Lockdown support Australia 2021 continues to evolve across the country. As the pandemic unfolds, both individuals and businesses are navigating new government assistance packages, tax implications, and long-term financial strategies. Here’s what you need to know as of August 2021.

For individuals

From 2 August 2021, the COVID-19 Disaster Payment increased to a maximum of $750 per week for individuals who lost 20 hours or more of work due to lockdowns. Those who lost between 8 and 20 hours can now claim $450 per week.

Unlike earlier versions, these payments often apply from day one of a lockdown, depending on your location. To be eligible, you must live in or be impacted by a Commonwealth-declared COVID-19 hotspot, though some states have extended eligibility beyond these zones through additional funding.

These payments form part of the broader Lockdown support Australia 2021 measures intended to protect households during ongoing restrictions.

Business Growth & Succession Planning

As baby boomer business owners approach retirement, Australia is poised to witness one of the most significant transfers of business wealth in its history. Many small and medium-sized enterprises (SMEs) will change hands over the next decade, but without proper planning, some may struggle to realise full value.

There are four key drivers of business value that owners should prioritise now:

• Growth – Buyers pay more for businesses with demonstrated growth potential.

• Capacity – Operational strength and team scalability make your business more appealing.

• Profitability – A solid track record of profits and cash flow is a major value driver.

• Risk Management – Reducing business risk (e.g., reliance on one customer or key person) can significantly increase sale value.

For business owners assessing their future under lockdown support Australia 2021, now is the time to lay the groundwork for succession or sale.

Are COVID-19 grants and funding tax-free?

Many assume government COVID support is tax-free, but that’s not always the case. Under Australian tax law, a payment must be legislated as exempt or non-assessable non-exempt income (NANE) to avoid tax.

Without this legislation, grants, subsidies, or payments are generally considered assessable income and must be included in your tax return. Some key grants, such as JobKeeper, are taxable, while others, like certain state-based hardship grants, have been declared non-assessable non-exempt (NANE).

It’s essential to confirm with your adviser whether your support payments are tax-free, particularly if you’re a sole trader or small business.

Read more: Lockdown support update