibility criteria at the time of application and are continuing to trade per Section 3, Eligibility Requirements.
Businesses must retain evidence for at least two years for future checks.

Applicants must provide:

The ABN for the business, used to confirm business registration.
For businesses not registered in the ACT, proof that the business’ primary operation is in the ACT.
A Business Activity Statement (BAS), Australian income tax return, Notice of Assessment or other documentation demonstrating annual (or annualised) turnover of more than $75,000 (excluding GST) in either 2019-20 or 2020-21 and total Australian payroll.
Evidence to demonstrate 30 per cent reduction in turnover revenue in a consecutive seven-day period in the declared lockdown (between Friday 13 August and Thursday 2 September), compared to a prior consecutive 7-day period in April 2021 to August 2021, due to restricted trading conditions.
Evidence for the purpose of section 4.2(4) may include, but is not limited to:

a. extracts from accounting software of turnover comparison data for the comparable week to the assessment period.

b. Emails or texts to or from clients or suppliers detailing cancelled or postponed orders or appointments;

c. Receipts for refunds provided;

d. Invoices or delivery dockets;

e. Appointment/scheduling platform, demonstrating cancelled appointments or bookings; and / or

f. Screenshots of cancelled events.

6. Information required to register for payment through ACT Government finance systems, including bank account details and GST paying status.

a. Applicants will be required to upload a bank statement to evidence their bank account details and link to the business’ ABN.

7. Provide details of your qualified accountant, registered tax agent or registered BAS agent, if applicable.

8. Lodge other supporting documents as required to demonstrate you meet the eligibility criteria.

9. Declaration that the business meets the eligibility criteria;

10. Details of a current proof of identity document. This must be one of the following:

a. a driver licence issued in any Australian jurisdiction; or

b. an Australian Passport; or

c. a Medicare Card; or

d. a foreign passport for those issued with an Australian Visa.

11. The identity document details provided should be for a person listed on the Australian Business Register as either the owner or co-owner of the business or authorised contact of the business; and

12. Declaration that the applicant is authorised act on behalf of the business and that the information provided is true and accurate.

a. Or, in the event that a Qualified Agent is making the application, the applicant business has confirmed to the Qualified Agent that the statements set out and information provided in this application are true and correct.

ASSESSMENT

When the ACT Government receives your application, it will be assessed to ensure eligibility for grant payment (refer to Section 3 for Business Eligibility requirements).
All applicants must provide documentation at the time of application.
Applications that meet all eligibility requirements will be advised on the outcome of their application via email.
Payment will be made in a lump sum on average within 30 days of receiving a correctly lodged application. If we need to seek further or updated information from you to correctly assess your claim, this timeline will be reset.
The ACT Government may conduct a more detailed review of your eligibility at a later date. Refer to Section 7 for further information.

How Solution In can help you:

Need assistance to apply for the ACT Governments COVID-19 Business Support Grant? Call us today at 0405 012 345 or book an appointment online. Solution In can talk you through the submission process and provide additional advice regarding the scheme*