Business anger grows over State Government’s small business hardship grants program

The Government’s small business hardship grants program continues to come under fire, with questions being raised over why many eligible businesses were knocked back.

THE State Government is facing pressure to reveal details of the assessment system for small business hardship grants, as eligible operators who missed out struggle to come to terms with the set back.

Paul Dimmick, who owns Huon Bush Retreats in Ranelagh, could not understand why his accommodation business, which was stripped of all income and still had costs of $1100 a week, did not receive the full $15,000 coronavirus stimulus grant.

“Our outgoings continued and our income dropped to zero, but other businesses, whose outgoings stopped or were able to continue trading, received the $15,000,” Mr Dimmick said.

He said three public servants advised him to apply for the grant, which he did with the help of an accountant, only to be told he would receive only the smaller $4000 hardship grant, not the $15,000.

“Three days ago I got an email to say a review has been completed and I did not meet the threshold and did not qualify,” Mr Dimmick said.

MISMANAGEMENT CLAIMS IN HARDSHIP GRANT SCHEMES

BUSINESSES’ CONCERNS WITH HARDSHIP GRANTS PROGRAM

Huon Bush Retreats co-owner Paul Dimmick is puzzled as to why he did not receive the full $15,000 hardship grant. Picture: CHRIS KIDD

Amanda Jessup, at Margate Kennels, was similarly seeking answers after her application for the $15,000 was again knocked back on review.

She has been forced to access her savings and superannuation to meet the costs of overheads.

“I applied within the first 48 hours of the grant opening and another kennel got the money, even though they applied after me,” said Ms Jessup, who received the $4000.

“We just want answers.”

After sharing her confusion over missing out on the grant last week, Puddleduck Vineyard owner Jackie Brown received news that her case had been reviewed and her business would receive the full $15,000.

“It is a huge weight off our shoulders and it gives us that drive to continue,” Ms Brown said.

“It’s been a big mental shift. I have felt so down and this has given me such a lift.”

To be eligible for consideration in the first place, businesses had to have 49 or fewer full-time equivalent staff, be registered for GST, meet the hardship test and provide evidence of a loss of revenue greater than 30 per cent, criteria that both Mr Dimmick and Ms Jessup said they met in full.

Puddleduck Vineyard owner Jackie Brown said her business was granted the full $15,000 after her case was reviewed. Picture: RICHARD JUPE

On Saturday, a Government spokesman said assessors in the Department of State Growth “competitively assessed” each eligible application, with businesses required to “demonstrate hardship, show they were able to operate in the current environment and provide necessary products and services to the community, or were in a strong position to continue to support local jobs and economic growth into the recovery phase”.

Labor MP for Franklin David O’Byrne said he had been contacted by several businesses in his electorate who had missed out.

“They were eligible under the criteria and they deserve to know how it was decided who was more worthy than others,” Mr O’Byrne said.

“How did they assess who got the $4000, who got the $15,000 and who got nothing?”

Of 141 grant rejections under review, the Government said 85 had so far been finalised, resulting in 17 businesses receiving extra funding.