Closure of Impacted Business Grants (Australia)

The WA Government’s $80 million Native Forest Transition Plan ensures affected workers, businesses and regional communities are supported through the transition.

The funding is provided through three program pillars – the Workforce Transition Program, the Business Transition Program and the Industry and Community Development Programs. The Department of Jobs, Tourism, Science and Innovation (JTSI) administers the Native Forest Transition Plan and associated funding.

The Closure of Impacted Businesses program is a $1 million non-competitive grant program that aims to help any business reliant on native timber to exit the industry.

Funding Information

• Financial assistance will be offered through a two-stage online application process with:
  • Stage 1 – Business Closure Schedule: eligible businesses are invited to apply for up to $5,000 to seek professional support that may include financial, accounting, legal or wellbeing services that support the decision to close and the development of a business closure schedule. Applicants will need to demonstrate eligibility and provide details regarding the professional services they wish to engage.
  • Stage 2 – Closure Activities: Businesses that have applied for Stage 1 and been deemed eligible will then be invited to apply to access up to a further $45,000 to undertake the specific approved activities identified in their business closure schedule. Funding will be reimbursed on the provision of tax invoices for approved expenditure items.

Ineligible Funding

• The following organisations are ineligible for funding:
  • Local, State, or Federal Government Authorities/Agencies, Government Trading Enterprises (GTEs) and Individuals (without an ABN).
  • Trusts that are not incorporated and are unable to enter into a funding agreement with the State Government. (A trustee may apply on behalf of a trust where it meets the eligibility requirements set out above).
  • Businesses that have been successful in receiving funding from another Native Forest Transition grant; and
  • Businesses located outside of Western Australia.

Eligible Activities 

• Activities eligible for funding assistance
  • An initial ‘health check’ assessment by an accredited financial and/or accounting specialist to review your financial data and provide advice on the business’ feasibility to continue.
  • Accredited financial and accounting advice specific to activities required to close the business.
  • Legal advice to assist with any issues specific to contracts, employee relations and/or property matters as a result of closing the business.
  • Counselling services to assist owners with mental health and wellbeing support during the business closure process.
  • Activities as part of business closure such as the sale/ disposal of equipment/ machinery, lease termination activities and other closure activities which will be assessed on a case-by-case basis.
  • Any business deregistration fees.

Ineligible Activities

• The following activities are ineligible:
  • Payments of company debts or any accrued payments owed to owners;
  • Staff redundancy and leave liability payments;
  • Payments of tax and statutory payments;
  • Purchase of dividends or other distributions of equity to owners;
  • Reimbursement for depreciation of assets;
  • Purchase of land, assets or inventory;
  • Salaries/employment of new or existing staff; and
  • Advertising and office upkeep.

Eligibility Criteria

• Must be a Western Australian business operating within the native forestry industry for at least 3 years prior to, and at the time of the announcement on 8 September 2021.
• Business must have a valid and active ABN or ACN and not have any pending litigations or insolvency processes underway.
• Business must be able to demonstrate a 50% or greater reliance on the native timber industry over at least one financial year from 2019/2020 to 2021/2022, with at least:
  • 50% of inputs used in manufacturing processes be from native timber; or
  • 50% of business revenue derived from the sale of goods or services from the native timber industry.
• Must be the only business held by the business owners/directors. Where business owners/ directors hold additional ABN or ACN numbers, applications will be assessed on a case-by-case basis to ensure the majority of their income (i.e. 50%) is derived from the eligible business.
• Must be registered for GST with a minimum turnover of $75,000.
• Must not have received funding through any other Native Forest Transition grant program.

For more information, visit Government of Western Australia.