Q: What are the Tourism, Hospitality and Gym Grants?

There are two grants available to eligible businesses as follows:

Tourism, hospitality and gym grant – automatic payment

This grant is automatically paid to businesses that received the previous COVID-19 Tourism and Hospitality Support Grants (i.e. automatic payment and larger turnover payment) as well as other businesses that received the Additional COVID-19 Business Support Grant and fall within the eligible ANZSIC classification codes.

No application is necessary.

Tourism, hospitality and gym grant – turnover based payment

Businesses that fall within the eligible ANZSIC classification codes or required to operate under the 1 person per 7 square metre density restriction are able to apply for this grant.

A business does not need to have received the Tourism, hospitality and gym grant – automatic payment to be eligible for this grant, however, to receive this grant a business MUST submit an application.

An eligible business that commenced operations before 1 December 2020 must declare and retain evidence of the following:

  • For businesses that commenced trading prior to 2019-20:
      
    The relevant two week period between 27 December 2021 (beginning of restrictions) and 9 January 2022 where it experienced a 30 per cent reduction in turnover when compared to the same two week period (i.e. 27 December to 9 January) in 2019-20.
  • For businesses that commenced trading in 2019-20 or 2020-21 (before 1 December 2020):
      
    The relevant two week period between 27 December 2021 (beginning of restrictions) and 9 January 2022 where it experienced a 30 per cent reduction in turnover when compared to the same two week period (i.e. 27 December to 9 January) in 2019-20 or 2020-21.

An eligible business that commenced operations on or after 1 December 2020 must declare and retain evidence that it has experienced at least a 30 per cent reduction in turnover due to the restricted trading conditions over the two weeks from 27 December 2021 (the commencement date of the trading restriction) to 9 January 2022 (inclusive) compared to:

  • the average fortnightly turnover from when the business commenced operations to 30 November 2021.

Q: Is there any other criteria for the turnover based payment?

To be eligible, businesses will also be required to meet the following criteria as at the start of the restriction period of 12:01am Monday 27 December 2021:

  • Have a valid and active Australian business number (ABN) and were carrying on the operation of a business in South Australia.
  • Be registered for the GST.
  • Have an Australia-wide grouped payroll of less than $10 million in the 2019-20 or 2020-21 financial year.
  • Not be engaged in illegal activities.

To be eligible for the higher turnover based payment, employing businesses will need to provide evidence of a turnover of greater than $2 million in 2019-20 or 2020‑21.

To be eligible for the CBD turnover based payment, a business must operate from a commercial premise in the Adelaide CBD as at 12:01am Monday 27 December 2021 (start of restriction period).  

The Adelaide CBD is defined as postcode 5000. Residential premises and vacant land are not considered commercial premises for the purpose of this grant.

Q: How much can my business receive under these grants?

The value of the COVID-19 Tourism, Hospitality and Gym Grants (automatic payment and turnover based payment) are summarised in the table below:

Automatic grant payment (tourism and hospitality businesses)

Automatic grant payment (other eligible businesses)  

Turnover based payment (application required)*

Non-employing business

 

Not operating in CBD

$1,000

$1,000

$1,000

Operating in CBD

$2,000

$2,000

$2,000

Employing business

Turnover $2 million or less#

Not operating in CBD

$3,000

$3,000

$3,000

Operating in CBD

$4,000

$4,000

$4,000

Turnover greater than $2 million#

Not operating in CBD

$10,000^

$3,000**

$10,000**

Operating in CBD

$11,000^

$4,000**

$11,000**

#$2 million turnover in 2019-20 or 2020-21.

^For tourism and hospitality businesses that received the previous COVID-19 Tourism and Hospitality Support Grants (both the automatic payment and larger turnover payment).

*For businesses that are eligible for this grant, but have not received an automatic payment, the business will receive an additional amount equal to the value they would have received under an automatic payment.  As an example, if a non-CBD employing business with a turnover below $2 million is eligible for a $3,000 turnover based payment under the application process but has not received an automatic payment, they would be entitled to an additional $3,000 payment, totalling $6,000 in total. This ensures equitable treatment for any business that has not received the automatic payment.

**Businesses that received an automatic payment of $3,000 or $4,000 and are eligible to receive the higher turnover based payment (i.e. $10,000 or $11,000) will also be eligible for an additional $7,000 payment as part of the application process. This means that an eligible business may receive a total turnover based payment of $17,000 or $18,000 in addition to an automatic payment of $3,000 or $4,000.

To be deemed an employing business, the business must employ people in South Australia.

Where multiple non-employing businesses meeting the eligibility criteria are controlled by one individual, company, partnership, or trustee, funding will be restricted to one grant for all non‑employing businesses controlled by the individual, company, partnership, or trustee.

Q: What industry sectors are eligible for the COVID-19 Tourism, Hospitality and Gym Support Grant?

To see if your business is an eligible industry sector you should:

  • Check the four-digit ANZSIC class linked to your Australian Business Number (ABN) on the Australian Business Register and confirm it matches your primary business activity.
  • Check if the four-digit ANZSIC class linked to your ABN is in the list of eligible ANZSIC classes for this grant.

If your four-digit ANZSIC class linked to your ABN is not on the list of eligible ANZSIC classes, your business may still be eligible if it is required to operate under the 1 person per 7 square metre density restriction.

Q: How do I check my ANZSIC class?

Your ANZSIC classification is not publicly available using the ABN lookup facility. You must log into the Australian Business Register (ABR) website to view and manage this information.

You can check the four-digit ANZSIC class linked to your Australian Business Number (ABN) on the ABR website and confirm it matches your primary business activity.

You will need:

  • Your ABN; and
  • myGovID details

On the ABR website click on “update your ABN”

You will then need to use your myGovID logon process to progress through to the ABR site.

If you have not set up your myGovID, you will need to set it up on the myGov website.

Q: My business was required to operate under the 1 person per 7 square metre density restrictions but is not listed as an eligible ANSZIC class. Am I eligible for a grant(s)?

Yes, subject to meeting all other eligibly criteria. Please select ‘Other business directly impacted by density restrictions’ when applying.

Q: Are operators of taxis, Ubers and other commercial passenger vehicle ride services eligible for a grant(s)?

Yes, subject to meeting all the eligibly criteria including a requirement that the business has an ANZSIC class listed in the eligible industry sectors. Eligible ANZSIC classes include class 4623 Taxi and Other Road Transport.

Q: Is there a minimum turnover test to apply for the turnover based payment?

There is no minimum turnover test, but those businesses with a turnover exceeding $2 million in 2019-20 or 2020-21 will be eligible for a larger grant as summarised under the previous question - Q: How much can my business receive under these grants?

Q: Is a contractor considered an employee for the purpose of assessing eligibility for the turnover based payment?

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.

Q: Are sole-traders eligible for the grants?

Yes, sole traders may receive the automatic grant payment as well as the turnover based payment subject to meeting the applicable eligibility criteria.

For a sole trader to be considered employing, the business or not-for-profit must have employed staff as at 12:01am Monday, 27 December 2021.  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 and superannuation paid by the employer.  An owner is not considered to be an employee.

Q: Are partners in a partnership eligible for the grants?

Yes, partnerships may receive the automatic grant payment as well as the turnover based payment subject to meeting the applicable eligibility criteria. For a partnership to be considered employing, a business or not-for-profit must have employed staff as at 12:01am Monday, 27 December 2021.  Partners are not considered to be employees.

Q: Are Trusts eligible for the grants?

A trust structure does not prevent an applicant from applying or being eligible for the grants. The trust will still need to meet all the criteria of the grant programs.

A beneficiary of a trust is not deemed an employee, just because they are a beneficiary. Being deemed an employee requires a genuine employer/employee relationship with Pay As You Go Withholding amounts and superannuation paid by the employer.

Q: Are directors or shareholders of a company deemed to be an employee for the grants?

A company can employ a director or shareholder in a role other than a director or shareholder. The employee would receive regular PAYG salary or wages, and Pay As You Go Withholding amounts and superannuation would be paid by the employer. Where the company employs workers, including a director or shareholder, they may be eligible for the grant.

Q: How do I calculate turnover?

Turnover will be defined according to the current calculation for GST purposes and is reported on Business Activity Statements. It includes all taxable supplies and all GST free supplies but not input taxed supplies.

Under the GST law, only Australian based sales are included and therefore, only Australian based turnover is relevant.

Q: I run a not-for-profit organisation. Can I apply for a turnover based payment?

Not-for-profit organisations may apply for a grant as long as they meet the eligibility criteria.

Q: I am a not-for-profit with turnover above $75,000 but am not registered for GST is my not-for-profit eligible for the turnover based payment?

The BAS registration threshold for not-for-profit organisations is $150,000 so it is possible to have annual turnover greater than $75,000 but not be registered.  Not-for-profit organisations that are not registered for GST are asked to upload evidence with their application that annual turnover is greater than $75,000. In this instance, NFPs should answer “yes” to the statement “The business was registered for GST at
27 December 2021 or is a not-for–profit not registered for GST with an annual turnover in excess of $75,000 per annum”.

Q: I recently registered my business for GST. Will this affect my eligibility?

To be eligible, your business must have had an active GST registration as at 12:01am Monday, 27 December 2021.

Q: What are acceptable versions of BAS?

  1. Evidence must clearly indicate that the business activity statement has been lodged with the ATO (lodged Business Activity Statements are available on the ATO’s Business Portal or through your tax agent).
  2. Activity has occurred in FY2020-21 or FY2019-20 (can be either monthly or quarterly BAS, depending on how your business reports).
  3. If on an ATO letterhead – it should include the phrase “Activity Statement”.
  4. Multiple forms of evidence may make up an acceptable submission, as long as there is:
  1. Evidence it has been lodged with the ATO (could include payment confirmation).
  2. An ABN (first 11 digits of BPAY reference may include ABN if not stated elsewhere).
  3. Activity has occurred in the current financial year

Q: If I am a successful applicant, are there restrictions on what I can spend the funds on?

No. The grants are provided to support eligible businesses that have been adversely impacted by COVID-19.

This may include expenditure on:

  • Utilities, salaries and rent.
  • Seeking financial, legal or other advice to support business continuity planning.
  • Developing the business through marketing and communications activities.
  • Other supporting activities related to the operation of the business.

Q: Are JobKeeper payments included to calculate the payroll threshold ($10 million total Australian taxable payroll)?

JobKeeper payments are excluded from the calculation of total Australian payroll.

Q: I have already applied / received previous COVID-19 business support grants from the Government of South Australia to assist my business. Can I still apply for the turnover based payment?

Yes. Businesses are eligible to receive the turnover based payment even if they have received support under any of the following State Government COVID-19 support packages, including:

  • COVID-19 Business Support Grant;
  • COVID-19 Additional Business Support Grant;
  • COVID-19 Tourism and Hospitality Grant
  • COVID-19 Business Hardship Grant (September 2021 package);
  • Major Events Support Grant (September 2021 package); or
  • Regional COVID-19 Support Grant – Lower South-East.

Businesses will not be eligible to receive a payment if they have received support under any of the following State Government COVID-19 support packages launched on and after 27 December 2021, including:

  • Business Hardship Grant; or
  • Major Events Support Grant.

Q: Can my accountant/lawyer apply on my behalf?

Yes, it is permissible for an agent such as an accountant or lawyer to submit the application on behalf of business provided they have been instructed to do so by the following authorised people:

  • In the case of a business that is a sole trader that employs, the sole trader
  • In the case of a business that is a partnership that employs, a partner
  • In the case of a business that is a body corporate that employs, a director, secretary, public officer or equivalent.

Q: Are the Tourism, Hospitality and Gym grants taxable?

An application is being lodged with the ATO for the grants to be treated as Non Income Non Exempt in accordance with the treatment afforded to similar COVID-19 Business Assistance Programs.

Until a ruling has been received determining otherwise, the grants will be treated as assessable income.

Q: Is my business eligible for the Tourism Hospitality and Gym Grant if operations commenced on or after 27 December 2020?

Yes, if your business commenced operations on or prior to 30 November 2021, you will be eligible for the Tourism Hospitality and Gym Grant subject to meeting all other necessary eligibility criteria.