Small Business Recovery Grant Guidelines

The objective of this joint Commonwealth and South Australian Government assistance measure, is to support small businesses (excluding Farm Enterprises) and not-for-profit organisations directly affected by the 2022-23 high water flows on the River Murray.

The Small Business Flood Recovery grant application period is open until 31 December 2023. Extensions of the grant program may be considered by the Treasurer.

Small Business Flood Recovery Grants are intended for small business owners and not-for-profit organisations to help pay for costs of clean-up and reinstatement of small businesses and not-for-profit organisations that have experienced direct damage as a result of the eligible disaster.

The maximum grant amount for clean-up and reinstatement is $50,000.

• An initial claim amount of up to $25,000 is available.
• A subsequent claim amount of up to $25,000 is available.

Note: multiple applications can be made up to the maximum amount available under the Small Business Flood Recovery Grant Program.

Grants are provided to help pay costs associated with reinstatement and clean-up of the small business or not-for-profit organisation, this may include:

• engagement of a tradesperson to conduct a safety inspection of damage to a property, premises, or equipment;
• purchasing, hiring or leasing equipment or materials to clean a property, premises, or equipment;
• purchasing, hiring or leasing equipment or materials that are essential for immediately resuming operation of the small business;
• employing a person to clean a property, premises or equipment if:
  • the cost would not ordinarily have been incurred in the absence of the eligible disaster; or
  • the cost exceeds the costs of employing a person to clean the property, premises or equipment that would ordinarily have been incurred in the absence of the eligible disaster;

• removing and disposing of debris or damaged materials;
• removing and disposing of spoiled goods and stock;
• repairing a building or repairing or replacing fittings in a building for resuming operation of the small business or not-for-profit organisation. If the repair or replacement is for small businesses that are home based, applicants are only permitted to claim the costs for damage to the premises which is directly attributable to the business, not other household damage;
• any of the following:
  • replacing lost or damaged stock for resuming operation of the small business;
  • leasing temporary (up to 12 months) premises for the purpose of resuming operation of the small business or not-for-profit organisation.

An applicant is not eligible for assistance under the scheme:

• if the small business or not-for-profit organisation is entitled to receive or has received an amount under a policy of insurance for the relevant costs claimed; or
• for any expenses that are claimable under the small business owner or not-for-profit organisation’s insurance policy; or
• if the small business owner or not-for-profit organisation has successfully received funding or assistance from any other government source or program or donation in relation to the business, where that funding or assistance has met the relevant costs claimed; or
• for loss of income as a result of the eligible disaster; or
• for payment of employee salaries that would have ordinarily been incurred by the small business had the eligible disaster not occurred.

To be eligible for the grant, the applicant must:

• be a small business owner or not-for-profit organisation;
• hold an Australian Business Number (ABN); or be a registered not-for-profit organisation
• own a small business; or operate a not-for-profit organisation located in the defined disaster area that has experienced direct damage as a result of the eligible disaster;
• have been operating the small business or not-for-profit organisation when affected by the eligible disaster;
• be primarily responsible for meeting the costs claimed in the application; and
• intend to re-establish the small business or not-for-profit organisation in the defined disaster area of the eligible disaster.

Applicants will have to declare that they meet the Eligibility Criteria when applying and provide the following evidence to support the claim:

• For an initial claim: a description of flood-related damage, supported by photographic evidence, quotations, tax invoices or receipts;
• For a subsequent claim: full evidence of payment of expenses incurred under the initial claim is required, including tax invoices and payment receipts. Additional quotations, receipts or tax invoices supporting the amount of the subsequent claim are also required.

Other forms of evidence may be considered on a case-by-case basis to prove financial impact if/when the damage is unable to be photographed or receipts are lost due to the extent of the disaster event.

Applicants must retain all tax invoices, official receipts, bank statements, quotations or other similar records for assistance received under the scheme until one year after the closing day for applications for the eligible disaster.

Applicants must consent to the Commonwealth Government or Department for Industry, Innovation and Science conducting an audit of quotations, tax invoices, official receipts, bank statements or other similar records to verify the amounts given under the scheme have been used in accordance with the claim. Penalties may apply for false or misleading information.

Applicants must provide authorisation for the Department Industry, Innovation and Science to contact their insurance company to confirm or verify entitlements or the outcome of any claims made in relation to the eligible disaster.

Detailed terms and conditions for the Small Business Flood Recovery Grants will be included in the application form.

Defined disaster area means the following Local Government Areas in South Australia for which the Commonwealth and State will fund grants under this program:

• Alexandrina
• Berri Barmera
• Coorong
• Karoonda East Murray
• Loxton Waikerie
• Mid Murray
• Murray Bridge
• Renmark Paringa
• Pastoral Unincorporated Area

Eligible disaster means 2022-23 high water flows on the River Murray commencing 15 November 2022.

Evidence of payment means:

• a tax invoice including the name, address and ABN (if applicable) of the entity that issued the invoice and a description of each item to which the invoice relates and is clearly identifiable as being related to approved expenditure for the applicant and can be related to damage from the eligible disaster
• a receipt including the name and address and ABN (if applicable) of the entity that issued the receipt and a description of each item to which the receipt relates.

Farm Enterprise means a business that primarily carries on the activity of producing crops, livestock, forestry for the commercial production of products for consumers.

Not-for-Profit Organisation means:

• a charity registered with the Australian Charities and Not-for-profits Commission.
• a not-for-profit organisation which provides services to the community and doesn't operate for the profit or personal gain of its individual members, such that profits made must go back into the services the organisation provides and mustn't be distributed to owners, members or other private people- e.g., most sporting and recreational clubs, community service organisations, professional and business associations and social organisations.

Reinstatement means the carrying out of activities that are necessary to help the Small Business or not for profit organisation continue or resume operation/production at a similar level as before the eligible disaster.

Small Business is a business that:

• holds an Australian Business Number (ABN); and
• is not a public company within the meaning of the Corporations Act 2001; and
• employs fewer than 30 full time employees. That is, the sum total of all standard hours worked by all employees (whether full- time or part-time) is less than the number of standard hours which would be worked by 30 full-time employees. Standard hours are 35 hours per week.
• is a sole trader, partnership, private company or trust that carries on a small business and has been trading in 2022-2023 and prior to the eligible disaster event.

A Small Business does not include:

• a public company
• a charitable business as defined by the Charities Act 2013 (refer definition Not-for Profit Organisation)
• a strata or community corporation under the Strata Titles Act 1988 and the Communities Titles Act 1996
• Farm Enterprise (refer definition Farm Enterprise)
• Superannuation Fund
• personal investment vehicle.

The Treasurer of South Australia reserves the right to:

• administer the Small Business Flood Recovery Grants and conduct the process for the assessment and approval of applications to the Small Business Flood Recovery Grants in such manner as he thinks fit.
• change the structure, procedures, nature, scope or timing of, or alter the terms of participation in the process or overall Small Business Flood Recovery Grants (including but not limited to eligibility (including the fewer than 30 full time employee threshold), timeframes, terms and conditions, submission and compliance of applications), where in such circumstances notice will be provided to applicants on the Department for Industry, Innovation and Science’s website; and
• consider or accept, or refuse to consider or accept, any application which:
  • is lodged other than in accordance with these Guidelines; or
  • is lodged after the relevant closing date; or
  • is otherwise non-conforming in any respect.

These Small Business Recovery Grant Guidelines were last updated and on 28 April 2023.