Closure of Impacted Business Grant WA

Purpose and Program Overview

The Closure of Impacted Business Grant WA is a Western Australian Government initiative. It provides financial help to businesses that relied heavily on the native timber industry and are now closing. This non-competitive grant program helps eligible businesses with costs linked to business closure. This includes professional advice and closure activities. It supports a smoother and more responsible transition for affected businesses and owners. The program is managed by the Department of Jobs, Tourism, Science and Innovation (JTSI), as part of the broader Native Forest Transition Plan.

With a total funding pool of $1 million, the program offers grants of up to $50,000. It uses a two-stage application process. It helps businesses exit an affected sector in a responsible way. This maintains economic stability in communities affected by the change. It also supports mental health and legal needs during the transition. The Western Australian Government committed $80 million to the overall Native Forest Transition Plan to support workers, businesses, and regional communities.

This grant aligns with Western Australia’s native forest transition policies. The state ended commercial-scale native timber harvesting in January 2024. The grant helps businesses adjust to industry changes. It also promotes economic diversification and well-being within the state.

Key Grant Details

• Grant amount: Up to $50,000 per business.
• Application open: 1 July 2024.
• Application close: 31 December 2025 (midnight AWST).
• Eligible industries/business types: Western Australian businesses with a reliance on the native timber industry. This includes businesses where at least 50% of the inputs used in manufacturing or 50% of the revenue came from native timber.
• Co-contributions: Not required.
• Location/state/territory applicability: Western Australia only.

Priority Sectors

Closure of Impacted Business Grant targets explicitly businesses with a substantial reliance on the native timber industry. It focuses on those affected by the transition away from native forestry operations. It supports a broad range of business types within this affected sector.

Funding Scope

The grant offers support through two stages:

• Stage 1 – Business Closure Schedule: Up to $5,000 is available. These funds provide professional support. It can cover financial, accounting, legal, or well-being advice. This support helps businesses decide to close and develop a closure schedule. Funds are paid to the business directly after the application is approved.
• Stage 2 – Closure Activities: Up to a further $45,000 is available. Businesses that successfully complete Stage 1 can access these funds. This covers approved closure activities identified in the business closure schedule. These funds are reimbursed upon provision of tax invoices for actual expenses.
• Project timeline: Funding must be used during the business closure process. This must be done within the program guidelines and before the closing date.

Grant Amount in Total

A total funding pool of $1 million is allocated for this program. This is part of the larger $80 million Native Forest Transition Plan.

Eligibility Criteria

• Must be a Western Australian business.
• Must have operated within the native timber industry for at least three years prior to, and at the time of, the announcement (8 September 2021).
• Must hold a valid and active Australian Business Number (ABN) or Australian Company Number (ACN).
• Business must show at least 50% reliance on the native timber industry over at least one financial year between 2019-2020 and 2021-2022. This means either 50% of the inputs used in manufacturing came from native timber, or 50% of the business revenue came from goods or services from the native timber industry.
• Must be registered for GST with a minimum turnover of $75,000.
• Must not have pending litigation or insolvency processes.
• Must not have received funding through any other Native Forest Transition grants (e.g., Workforce Transition Program, Small Business Development and Diversification Program).
• Business owners/directors must not hold multiple businesses where the majority of their income is generated outside the eligible business. Applications are assessed on a case-by-case basis if other ABN/ACN numbers are held.
• Trusts may apply if they are incorporated and can enter a funding agreement with the State Government; an eligible trustee may apply on behalf of a trust.

Eligible Activities and Expenses

• Stage 1:
  • Initial ‘health check’ assessment by an accredited financial and/or accounting specialist to review financial data and advise on business feasibility.
  • Accredited financial and accounting advice specific to activities needed to close the business.
  • Legal advice for issues related to contracts, employee relations, or property due to business closure.
  • Counselling services for mental health and well-being support for owners during closure.
• Stage 2:
  • Activities related to business closure include the sale or disposal of equipment and machinery.
  • Lease termination activities.
  • Business deregistration fees.
  • Other approved closure-related expenses are assessed on a case-by-case basis.

Ineligible Activities/Expenses include: Payments of company debts or accrued payments owed to owners, staff redundancy and leave liability payments, tax and statutory payments, purchase of equity, assets or inventory, salaries/employment of new or existing staff, advertising, and office upkeep.

Assessment Process

This is a non-competitive grant program. It uses a two-stage online application process via the SmartyGrants portal.

• Stage 1 Assessment: Assesses applicants for initial eligibility and approval for up to $5,000 for professional support to develop a business closure schedule.
• Stage 2 Assessment: Businesses that successfully complete Stage 1 are invited to apply. This stage assesses claims for reimbursement of approved closure activities (up to $45,000).
• Applications are assessed for compliance with program guidelines and eligibility criteria. Support materials, such as financial records and evidence of native timber reliance, are important for assessment.

Recent Updates of the Closure of Impacted Business Grant

Applications opened on 1 July 2024. They will continue to be accepted until 31 December 2025, or until funds are exhausted. There is an ongoing emphasis on supporting smooth business transitions and mental health support during closure. Program information and application portals are active via the Western Australian Government and Native Forest Transition platforms.

Application Tips

• Gain a detailed understanding of eligibility criteria. Pay close attention to native timber reliance and business registration status.
• Gather all financial and operational records. These should show industry reliance and turnover thresholds.
• Engage accredited financial or legal advisors early. They can help prepare business closure schedules and plans.
• Keep all invoices and documentation for reimbursement claims under the closure activities stage.
• Submit applications promptly to get funding before the program closes or funds are used.
• Maintain open communication with program administrators. They can provide guidance and answer compliance questions. Contact the Native Forest Transition team at NFTEnquiries@swdc.wa.gov.au or phone (08) 9777 1555.

Where to Get Help

Consider consulting with a professional grant specialist like Pattens Group. We provide expert assessments of your business’s eligibility. We also help align your closure plans with grant objectives. Visit the Western Australian Government and Native Forest Transition websites for official application forms and guidelines.