Victoria - 2021 Covid Support
Jul 27, 2021
Covid-19 and all these lockdowns are exhausting, we know. While we are super grateful we can work from home and look after you, we understand that for many of you work has been cancelled. The arts, tourism and hospitality seem to be hit the worst, and over and over. Most of our clients are small businesses in the arts, so we know and appreciate your businesses, and we are happy to help you navigate the tricky land that is covid support funding.
- This is written 27 July 2021 and may be subject to change.
- Always double check on Government official websites, or by emailing your accountant.
- The information here is not exhaustive. It is written with the majority of our clients in mind. Some of it will not apply to you, and there may be other grants available to you than what is in the below, depending on your unique circumstances.
We have outlined some of the key elements of the important grants, in SA, VIC and NSW. At the bottom of this we remind you how to calculate the decline in turnover and what turnover actually is.
Not your state? Check out these other blogs:
‘Covid-19 disaster payments’
- How much you can get depends on your location in VIC and the hours lost, in which weeks/periods - check this website and consider your own situation
- 16 to 22 July 2021
- 23 to 27 July 2021
- $375 for people who lost between 8 to 20 hours per period
- $600 for people who lost 20+ hours per period
- Australian resident, or hold a visa allowing you to work in Australia
- 17 years old or above
- Not claiming/receiving other financial support (like the ‘pandemic relief payments’)
- Not receiving income support (partner pay, parental leave pay etc.)
- Lost income on or after day 6, and don’t have the appropriate level of leave entitlements
- You can get this even if only eligible on one of the days
- If you are in a couple, you can both receive this if you are each eligible
‘$450 covid-test isolation payment’
- Apply here: https://businessvic.secure.force.com/PublicForm?id=eic19p2020#no-back-button
- $450 once off payment
- a requirement to self-isolate after the test
- a requirement to stay in isolation to care for someone who is required to self-isolate
- be 17 years and over
- have been tested for coronavirus (COVID-19) or be the guardian or carer of someone who has been tested
- live in Victoria
- not be receiving Australian Government income support such as the JobSeeker payment, or be an employee subject to the JobKeeper payment
- be likely to have worked during the self-isolation period and unable to work due to:
- not receive income or salary during self-isolation
- have exhausted sick and/or carers leave entitlements, including special pandemic leave, or have no entitlement to such leave
There are also further funds for you if you have covid, or are in quarantine (14 days).
As part of the ‘Circuit Breaker Business Support Packages’ there is some regional support, and a ‘Top Up’ payment for some businesses. There are also some specific ones for those involved in events but applications for these are closed.
‘Top Up Payment’ - 21 July 2021
(this one is in addition to the ‘Top Up Payment’ announced 16 July 2021)
- $2,800 additional payment for those successful recipients of the Business Costs Assistance Program Round Two (see below) i.e. if you were eligible for the Business Costs Assistance Program Round Two, then you should also receive this top up payment
- If you did not receive it then you are ineligible for this 21 July 2021 Top Up
- If you are eligible, the payment will be made to you automatically
- If you have questions, call: 13 22 15
‘Business Costs Assistance Program 2’
- Applications for this closed 24 July 2021
- Eligibility Criteria: - see detail here:
- Check what your ABN says your industry is, and make sure it reflects your primary business
- Be registered with WorkSafe VIC
- Attest that the business is supporting its workers to access paid leave entitlements etc.
- Be located in VIC
- Be registered as operating in an eligible industry sector identified in the list (ANZSIC classes) - refer website for more information
- Have incurred direct costs as a result of the circuit breaker action, and the business cannot operate predominantly remotely
- Have an annual Victorian payroll of up to $10 million in 2019-2020 year
- Be registered for GST on 27 May 2021 (no, we cannot back date rego for you)
- Hold an ABN (since/before 27 May 2021)
- Be registered with the Federal or State legislator (like ASIC)
- There are some additional criteria and conditions to consider too
- Have your proof of ID ready to roll
- The amount depends on what period your business was subject to restrictions:
- $2,500 - under restrictions 28 May to 3 June
- $5,000 - under restrictions 28 May to 10 June
- $7,000 - under restrictions 28 May to 17 June
- Applications are reviewed and approved by the Department
- The funds must be used for certain purposes
Turnover is like INCOME - not profit, which is income minus expenses. Technically speaking, the JobKeeper rules state that an entity satisfies the decline in turnover test at a test time if:
"(a) the entity’s projected GST turnover for a turnover test period in which the test time occurs falls short of the entity’s current GST turnover for a relevant comparison period..." (Rule 8(1)(a))
So... what is projected GST turnover?
"Projected GST turnover has the meaning given by the GST Act" (per the definitions section of the super boring Act I had to read for you guys).
Cool, that doesn't really help...
The GST Act defines in s188.20:
"Projected GST Turnover: Your projected GST turnover at a time during a particular month is the sum of the values of all the supplies that you have made..."
FYI we're going to refer to this as "turnover" from here on out because the GST and 'projected' bits are confusing the matter, in my opinion.
Now, this all sounds like it is talking about BAS stuff, right!?
GST Turnover is not actually BAS turnover. It is turnover as defined in the GST Act.
So, what does this actually mean?
- Income for the period, compared to income for the other period
- You can use cash or accrual accounting of that income
The ATO have said that technically accruals is the correct method, but if you use the cash method on your BAS (or for your tax return I imagine) then you can use cash for this calculation too.
Projected GST turnover and current GST turnover excludes the following:
- GST you included in sales to your customers (if any)
- sales that are input taxed sales (e.g. bank interest, sale of shares, residential rental income)
- sales not connected with an enterprise that you carry on (e.g. sale of private car)
- sales that are not made for payment (unless a taxable supply to an associate)
- payments for no supply (e.g. JobKeeper payments)
- gifts and donations (except for deductible gift recipients and ACNC-registered charities as discussed above)
- sales not connected with Australia, for example:
- sales of services made through a business you carry on outside Australia
- sales of goods purchased and sold from a place outside Australia
- sale of real property situated outside Australia
KEY MESSAGE: Pick any method (cash or accrual), just be consistent with the same method between the comparison periods.
TURNOVER DECLINE CALCULATION
[(Old - New) / Old] = % of change (presented as a decimal)
- $20,000 in comparison period
- $15,000 in assessment period
$20,000 - $15,000 = $5,000
$5,000 / $20,000 = 0.25
This is 25%, which is not more than 30%, so this would not qualify.