The ACT Government today announced a joint Commonwealth funded olive branch will be extended to Canberra’s small and medium businesses in the form of grants and a fee credit scheme.
ACT Chief Minister Andrew Barr said a range of financial supports for businesses and individuals will be provided through the COVID-19 lockdown.
“We recognise the impact of the lockdown on individuals and businesses,” he said.
The ACT COVID-19 Business Support Grant will deliver grants of $3,000 for employing businesses and $1,000 for non-employing businesses where their turnover has declined by 30% or more due to restrictions.
The ACT Government will also open a COVID-19 Small Business Hardship Scheme, where eligible ACT businesses can apply for credits on the cost of eligible fees and charges of up to $10,000.
COVID disaster payments of up to $750 a week will also be available for individuals who have lost work as a result of the lockdown through Services Australia and MyGov.
Applications for the COVID disaster payments will open Friday 20 August and be paid in arrears.
Canberra Business Chamber CEO Graham Catt told Canberra Daily that for many, the $3,000 cash payment will combine with up to $10,000 of credits from the ACT Government to cover operating costs, but that the main concern is how quickly these supports can be accessed.
“Cash is critical for small business and how quickly that cash can flow to the bottom line will be the big question for many,” he said.
“Canberra businesses have shown us their resilience,” he said. “But we really do fear that if this does become a protracted lockdown or there is a return to restrictions longer term, this could prove to be the final straw.”
Mr Catt said the extent to which businesses are hit by the lockdown will vary depending on myriad factors.
“The support they need depends on how much income they will lose, their rent and other operating costs, how many staff they have and how they are employed, whether they carry stock or inventory and whether that is perishable and many more factors,” he said.
“For business that is shut down for a week or longer, support means covering the operating costs that a business still has even while they’re not receiving any income.”
The Hardship Scheme will provide credits for payroll tax, utilities, rates and certain business licences for small to medium businesses that can demonstrate a 30% loss in revenue.
The measures, as has been the case with other jurisdictions impacted by lockdowns, are funded 50/50 between the Commonwealth and state/territory government.
Information for businesses is available at the ACT Government business hub.
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