Covid-19 income support extended to all of SA, and new $100m business lifeline announced

All affected workers can now access financial help after the state government extended Covid support statewide. And a $100m package for businesses has been announced.

Financial relief for workers suffering from the seven-day lockdown will be extended to all areas of South Australia, with the state government footing the bill for individuals in regional locations.

The state government also announced a $100m lifeline for tens of thousands of small and medium-sized businesses.

Late on Tuesday, the metro Adelaide, Gawler and Adelaide Hills areas were declared commonwealth hot spots, unlocking the federal government’s Covid-19 disaster payments of up to $600 a week for affected individual workers in those areas.

Treasurer Rob Lucas has now announced the state government will match dollar for dollar this level of support for workers outside those hot spots – primarily in regional SA: “Our commitment will ensure South Australian workers whose hours are affected by the current lockdown will be supported, regardless of whether they work in Mitcham or Mount Gambier, Norwood or Nuriootpa, West Beach or Whyalla.”

A virtually empty Rundle Mall at 10.15am on Tuesday. Picture: Michael Marschall

Lump sum payments of $375 will be available to workers who lose between eight and 19 hours of work a week, and $600 for those who lose 20 or more. The help is paid in arrears each week for as long as restrictions are in place.

All affected workers can apply for the help through myGov from next Wednesday.

Applications are expected to soar as SA becomes the third state currently in lockdown.

Prime Minister Scott Morrison revealed 70,000 claims were already being lodged each day, with $32m paid out on Wednesday alone.

SA’s $100m business support package will give businesses that lose significant income during the lockdown the opportunity to receive a $3000 emergency cash grant – but applications may take as long as two weeks to open.

To be eligible, the business must be registered for GST, have a payroll of less than $10m and lose at least 30 per cent in turnover during the restrictions. Sole traders with no staff can get $1000 in aid.

The state government was seeking clarification from Mr Morrison’s office on whether microbusiness – with an annual turnover of less than $75,000 – were eligible for the Covid-19 disaster payment.

“This is an immediate lifeline for small and medium businesses that are the lifeblood of our community and underpin our economy,” Mr Lucas said.

The support would cover the first seven days initially, but if the lockdown is extended, the state government “will make further announcements in relation to levels of ongoing assistance”.

.@Birmo has announced federal Covid-19 Disaster Payments will be on offer for SA workers affected by this week’s lockdown, after Prof Paul Kelly declared greater metro Adelaide a Commonwealth ‘hotspot’ @theTiser#saparli#auspolpic.twitter.com/HSXWmEiVLe

— Gabriel Polychronis (@G_Polychronis) July 20, 2021

Opposition treasury spokesman Stephen Mullighan welcomed the announcement, but put pressure on Mr Lucas to ensure there are no delays in businesses getting grants: “The government must put immediate additional resources into processing their applications.”

Business SA boss Martin Haese also welcomed the package, but noted “nothing will entirely offset the losses incurred by a seven-day lockdown, other than to be open for trade”.

SA Property Council executive director Daniel Gannon labelled the $100m fund a “shot in the arm” for small businesses across the state.

“It is also heartening to see the state government match federal support for those outside the Commonwealth declared hot spots,” Mr Gannon said.

[e-mail]

Originally published as Covid-19 income support extended to all of SA, and new $100m business lifeline announced