Federal and state govt strike deal on new $600m Covid-19 business support package

A major $600 million deal to support coronavirus-ravaged Queensland businesses and sole traders has been struck between the federal and state governments. Here’s what it means for those affected.

A MAJOR $600m deal to support Queensland businesses hard hit by the coronavirus pandemic has been struck between the federal and state governments as rolling lockdowns take their toll.

The support package builds on Queensland’s original $260m offering, with one-off grants now tiered depending on the size of a business.

Under the package, businesses in the state which have experience a 30 per cent fall in turnover will be able to apply for payments of;

– $5000 for small businesses with a payroll less than $1.3m.

-$10,000 for medium sized businesses with a payroll between $1.3m and $10m and;

-$25,000 for large tourism and hospitality businesses with a payroll greater than $10m.

Treasurer Josh Frydenberg MP. Picture: NCA NewsWire / Martin Ollman

Queensland’s deal with the Commonwealth follows similar joint packages struck with NSW, Victoria, Tasmania, South Australia and the ACT.

The support comes as the state’s tourism and hotel sector is in “dire straits” due to borders slamming shut to prevent coronavirus leaking into Queensland from New South Wales and from other clusters popping up in Victoria and the ACT.

Queensland Tourism Industry Council chief executive Daniel Gschwind said the peak body had been pushing “more vigorously” than ever for financial support.

“Our industry is at a standstill,” he said.

“Many businesses in the last couple of week have come to us in complete despair.

“The expanded program is another lifeline that will go some way to keeping people on some kind of support system.”

Federal Treasurer Josh Frydenberg said this new business support package recognises that “the impact of lockdowns is felt right across Australia”.

“The Morrison Government recognises the impact that lockdowns across the country are having on businesses in Queensland,” he said.

Queensland Treasurer Cameron Dick speaks during a media conference to provide a Covid update at Parliament House in Brisbane. Picture: NCA NewsWire / Dan Peled

Queensland Treasurer Cameron Dick said the package would “vastly increase the scope of support” available to businesses.

“From Monday 16 August, our $5000 COVID-19 Business Support Grants program will be open to businesses across Queensland, but this agreement with the Federal Government is in addition to that and means that we will be able to extend our support even further,” he said.

“It comes on top of the nearly $70 million in additional support and benefits for Queensland tourism and hospitality businesses that I announced earlier this week.”

That package included waiving or refunding liquor licensing fees for the tourism and hospitality sector for the 2021/22 financial year..

Those in the sector impacted by recent lockdowns can also defer payroll tax payments for August deferred for six months.

Opposition Leader David Crisafulli said it was “about bloody time”.