Lockdown Individual and Business Support

During the COVID-19 pandemic the government has made available a variety of support measures available to individuals and businesses who are impacted by lockdown periods. Recently, the following lockdowns have occurred in Queensland:

Individuals

There are two payments accessible to individuals: the COVID-19 Disaster Payment; and, the Pandemic Leave Disaster Payment.

Applying for Support

You can apply for the COVID-19 Disaster Payment or the top-up income support payment through your MyGov account if you have created and linked a Centrelink account. Apply for the Pandemic Leave Payment by phoning Services Australia on 180 22 66.

COVID-19 Disaster Payments

The COVID-19 Disaster Payment is a weekly payment available to eligible workers who can’t attend work or who have lost income because of a lockdown and don’t have access to certain paid leave entitlements. If you are a couple, both people can separately claim the payment.

Sole traders may apply for COVID-19 Disaster Payment if you are unable to operate your business from home. However, you will not be eligible if you are also receiving a state business grant such as the NSW 2021 COVID-19 Business Grant or JobSaver.

Timing of the Payment

The disaster payment is generally accessible if the hotspot triggering the lockdown lasts more than 7 days as declared by the Chief Medical Officer (you can find the listing here). From 2 August 2021, payments will apply from day one of the lockdown and will be paid in arrears once claims open (previously, the payment only applied from day 8 of a lockdown).

Amount of the Payment

The COVID-19 disaster payment amount available depends on:

• How many hours of work you have lost in the week, and:
• If the payment is on or after the third period of the lockdown

The payment applies to each week of lockdown you are eligible. On 29 July 2021, the Prime Minister stated that the COVID-19 disaster payment will not be taxable.

Eligibility

The COVID-19 disaster payment is emergency relief. It is available if you:

• Live or work in an area that is subject to a state or territory public health order that imposes restriction on movement and is declared a Commonwealth COVID-19 hotspot, or:
• Have visited an area that is a Commonwealth COVID-19 hotspot and you are subsequently subject to a restricted movement order when you return to other parts of the impacted region or interstate.

And you:

• Are an Australian citizen, permanent resident or temporary visa holder who has the right to work in Australia, and
• Are aged 17 years or over, and
• Have lost 8 hours or more of work or a full day of your usual work as a result of the restrictions – losing work includes being stood down by your employer, not being assigned any shifts for the week of restrictions and being unable to work from home. Losing a full day of what you were scheduled to work but could not work because of a restricted movement order includes not being able to attend a full-time, part-time or casual shift of less than 8 hours, and
• Don’t have paid pandemic-related leave available through your employer (annual leave is not taken into account for this), and
• Are not receiving income support payments, a state or territory pandemic payment, Pandemic Leave Disaster Payment or state small business payment for the same period. See ‘Top up’ payments for those on income support below. Income support payments include Age Pension, Austudy, Carer Payment, Disability Support Pension, Farm Household Allowance, JobSeeker Payment, Parenting Payment, Partner Allowance, Special Benefit, Widow Allowance, Youth Allowance and Income Support Supplement, Service Pension or Veteran Pension from the Department of Veterans’ Affairs.

‘Top Up’ Payments for Those on Income Support

A special separate $200 a week ‘top-up’ payment is available to those who currently receive an income support payment through social security, ABSTUDY Living Allowance, Dad and Partner Pay or Parental Leave Pay in addition to their existing payment, if they can demonstrate they have lost more than 8 hours of work and meet the other eligibility requirements for the COVID-19 Disaster Payment.

If you are a member of a couple, you can both apply for this payment.

Pandemic Leave Disaster Payment

The Pandemic Leave Disaster Payment is for those who have been advised by their relevant health authority to self-isolate or quarantine because they:

• Test positive to COVID-19;
• Have been identified as a close contact of a confirmed COVID-19 case;
• Care for a child, 16 years or under, who has COVID-19; or
• Care for a child, 16 years or under, who has been identified as a close contact of a confirmed COVID-19 case; or
• Care for a person who has tested positive to COVID-19.

Amount of Payment

The payment is $1,500 for each 14-day period you are advised to self-isolate or quarantine. If you are a couple, you can both claim this payment if you meet the eligibility criteria.

Eligibility

The Pandemic Leave Disaster Payment is available if you:

• Are an Australian citizen, permanent resident or temporary visa holder who has the right to work in Australia; and
• Are aged 17 years or over; and
• Are unable to go to work and earn an income; and
• Do not have appropriate leave entitlements, including pandemic sick leave, personal leave or carers leave; and
• Are not getting any income support payment, ABSTUDY Living Allowance, Paid parental leave or Dad and Partner Pay. Income support payments include Age Pension, Austudy, Carer Payment, Disability Support Pension, Farm Household Allowance, JobSeeker Payment, Parenting Payment, Partner Allowance, Special Benefit, Widow Allowance, Youth Allowance and Income Support Supplement, Service Pension or Veteran Pension from the Department of Veterans’ Affairs.

The payment is taxable and you will need to declare it in your income tax return.

If you are uncertain of your eligibility, talk to Services Australia.

If you are concerned about the impact of disaster relief payments on you, talk to us.

Businesses

If your business was impacted by the recent lockdowns in South East Queensland and Cairns and Yarrabah, support is available for your business through the:

• QLD 2021 COVID-19 Business Support Grant and the top-up grants package; and
• The one-off $1,000 payment to impacted sole traders

COVID-19 Business Support Grant

The QLD 2021 COVID-19 Business Support Grant provides grants of up to $5,000 for businesses impacted by the lockdowns plus a ‘top-up’ grant based on the size of your payroll (see ‘Top Up’ grants package below) bringing the total value of the grant to between $10,000 and a maximum of $30,000.

How to Apply

Applications are made online through Business Queensland. Applications opened mid-August.

Eligibility

The grant is limited to businesses with:

• Employ staff on your payroll (excluding business owners); and
• Have a Queensland headquarters (i.e., your principal place of business is located in Queensland) and you were trading in Queensland on 31 July 2021; and
• Have an ABN continuously held from 30 June 2021; and
• Be registered for GST; and
• Have an annual turnover of more than $75,000 or more during any of the 2018-19, 2019-20 or 2020-21 financial years (new businesses that do not have a full financial year can demonstrate that they will meet the turnover test requirement for 2021-22); and
• Have experienced a decline in turnover of at least 30% over a 7 day period that includes at least one full day of lockdown compared to turnover during the same 7 day period in July or August 2019. For new businesses that do not have a comparison period, or for businesses where 2019 did not represent a usual trading period, use another period such as July/August 2020.
• For small and medium businesses:
  • Have an annual Queensland payroll of not more than $10 million during any of the 2018-19, 2019-20 or 2020-21 financial years.
• For large tourism operators:
  • Have an annual Queensland payroll of more than $10 million during any of the 2018-19, 2019-20 or 2020-21 financial years; and
  • Operate in the tourism and hospitality sector (check the ANZSIC codes). Your details on the Australian Business Register will need to match these codes and can be updated through your MyGov account.

Employing sole traders who are not receiving the COVID-19 Disaster Payment and non-for-profits are eligible for the grant if they meet the eligibility criteria.

Your business does not have to be located in a locked down local government area to access the grant but businesses that are located outside lock down areas must provide evidence to show a reduction in turnover of more than 30%.

Insolvent businesses or businesses whose owners are insolvent or an undischarged bankrupt are ineligible for the grant.

‘Top-Up’ Grants Package

Businesses that qualify for the QLD 2021 COVID-19 Business Support Grant will also receive a ‘top up’ grant based on payroll size:

How to Apply

Applications are made online through the Queensland Rural and Industry Development Authority and close on 16 November 2021.

You will need to submit a letter from your accountant on their letterhead verifying your business’s turnover, decline in turnover, and payroll, or submit:

• Sales data evidencing a reduction in turnover;
• Payroll records, payroll tax information or other evidence of your business being an employer;
• BAS statements or other ATO records demonstrating turnover eligibility.

If required, your business’s trading location can be verified using your public website or utility bills for the business location.

Support for Sole Traders

The Queensland and Federal Governments have announced a one-off, $1,000 grant for non-employing sole traders across Queensland that have had a decline in turnover of more than 30%.

The full details of this package are not yet available but you can register your interest here.

The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information.  If expert assistance is required, professional advice should be obtained.