The ongoing 2022 eastern Australia floods have had a catastrophic effect on many individuals’ livelihoods, with damage from the floods expected to reach $1.5 billion. Therefore, the Australian government has introduced a range of disaster relief measures to support businesses that have been affected by these floods. Depending on which category your business falls under, you can apply for a variety of grants and loans of different amounts to help with financial relief. These are in addition to the usual grants for small businesses and COVID-19 rent relief for commercial tenants.
This article outlines the disaster relief measures available in Queensland and New South Wales and how you can claim them.
Many people in Queensland have felt the effects of the flood severely, with South East Queensland being hit the hardest. Accordingly, the Australian and Queensland governments have jointly introduced a range of support measures known as Disaster Recovery Funding Arrangements.
Businesses and Not-For-Profit Organisations
This table outlines some of the grants and loans available to businesses and not-for-profit organisations that have been affected by a natural disaster.
|Recovery Grants||This grant provides up to $50,000 with $15,000 paid upfront and the balance paid if needed upon proof of payment. You can use this grant for recovery activities, such as clean-up, repairing buildings and equipment, and stock replacement.|
|Disaster Assistance Loans||These loans offer up to $250,000 for up to 10 years at a concessional rate. You can use this loan to repair or replace damaged plants, equipment or buildings. You can also use these funds on stock replacement or carry on costs such as rent.|
|Disaster Assistance Loans (Essential Working Capital)||These loans offer up to $100,000 for up to 10 years at a concessional rate. You can use this loan to pay carry on costs such as rent and rates, or pay personnel such as staff and creditors. You can also use it on essential costs such as fuel.|
A primary producer is an entity (such as an individual, trust, partnership or company) that operates a primary production business. This means that they are in the business of:
- plant or animal cultivation (or both);
- tree farming or felling (or both); or
- fishing or pearling (or both).
As a primary producer, you can apply for a special disaster grant of up to $75,000, with $15,000 paid upfront after providing proof of damage, and then a further payment of $60,000 if needed after providing proof of expenditure. You can use this money for different clean up and reinstatement activities, such as salvaging crops and repairing damaged equipment.
Primary producers can also apply for Disaster Assistance Loans and Disaster Assistance Loans (Essential Working Capital) as above.
Sport and Community Clubs and Associations
If your business falls under this category, you can claim a Sport and Recreation Recovery Grant. This grant offers up to $20,000 for eligible clubs and associations to clean up and repair or replace equipment that has been damaged or lost due to disaster.
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New South Wales
The extreme flooding has significantly impacted coastal New South Wales. Thus, the New South Wales government has a range of financial relief and support options available for affected businesses. Many of these are similar to those available in Queensland.
To receive some of these measures, you may require proof of a disaster declaration for your location. These are updated on a rolling basis.
Businesses and Not-for-profit Organisations
If you are a small business or not-for-profit organisation, you may be eligible for a storm and flood disaster recovery small business grant. You can receive up to $50,000, with $15,000 paid upfront and the rest paid if needed upon proof of payment.
You can also apply for Disaster Assistance Loans as discussed above.
You can visit the ATO website for a list of primary production activities to determine whether your business falls into this category.
Then, you can apply for a special disaster grant of up to $75,000, with $15,000 paid upfront after providing proof of damage, and then a further $60,000 paid if needed.
Finally, you can also apply for a disaster relief loan at a concessional interest rate.
Sport and Community Clubs and Associations
Suppose your business is a sporting and recreation club directly affected by flood disasters. In that case, you are eligible for a low-interest rate loan to help meet the costs of restoring facilities and equipment.
You may also apply for a further grant of up to $2000 from NSW Treasury to assist with clean-up and debris removal. To do this, you must contact NSW Treasury via email, which you can do at email@example.com.Continue reading this article below the form
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The Australian government has introduced a range of measures to help mitigate the effects of the ongoing natural disaster. In particular, extensive measures exist in Queensland and New South Wales, as these areas have been affected by the floods to a greater extent. If you are a business owner in these areas, you should visit the QRIDA and Service NSW websites respectively to apply for assistance.
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