Canberra businesses can expect to receive support grant payments "within the next few days" as frustration grows over how long it is taking for the applications to be processed.
Key points:
- 3,750 applications for Business Support Grants had been lodged by August 31
- Businesses are frustrated at how long it is taking to receive the payments
- The ACT government says it is the largest grants process it has ever undertaken
But businesses are yet to see any cash hit their bank accounts as the government faces the herculean task of administering the largest grants program it has ever undertaken.
Canberra Martial Arts and Fitness founder Tom Adam said businesses had been kept in the dark about whether their applications had even been accepted and called for more transparency around the process.
Mr Adam, who is also the president of the Phillip Business Community, said many businesses had faced the added cost of engaging an accountant to help them tackle the "overwhelming, confusing and complicated" application process.
He called for more consultation with industry sectors to see how the process could be streamlined and hastened, however he understood the need to "fraud proof" the system.
Payments delayed by incomplete applications, government says
An ACT government spokeswoman said the payments would be made within the next few days, which was "weeks ahead of the equivalent NSW program".
She said 3,750 grant applications had been lodged as at August 31 and the "first several hundred" had already been approved.
"The speed of payments is assisted by complete applications with all the necessary details being submitted," she said.
While the government is working to deliver payments within 30 days on average for a correctly lodged application, many would receive theirs "well ahead" of this timeframe, she said.
Currently, a team of 60 assessors is reviewing applications in "the largest grants process the ACT government has ever undertaken".
"With applications open until October 7 and thousands of applications received to date, the assessment process is likely to take a number of weeks," the spokeswoman said.
"The ACT government is procuring additional financial expertise to bolster these resources and ensure this processing effort can be sustained over the weeks ahead."
The government has also put out an urgent tender for companies to help review the applications, which Mr Adam feared may cause further delays.
Grants will allow businesses to 'tread water' until the end of the lockdown
Canberra Business Chamber CEO Graham Catt encouraged businesses to register for a one-hour workshop being held today from 10:00am, which will walk businesses through the application process and requirements.
The initiative is being held in partnership with the Canberra Region Business Enterprise Centre.
Mr Catt said the doubling of the support grants and the easing of restrictions for small businesses in recent days had been "gratefully received" by the sector.
"The support grants will allow businesses to tread water for another couple of weeks," he said.
"But I think the minds of most business owners are turning to what happens after September 17, when we may not be under lockdown but we may be operating under extended restrictions.
Mr Catt said examples of this could include initiatives like the commercial leases and residential tenancies declaration announced by Chief Minister Andrew Barr's yesterday that offer greater protection for tenants impacted by the lockdown.
"Further information on government tax incentives, tied to reductions in rent for commercial and residential tenants through rates and land tax schemes, similar to those implemented last year, will be announced in the coming days," Mr Barr said.
In the longer term, if the lockdown dragged on, Mr Catt suggested a wage subsidy scheme – like the JobSaver payment that had been introduced in NSW – could be considered in the ACT.
Canberra hairdresser says sole traders have been 'left out in the cold'
Brooke Varova, who owns the Rockabilly Boutique hairdressing salon in Fyshwick, also felt the payment of support grants was taking too long.
"It took two weeks before we could even apply for the grant, which was too long when we have bills to pay," she said.
However, her biggest concern was that as a sole trader, she was not able to receive both the Business Support Grant and the federal government-administered COVID-19 Disaster Payment, which is $750 per week for those who have lost 20 hours or more of work a week.
"I had to apply for the Disaster Payment because I had to feed my kids while I wait to see whether I get the Business Support Grant and I am now getting $750 a week," Ms Varova said.
"But I have been told by Services Australia I will have to pay that back if I get the grant.
"This is unfair because if I was a registered company, I would be able to get the $750 a week to support my home life as well as the grant to pay my business expenses.
"What am I supposed to do about paying my mortgage and feeding my children when I have already used up all of my savings?
Ms Varova's partner Alex is also a sole trader and has only been able to do three "emergency jobs'" during the lockdown so she said they had had hardly any money coming into the household.
Services Australia has been contacted for comment.
Businesses can look forward to summer revival, Barr says
Mr Barr said businesses could look froward to an "amazingly strong rebound" in the first half of 2022, given the "extraordinary" disposable income of many Canberrans.
"Not every Canberran but on average, we're the highest income earners in Australia," Mr Barr said.
"So it's really tough now but the future, based on last year and based on what's happened everywhere else, is that the rebound will be incredibly strong.
"There will be a lot of pent up demand, people will be desperate to go out to dinner, to go to the shops, to spend."
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