Program Guidelines - Department of State Growth

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Program Guidelines - Department of State Growth
COVID-19 Micro and Small
Business – Border Closure
Critical Support Grant
                            Program
                            Guidelines

  Document title                     1
Contents
COVID-19 Micro and Small Business Hardship – Border Closure Critical Support Grant Program .2
1.    Aim.........................................................................................................................................................2
2.    Grant funding ........................................................................................................................................3
3.    Eligibility criteria...................................................................................................................................4
4.    Ineligible applicants ..............................................................................................................................5
5.    Information requirements and assessment .......................................................................................6
6.    Timeframes ...........................................................................................................................................7
7.    Application process ..............................................................................................................................8
8.    Appealing a decision .............................................................................................................................9
9.    Taxation and financial implications ....................................................................................................9
10.      Grant payments ................................................................................................................................9
11.      Confidentiality .................................................................................................................................10
12.      Administration and contact details ...............................................................................................10
13.      Publicity of grant assistance ...........................................................................................................10
14.      Right to information .......................................................................................................................11
15.      Personal information protection ...................................................................................................11
16.      Disclosure ........................................................................................................................................11
17.      Disclaimer ........................................................................................................................................11

COVID-19 Micro and Small Business – Border Closure Critical Support Grant

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COVID-19 Micro and Small Business
Hardship – Border Closure Critical Support
Grant Program
1.               Aim
The health, safety and wellbeing of Tasmanians is our number one priority as we face the challenges presented by
the coronavirus pandemic.

The program will be targeted at micro and small businesses operating in the tourism, hospitality, arts and events,
seafood and transport (hire car, coach tours) sectors, and other business that have suffered severe hardship as a
result of the lockdowns and border restrictions that are in place in other states.

The support program will be available to businesses that have suffered a significant reduction** in turnover as a
direct result of lockdowns and border closures in other states, as a result of:

    •    A reduction in the number of visitors being able to travel to Tasmania; and/or
    •    A reduction in the ability to provide, sell or import/export goods and services.

The grant program will remain open for applications until Thursday 23 September 2021, 2:00 pm.
** Reduction in turnover will be for a comparative period prior to and after 26 June 2021.

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2.               Grant funding
Grants of between $1 000 and $10 000 will be provided to successful applicants.

The amount of funding will be determined by the Department of State Growth during the assessment process,
using the information and evidence submitted by applicants, according to the business’ annual turnover.

To be eligible for a grant, a business must demonstrate that as a direct consequence of the lockdowns and border
closures restrictions, they have experienced a reduction in turnover of at least 30 per cent for a minimum
consecutive two (2) week period from 26 June 2019 or 2020 compared with any equivalent two (2) weeks after
26 June 2021.

Grant funding available will be determined based on the business’s annual turnover, defined as total sales
(exclusive of GST), of goods and services to customers by the applicant.

Annual turnover can be for any of the following periods: 2018-19, 2019-20, 2020-21 financial years or 2020
calendar.

 Funding Tier       Business Annual Turnover (exclusive of GST)                                    Maximum grant
                                                                                                   funding available

 Tier 1             Impacted businesses with an annual turnover of:
                                                                                                   $1 000 grant
                     •       $25 000 to $49 999, and
                     •       have been impacted by a reduction in turnover of 30% or more,

 Tier 2             Impacted businesses with an annual turnover of:                                $2 000 grant
                     •       between $50 000 up to $1 million
                     •       have been impacted by a reduction in turnover of 30% or more, and
                     •       have no employees

 Tier 3             Impacted businesses with an annual turnover of:                                $5 000 grant
                         •      between $50 000 and $1 million
                         •      have been impacted by a reduction in turnover of 30% or more and
                         •      currently employ staff

 Tier 4             Impacted businesses with an annual turnover of:                                $10 000 Grant
                         •      between $1 million up to $10 million
                         •      have been impacted by a reduction in turnover of 30% or more and
                         •      currently employ staff

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3.               Eligibility criteria
Enquiries applicants may have about the eligibility criteria are to be directed to Business Tasmania on
1800 440 026.

Note: One application per ABN.

Applicants must:

3.1    Be a Tasmanian business with a minimum annual turnover* of $25 000 and be able to demonstrate having
       suffered severe hardship as a result of the lockdowns in other states and current border closures from
       26 June 2021.

3.2    Be a Tasmanian business that has not received a grant under the previous Business Hardship – Border
       Closure Critical Support Grant (now closed).

3.3    Be registered for tax purposes in Australia with a continuously active ABN on or before 1 May 2021.

3.4    Be an actively operating Tasmanian eligible business that has suffered at least a 30 per cent reduction in
       turnover* as a direct result of lockdowns in other states and current border closures from 26 June 2021.**

3.5    Be registered (if required) and actively using the Check in TAS App, or register at the time of submitting an
       application. **

*     Turnover is defined as total sales of goods and services for the applicant’s nominated financial year within the
      last three financial years.
**    For applicants required to register for the Check in TAS App, funding will only be considered for those
      applicants who either have registered and are actively using the app or register at the time of submitting an
      application.

From 1 May 2021 many organisations are required to register a premises or event for the Check in TAS app.
Additional organisations are required to register a premises or event from 31 July 2021.
To find out more about requirements to register for the Check in TAS App go to
https://coronavirus.tas.gov.au/check-in-tas or
https://www.business.tas.gov.au/coronavirus_information/check_in_tas_app

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4.               Ineligible applicants
Applicants who cannot apply:

4.1      Businesses that have received a Busines Hardship – Border Closure Critical Support Grant (now closed).
4.2      Businesses who have not been directly impacted by current lockdowns in other states and current border
         closures from 26 June 2021.
4.3      Local, State or Australian Government entities.
4.4      Not-for-profit organisations, incorporated associations, or charities unless the organisation is operating as
         a business and employing paid staff and/or selling goods and services that make up more than 30 per cent
         of the organisation’s income.
4.5      Any business that is trading insolvent, under external administration or bankruptcy.
4.6      Investment entities (such as unit trusts and superannuation funds) including residential and commercial
         property investments/rentals.
Note:
Applications submitted by a third party are ineligible unless the applicant has provided the third
party with written permission to do so, and this permission is submitted as evidence with the
application.

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5.               Information requirements and
                 assessment
Applicants will be required to complete an application form detailing a reduction in turnover of at least 30 per
cent for a minimum consecutive two (2) week period within the lockdown timeframe, compared to a previous
minimum consecutive two (2) week period outside the lock down timeframe.

To be eligible for a grant, a business must demonstrate that as a direct consequence of the lockdowns and border
closures restrictions, they have experienced a reduction in turnover of at least 30 per cent for a minimum
consecutive two (2) week period from 26 June 2019 or 2020 compared with any other equivalent two (2) weeks
after 26 June 2021.

Applicants should note that assessors may contact applicants directly to provide supporting evidence to
demonstrate their claims of 30 per cent loss.
Applications will be assessed based on the information provided, and may be subject to spot audits.
The program will be non-competitive with grants assessed in order of receipt.

Evidence (supporting documents)
For all applicants, evidence that clearly supports claims of annual turnover for the nominated financial period, such
as:
         Annual Financial Statements

         Tax Returns

         Other similar documentation that clearly demonstrates annual turnover

For those applicants applying under Tier 3 or 4, in addition to the above, information that substantiates a 30 per
cent decline in turnover:

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6.               Timeframes
To ensure everyone has an equal opportunity to apply for a grant, no late applications will be accepted after the
closing date and time. For any extenuating circumstances that may prevent applicants meeting the deadline,
applicants must contact Business Tasmania before the grant program closes to discuss further.

Applicants are advised to submit applications well before the closing date and time. This will allow time for
applicants to raise any concerns when submitting an application.

During the assessment process the department may, at its discretion, require further information to support or
clarify an application. This information must be provided within three (3) working days, unless otherwise agreed.
Failure to provide further requested information within the timeframe may result in the application being
unsuccessful.

 Description                                              Date

 Program opens                                            Friday 3 September, 2:00 pm

 Program closes                                           Thursday 23 September, 2:00 pm

 Application assessments                                  In order of receipt of application

 Application approval                                     In order of assessment

 Payments to successful applicants                        To be made as soon as possible after approval

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7.               Application process
The Department of State Growth uses an online grants management system called SmartyGrants. This system is
easy to use and accessible via mobile phones, tablets, laptops and personal computers.

The online platform accepts applications at any time, for the period that the program is open. It also allows us to
send you notifications throughout the grant application and funding process.

If you do not have internet access, please contact Business Tasmania to discuss alternate options.

7.1      Applicants should read the guidelines and any frequently asked questions carefully before starting an
         application. The application form will help structure responses.

7.2      There is no opportunity to change an application or provide further information once the application has
         been submitted. Therefore, applicants should ensure that all supporting documentation provided is
         accurate and has been attached correctly before submitting.

7.3      If further information to support or clarify an application is required, the department will make a request
         to the applicant.

7.4      Applicants should complete and lodge an application online via SmartyGrants from the Business Tasmania
         website www.business.tas.gov.au. Applicants unable to apply online via SmartyGrants can access a manual
         application by calling Business Tasmania on 1800 440 026.

NOTE: Applications close on Thursday 23 September at 2:00 pm

7.5      Following the submission of the application via SmartyGrants, an automatic reply is generated to confirm
         receipt. This receipt will include details of the application and a unique application ID.

7.6      Applications will be assessed by a departmental assessment team.

7.7      Applicants will be advised of the outcome of the application once the assessment and approval process
         has been completed.

7.8      Note, the Department of State Growth is not responsible for applicants who do not submit correct bank
         account details.

What does a successful application look like?

A successful application:
  • Is submitted before the closing date and time.
  • Meets all aspects of the eligibility criteria.
  • Demonstrates a good understanding of the purpose of the grant program.
  • Demonstrate that the grant funding aligns to the purpose of the grant program.
  • Has clear well-structured answers to all the assessment criteria questions.
  • Contains, where requested, quality documented evidence to support claims against the eligibility and/or
      assessment criteria.

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8.               Appealing a decision
State Growth may reconsider a decision if the applicant can demonstrate a proven conflict of interest, error in
process or discrimination.

If an applicant has reason to believe that the proper process was not followed in assessment of an application, a
request for review may be submitted.

Grounds for appeal are:

    1. The persons making the decision had a direct or indirect financial interest in the outcome of the
       application.
    2. The preparation of the application was affected adversely by incorrect advice provided by a staff member
       of the Department of State Growth.
    3. The persons making the recommendations discriminated against the applicant on irrelevant grounds, such
       as cultural, religious or linguistic background; race; gender; marital status; sexual orientation; or disability.

All requests for review must be in writing and should be addressed to the Director or Manager of the business
unit where the application was assessed.

A request for review must be received within 28 days from the date of the Department of State Growth notifying
an applicant of the decision.

9.               Taxation and financial implications
No GST will apply to this grant.

The receipt of funding from this program may be treated as income by the ATO. While grants are typically
treated as assessable income for taxation purposes, how they are treated will depend on the recipient's particular
circumstances.

Applicants may wish to seek independent advice about the possible tax implications for receiving the grant under
the program from a tax advisor, financial advisor and/or the Australian Taxation Office (ATO), prior to submitting
an application.

10. Grant payments
Applicants will be asked to supply bank account details in order to process successful grant payments. The bank
account must be in the same name of the person or business that applied for the grant. The Department may
request a copy of bank statements or a letter from the bank to confirm the bank account details.

Provision of incorrect bank account details may result in funds being paid to an incorrect account, with any funds
returned before the department can attempt another grant payment to rectify. Additionally, the department

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cannot guarantee that funds paid to an incorrect bank account will be returned to the department. This process
may result in significant delays in funding being received.

Applicants who receive a grant and subsequently the information provided is found to be false or misleading, will
be required to return the funds to the department.

11. Confidentiality
The Tasmanian Government may use and disclose the information provided by applicants for the purposes of
discharging its respective functions under the Program Guidelines and otherwise for the purposes of the program
and related uses.

The department may also:

1.        Use information received in applications for any other departmental business.

2.        Use information received in applications and during the performance of the project for reporting.

12. Administration and contact details
The program will be administered by the Department of State Growth on behalf of the Crown in the Right of
Tasmania. Contact with the department for any of the following reasons can be directed to:
ask@business.tas.gov.au or Business Tasmania on 1800 440 026

     •   Further information or advice on the program
     •   Assistance in making an application
     •   Further feedback on the decision of the application
     •   Request a review of the decision
Important Note

All applicants must take care to provide true and accurate information. Any information that is found to be false
or misleading may result in action being taken and grant funds, if already provided, will be required to be repaid to
the department.

13. Publicity of grant assistance
The Department of State Growth disburses public funds and is therefore accountable for the distribution of those
funds. This grant program is intended to provide assistance in cases of hardship. As part of the accountability
process, the department may publicise information considered appropriate taking account of the hardship
circumstances.

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14. Right to information
Information provided to the Department of State Growth may be subject to disclosure in accordance with the
Right to Information Act 2009.

15. Personal information protection
Personal information will be managed in accordance with the Personal Information Protection Act 2004. This
information may be accessed by the individual to whom it related, on request to the Department of State
Growth. A fee for this service may be charged.

16. Disclosure
The following applies to all successful applicants:

    •    Despite any confidentiality or intellectual property right subsisting in the grant funding agreement or
         deed, a party may publish all or any part of the grant funding agreement or deed without reference to
         another party.

    •    Nothing in this item 15. Disclosure, derogates from a party's obligations under the Personal Information
         Protection Act 2004 (Tas) or the Privacy Act 1988 (Cwlth).

17. Disclaimer
Although care has been taken in the preparation of this document, no warranty, express or implied, is given by
the Crown in Right of Tasmania, as to the accuracy or completeness of the information it contains. The Crown in
Right of Tasmania accepts no responsibility for any loss or damage that may arise from anything contained in or
omitted from or that may arise from the use of this document, and any person relying on this document and the
information it contains does so at their own risk absolutely. The Crown in Right of Tasmania does not accept
liability or responsibility for any loss incurred by an applicant that are in any way related to the program.

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Department of State Growth
                                            Salamanca Building, Parliament Square
                                            4 Salamanca Place
                                            TAS 7001

                                            Phone:    1800 440 026

                                            Email:    ask@business.tas.gov.au

                                            Web:      www.business.tas.gov.au

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