Small Business Grants

The Hon. J.S. LEE (15:13): My question is directed to the Treasurer about government assistance that supports small businesses during COVID-19. Can the Treasurer please update the chamber on the number of $10,000 grants paid to small businesses as part of the government's job recovery package?

The Hon. R.I. LUCAS (Treasurer) (15:14): I thank the honourable member for the question. As I think I might have indicated to the chamber before, we had approximately 21,000 applications for these $10,000 grants from small businesses and non-government organisations. In some cases, they might have been sporting clubs or other non-government organisations that met the eligibility criteria.

As of yesterday, I think it was, I am advised we have handed out, on behalf of taxpayers, just over $180 million in grants, or just over 18,000 $10,000 grants to small businesses and non-government organisations. I am advised that as of yesterday there are still 1,300 applications which are to be assessed. In many cases, the applicants have been asked to provide further information. I am told the rejection rate may well be higher for the final 1,300 than has been the case thus far because further information has been sought over a period of time to judge whether or not the applicants have met the eligibility criteria.

It would appear that the final number of $10,000 grants is likely to be in and around the original estimate. I pay tribute to the Treasury officers because it was an almost impossible task to try to estimate how many people might be eligible and the difficulties of estimating eligibility are well evident from the federal experience. The only qualification I would make is that we, I am advised, received significantly more small businesses in the approximately 19,000 (we think) eligible applications and a smaller percentage of non-government organisations that met the eligibility criteria.

Whilst the overall number looks like being relatively close to the original estimate, the mix between small businesses and non-government organisations was different to the original estimate, which therefore means that more money is being expended out of the business and jobs growth fund and less funding out of the community and jobs growth fund. I am in the process of transferring some funds out of the community and jobs growth fund into the business and jobs growth fund because of the tremendous demand for funding out of the business and jobs growth fund.

Whilst the overall aggregate, at this stage, in those two funds will stay the same, I am in the process of making a change in terms of the relative allocation between the two funds. I am advised that in the next week or so hopefully the final 1,300 applications will be finally assessed as to whether they are eligible or not, and that will be the conclusion of one important element of the jobs recovery package, which is the expenditure of close to $190 million of taxpayer funds in trying to support a significant number of small businesses in the state.

I note, because questions have been asked before, we were not able to afford to support every small business in the state. There were eligibility requirements which excluded certain categories of small businesses. We concentrated the funding of taxpayers' money on those that actually employed people and met other eligibility criteria as well.