QLD Small Business - Flood Assistance Information
Wed Jan 19 2011SMALL BUSINESS (QLD)
Flood Assistance Information
1. Special Disaster Flood Assistance Grant of $25,000 (QRAA)
Tier 1 - Initial Claim of up to $5,000 to assist with early recovery, you will need to be able to show some evidence of damage (e.g. photos, quotes or tax invoices).
Tier 2 - Subsequent Claim of up to $20,000 to recover costs incurred to repair flood damage. Evidence of payment for repairs will be required, including documentation for the initial $5,000 received (e.g. tax invoices, receipts from suppliers or contractors).
To be eligible for this grant you must:
o Be located in one of the following local government areas, Balonne, Banana, Barcaldine, Brisbane City Council, Bundaberg, Central Highlands, Cherbourg, Fraser Coast, Gladstone Regional Council, Goondiwindi Regional Council[i], Gympie, Ipswich City Council, Isaac[ii], Lockyer Valley, Maranoa Regional Council[iii], Moreton Bay, North Burnett, Rockhampton, Scenic Rim, Somerset, South Burnett, Southern Downs, Sunshine Coast, Toowoomba, Western Downs, Woorabinda;
o Have suffered direct damage from the floods;
o You must generate 50% or more of your income from your business;
o You must employ less that 20 full time employees (or full time equivalent employees).
There may be an ability to access the $20,000 prior to expenditure in cases of financial hardship.
Applications must be received by QRAA and work completed by the 30 September 2011.
2. Natural Disaster Relief and Recovery Assistance Loan of $250,000 (QRAA):
A low interest loan of up to $250,000 is available to assist with repairing buildings and plant or replacing stock damaged in floods.
The loan will have an interest rate of 4% per annum and is repayable over 7 years. No fees or charges will apply on the loans.
To be eligible for the loan you must:
o Have sustained substantial damage to buildings, plant, equipment or stock as a result of the flooding and be responsible for the cost of repairs or replacement;
o Demonstrate an inability to repair or replace assets or return to viable operations from your own resources without the assistance;
o Demonstrate that you have used all liquid resources and normal credit sources;
o Demonstrate with the assistance of the loan there are reasonable prospects of re-establishing the business on a viable basis.
3. Disaster Income Recovery Subsidy
This subsidy will provide assistance to employees, small business operators and farmers who lost income as a result of flooding.
This subsidy will provide fortnightly payments equivalent to the maximum rate of Newstart allowance depending on circumstances. (Newstart for a single adult is $470 p/fortnight)
It is not available to anyone already receiving another income support payment or pension such as Age Pension, Newstart Allowance, Service Pension or Exceptional Circumstances Income Relief Payment.
It is for an initial period of up to 13 weeks and is applied for through Centrelink.
This will be a relevant subsidy for employees stood down due to the floods.
4. Employees
Fair Work Australia has information on their website to assist flood affected employers, some of the general information contained in their document “Has your work been affected by floods or other natural disasters?” is:
o If an employee cannot attend work due to floods, you should check the award or agreement for any clauses on natural disasters. Otherwise the employer can decide to approve leave at their discretion and can agree to the employee taking paid or unpaid leave.
o The Fair Work Act 2009 includes provisions that allow an employer to stand down employees, without pay, where they cannot usefully be employed during a period because of any stoppage of work for which the employer cannot reasonable be held responsible, such as a natural disaster. Alternatively the employee’s award or agreement may stipulate that annual leave be taken in circumstances of work stoppage, provided it is reasonable.
o Employees who are entitled to paid personal leave are entitled to take carers leave to provide care or support to a member of their immediate family or household, who requires care or support because of an unexpected emergency. Where an employee has exhausted all of their paid personal leave entitlement or they are casual employees, they are eligible for up to 2 days unpaid carers leave.
Employees are able to claim for the Disaster Income Recovery Subsidy through Centrelink for lost income, provided they are not receiving other income support payments or pensions through Centrelink. It will pay fortnightly up to the maximum rate of the existing Newstart Allowance.
5. Insurance
The general advice appears to be to make a claim for the damage through your insurance policy, as for the QRAA grants you will need to provide the results of any insurance claims available.
You should review your insurance contracts and discuss with your insurance provider if you are covered for business interruption, as this may enable you to make a claim for lost income due to the floods.
6. Banks
Banks are currently advising they can help businesses and individuals with the following services:
o Deferring home loan repayments for up to 3 months;
o Provision of temporary overdrafts;
o Restructuring business loans without incurring fees;
o Giving credit card holders an emergency credit limit increase;
o Refinancing personal loans at a discounted fixed rate;
o Waiving interest rate penalties for early withdrawal of term deposits;
o Deferring monthly payments on equipment finance facilities for up to 3 months.
However, they have advised that they are willing to help where they can, so you should contact your bank to find out what services they can offer that may assist in your circumstances.
7. Australian Taxation Office
The ATO have advised that they are willing to assist taxpayers affected by natural disasters, some of the ways they can assist are:
o Fast tracking refunds;
o Allowing extensions of time to pay debts;
o Allowing extension of time to meet BAS, income tax and other lodgement obligations;
o Reconstruction of tax records destroyed by natural disaster.
The ATO have also advised that taxpayers in flood affected areas with a monthly BAS statement due on the 21 January 2011 will automatically be given an extension to the 21 February 2011.
[i] Goondiwindi – West of Leichardt Hwy
[ii] Isaac – West of Sarina Marlborough Rd, South of Peak Downs Rd & East of Gregory Development
[iii] Maranoa – South of Condamine – Roma Rd and Dunkfield Rd to the Southern Rd and East of Southern Rd – Woodburn Rd, South of Diliqui Rd to Balonne Shire boundary
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