Federal Treasurer Josh Frydenberg and Tasmanian Premier Peter Gutwein on Tuesday announced that the existing Business Support Package would be raised from $20 million to $50 million, with grants of up to $50,000 to be available to eligible businesses across two funding rounds.
“The $50 million business support package will provide total grants of up to $50,000 based on annual turnover, with two funding rounds, the first in October and the second in November,” said Mr Gutwein.
“Importantly, businesses that have already been deemed eligible for support through the initial $20 million package will automatically receive the next payment in line with the new maximum grant amounts.”
In addition to the expanded grants, the Tasmanian government will also provide around $20 million in financial relief for eligible businesses through waiving fees and charges such as payroll tax, vehicle registration and passenger transport accreditation fees, and licence fees payable to Parks and Wildlife.
“Our additional support also includes payroll tax relief for tourism and hospitality industry businesses where there has been a 30 per cent reduction in turnover in the September 2021 quarter,” said Mr Gutwein.
“Waiving vehicle registration and passenger transport accreditation fees for vehicles including taxis, luxury hire cars, tour operator buses and rental car operators for renewal notices received between July 1 until December 31, 2021.
“And waiving the license fees payable to Parks & Wildlife which removed a significant burden for tourism businesses operating within Tasmania’s Parks.”
Mr Frydenberg said the new package would build on the federal government’s $2.9 billion in direct economic support to Tasmanian households and businesses since the start of the pandemic.
“Tourism and hospitality businesses have done it particularly tough as Tasmania feels the impact of lockdowns in neighbouring states,” he said.
“As we progress towards our vaccinations targets of 70 to 80 per cent, the Morrison Government will continue to work closely with the Gutwein Government to support Tasmanian businesses through this challenging time.
“We will continue to work with the Gutwein Government to ensure the Tasmanian economy bounces back.”
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.