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Commonwealth 25 Per Cent COVID Top-Up Payments

Did your business receive payments through a COVID-19 Business Support Program? Depending upon which grant you received, your business may now be eligible for a 25 per cent top-up payment. Claims for the COVID-19 top-up payments will be open until the end of 30 June 2023 – given this short turnaround time it is critical that business owners act now.

Why is the Top-Up Payment Being Provided?

Unlike COVID-19 Business Support Packages in other Australian states, there were no WA Government programs granted non-assessable non-exempt (NANE) status by the previous Commonwealth Government. This means that payments made to WA business under these programs were taxable. Rather than granting these programs NANE status retrospectively, the WA and Federal governments have decided to provide this 25 per cent top-up payment to offset the tax payable on the initial grant.

Which Business Support Programs are Eligible?

The 25 per cent top-up payment can be accessed by eligible businesses that received any of the following COVID-19 grants:

• Small Business Hardship Grants Program*
• Tenant Rent Relief Scheme*
• Landlord Rent Relief Incentive*
• Small Business Assistance Grant – December 2021*
• Christmas Nightclub Closure COVID-19 Assistance Program
• Getting the Show Back on the Road and extensions
• International Education Industry Support Program
• Tourism Support Program
• Tourism Deposit Refund Program
• Travel Agent Support Fund
• Event Suppliers Program
• Nightclub Assistance Program
• Performing Arts, Theatres and Cinemas Assistance Program
• School Camps COVID-19 Assistance Package.

This means that you will receive an additional 25% of the initial grant payment you received. For instance, if your business qualified for and received $30,000 through a COVID-19 grant, you will now be able to claim a further $7,500. This should effectively offset the tax payable on that initial $30,000 grant payment.

Note that the first four grants in the list above (marked with *) were administered by the Small Business Development Corporation (SBDC) through their SmartyGrants portal – they will contact recipients via email to verify business details and eligibility so they can facilitate the top-up payment. Similarly, government agencies that administered the other programs will do the same for relevant grant recipients.

What do you Need to do Now?

Keep an eye on your emails – including your junk folder – particularly for correspondence from noreply@smartygrants.com.au or grants@smallbusiness.wa.gov.au.

• If you completed the original lodgement yourself, the relevant government agency that administered your business’ grant may contact you to verify your details and reconfirm your eligibility to receive the 25 per cent top-up payment.
• If we (i.e. McKinley Plowman) conducted the initial grant application process on your behalf, we may need to verify your details before submitting the claim for you.
• If someone else has previously submitted a successful grant application on your behalf and you would like us to attend to lodging your application for the top-up payment, please contact us at clientcare@mckinleyplowman.com.au and we will attend to your enquiry as soon as possible.

The short deadline for this claims process means we need to move quickly to ensure your business receives any top-up payments to which it is entitled.

Further Information:

Small Business Development Corporation – Commonwealth 25 per cent top-up payment

Top-Up Payments for COVID-19 Grant Recipients – WA Government

written by:

Claire Ginbey

Heading up our CFO2GO team, Claire's skills as a SME Business Specialist and cloud accounting specialist have developed in line with advancements in technology and best practice; allowing her to maintain the highest service standards for clients.

Claire's passion for growing small businesses and helping them achieve sustained success is what motivates her to continuously develop her skills and knowledge. Her clients appreciate her considered and dedicated approach to working with them, and her personal oversight across their operations and financial performance.