South Australian Business Creditor Assistance Scheme (Australia)

OneSteel’s business activities include the Whyalla Steelworks, South Australian iron ore mining assets and some related operations.

The Department of State Development (“DSD”), working in collaboration with the Department of Treasury and Finance (“DTF”), will administer the Scheme. The Scheme is designed not to interfere with the administration process that is underway.

Funding Information

• Part 1: South Australian Creditor Assistance
  • Grant funding available:
    • South Australian Businesses that meet the Scheme eligibility criteria and are owed eligible debts by Designated Entities can apply for a grant of up to $5 million per employer group, or the total value of the eligible debt owed, whichever is the lesser.
• Part 2: Whyalla Creditor Assistance – Debts over $5,000
  • Grant funding available:
    • Whyalla Based Businesses that have eligible debts of $5,000 or more owed to them by Designated Entities can apply for an interim payment of up to 50% of the total value of eligible debts owed at the time theDesignated Entities were placed into administration, up to a maximum payment of $1 million per employer group (Tranche 1 of the Grant).
    • Following further verification of the applicant’s application and supporting documentation to determine the applicant’s eligibility for payment under this Scheme, to the satisfaction of SA Government, Whyalla Based Businesses may receive an additional grant payment for the balance of the eligible debt, capped at $5 million per business (including any interim payment) (Tranche 2 of the Grant).

How funding may be used?

• Grants are provided to assist creditors to continue to trade, and should be applied in a manner that best supports the continued operation of the businesses, including payments to creditors, wages for employees or to meet general business costs.
• Applicants who apply for a payment under this Scheme will be required to make a statutory declaration in their application that they intend to continue to operate during the Designated Entities’ administration process, and further commit to making payment of the debts that they owe to their subcontractors.

Eligibility Criteria

• Part 1: South Australian Creditor Assistance
  • To be eligible for a payment under the Scheme, the applicant must:
    • be a legal entity established in Australia (a sole trader, company, partnership, not-for-profit, incorporated associations or corporate trustee of a trust). Incorporated entities must be incorporated in Australia as at 19 February 2025;
    • hold an active ABN as at 19 February 2025;
    • be registered for GST;
    • be a South Australian Business;
    • not be an excluded entity;
    • be owed an eligible debt by a Designated Entity as at 19 February 2025;
    • have submitted a valid and signed proof of debt form to the Administrators of theDesignated Entities (with supporting evidence) (“Proof of Debt”);
    • confirm their intention to continue to trade during the administration process; and
    • enter into a grant agreement on terms and conditions determined by the Treasurer or their delegate.
• Part 2: Whyalla Creditor Assistance – Debts over $5,000b
  • In addition to eligibility criteria outlined under Part 1: South Australian Creditor Assistance, to be eligible for Part 2: Whyalla Creditor Assistance – debts over $5,000, applicants must also:
    • be a Whyalla Based Business.
    • be owed an eligible debt by Designated Entities totalling $5,000 or more.

For more information, visit DSD.