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The Marshall government has thrown a lifeline to the state’s SMEs, who are set to receive a $3,000 emergency payment to support them through the state’s seven-day lockdown.
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SA announces business support as the state enters lockdown
22 July 2021
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10 minute read
South Australia Premier Steven Marshall on Wednesday announced that “tens of thousands” of small and medium-sized businesses that have felt the impacts of the state’s seven-day lockdown stand to benefit from a $3,000 emergency cash payment as part of a “major” financial assistance package.
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The Marshal government’s new business support package is set to cost the state about $100 million and aims to support an estimated 50,000 SMEs across the state with the payment of rent, bills, supplier costs and other expenses.
As part of the package, eligible businesses who don’t employ staff, like non-employing sole traders, will receive a $1,000 cash grant.
South Australia treasurer Rob Lucas said the new support payments, modelled off similar programs running in New South Wales and Victoria, are an immediate lifeline for small and medium businesses, which he said underpin the state’s economy.
“We know this is an incredibly difficult time for many employers and their staff,” Mr Lucas said, “which is why we are doing everything in our power to help as many businesses as possible get through to the other side of this short lockdown.
“The $3,000 grants will provide an immediate cash injection to eligible businesses affected by the restrictions, by improving cash flow and helping cover costs such as commercial rent and utility bills or supplier fees for raw materials.”
To be eligible for the support payments, businesses must have a payroll of less than $10 million and an annual turnover of $75,000 or more in either the 2020–21 financial year or the 2019–20 financial year. Businesses must have seen a reduction in turnover of at least 30 per cent over the seven days from 20 July as a result of lockdown.
Mr Lucas left the door open on whether the government would consider further support, should the state’s lockdown restrictions extend beyond seven days.
“While we have no information to suggest that will be the case, we will consider what further assistance might be provided to businesses if the lockdown is extended beyond the current seven days,” Mr Lucas said.
As is already the case in New South Wales and Victoria, the South Australian government has agreed to a partnered expansion of the COVID disaster payment to extend beyond Commonwealth-declared hotspots, to support workers in regional SA who have lost work as a result of the state’s lockdown restrictions.
Fully funded income support payments of up to $600 a week will be offered to workers across the state for those who have lost 20 hours of work or more a week, while those who have lost between eight and 20 hours a week will receive payments of $375.
Mr Lucas said the state government will match the income support payments for workers outside the declared hotspots of metropolitan Adelaide, the Hills and Gawler areas, as is the case in NSW and Victoria.
“Our commitment will ensure South Australian workers whose hours are affected by the current lockdown will be supported, regardless of whether they work in Mitcham or Mount Gambier, Norwood or Nuriootpa, West Beach or Whyalla,” Mr Lucas said.
Mr Lucas has yet to rule out further federal support, saying that the Morrison government has “indicated” it would contribute to the cost of further business support, should it be required.
“We welcome the ongoing support of the federal government as we work together to get on top of the current COVID cluster and drive the state’s strong ongoing economic and jobs recovery and return to the lifestyle that’s earned us a growing global reputation as one of the most liveable cities in the world,” Mr Lucas said.
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