Q: What grants are available under the COVID-19 Tourism and Hospitality Support Grant package?

The COVID-19 Tourism and Hospitality Support Grant is comprised of an automatic top-up payment and further grant for eligible businesses with a higher turnover. Businesses in eligible tourism and hospitality sectors that have already received the COVID-19 Additional Business Support Grant will be automatically paid top-up grants of $3,000 for employing businesses and $1,000 for non-employing businesses. No additional application is necessary.

An additional grant amount is available for eligible employing businesses with higher turnover as follows:

  1. $7,000 for employing businesses with turnover of greater than $2 million and up to $5 million (paid in addition to top-up grants of $3,000 taking the total value of grants available to $10,000)
  2. $17,000 for employing businesses with turnover of greater than $5 million (paid in addition to top-up grants of $3,000 taking the total value of grants available to $20,000)

To receive these additional grants, eligible businesses will need to apply separately and provide the required supporting evidence to receive the additional $7,000 or $17,000 payment.

Q: What industry sectors are eligible for the COVID-19 Tourism and Hospitality 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 is not eligible for the COVID-19 Tourism and Hospitality Support Grant.

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

Yes, subject to meeting all the eligibly criteria for the COVID-19 Tourism and Hospitality Support Grant. This includes 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 grant?

The COVID-19 Tourism and Hospitality Support Grant automatic top-up payments are not subject to any minimum turnover test.

To access the larger grant amounts, the following minimum turnover requirements apply:

  • A turnover of greater than $2 million in 2019-20 or 2020-21 for the $7,000 payment (paid in addition to top-up grants of $3,000)
  • A turnover of greater than $5 million in 2019-20 or 2020-21 for the $17,000 payment (paid in addition to top-up grants of $3,000)

Q: Is a contractor considered an employee for the purpose of assessing eligibility for the COVID-19 Tourism and Hospitality Support Grant (Employing Business)?

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 COVID-19 Tourism and Hospitality Support Grant?

Sole Traders in eligible tourism and hospitality sectors that have already received the COVID-19 Additional Business Support Grant will be automatically paid top-up grants of $3,000 for employing businesses and $1,000 for non-employing businesses. No additional application is necessary.

Sole traders that employ staff may apply for the larger turnover based COVID-19 Tourism and Hospitality Support Grant where they have an annual turnover greater than $2 million. A business or not-for-profit must have employed staff as at 12:01am Wednesday, 28 July 2021 to be eligible for the larger turnover based grant.  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 for the purpose of the larger grant.

Q: Are partners in a partnership eligible for the COVID-19 Tourism and Hospitality Support Grant?

Partnerships in eligible tourism and hospitality sectors that have already received the COVID-19 Additional Business Support Grant will be automatically paid top-up grants of $3,000 for employing businesses and $1,000 for non-employing businesses. No additional application is necessary.

To be eligible for the larger turnover based COVID-19 Tourism and Hospitality Support Grant, a business or not-for-profit must have employed staff as at 12:01am Wednesday, 28 July 2021 and have an annual turnover of greater than $2 million.  Partners are not considered to be employees for the purpose of the larger grant.

Q: Are Trusts eligible for the COVID-19 Tourism and Hospitality Support Grant?

A trust structure does not prevent an applicant from applying or being eligible for the COVID-19 Tourism and Hospitality Support Grant. 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 COVID-19 Tourism and Hospitality Support Grant?

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 grant under the COVID-19 Tourism and Hospitality Support Grant?

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 NFP eligible for the grant?

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 20 July 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 for the COVID-19 Tourism and Hospitality Support Grant your business must have had an active GST registration as at 12:01am Wednesday, 28 July 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 (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 COVID-19 Tourism and Hospitality Support Grant?

Yes.

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: Is the COVID-19 Tourism and Hospitality Support Grant 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 similar COVID-19 Business Assistance Programs.

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