Northern Rivers Commercial Property Return to Business Support Grant – Guidelines

1. About the program

1.1 Northern Rivers Commercial Property - Return to Business Support Grant (Program) is co-funded by the Commonwealth and NSW State Government under the Disaster Recovery Funding Arrangements 2018.

1.2 The objective of this Program is to support eligible commercial property owners in the Northern Rivers who were significantly impacted by the storms and flood disaster events in February and March 2022 (2022 Floods), to help pay costs associated with re-establishment, clean-up and reinstatement of commercial properties to allow for a return to business for tenants and occupants.

1.3 The Program is intended for eligible applicants who have suffered direct uninsured damage as a result of the 2022 Floods. The grant is especially designed to support small to medium business tenants/occupants in their progression towards recommencing trade. Note: the grant is not provided as compensation and is not designed as an alternative to insurance. The funding is intended for repair and replacement if essential for resuming operations.

1.4 The intention of this grant is that tenants occupying the commercial premises immediately prior to the eligible disaster will be re-offered leases of repaired premises as a priority

1.5 To be eligible, the commercial property must be located in one of the following Local Government Areas (LGAs) (Defined Area):

Ballina
Byron
Clarence Valley
Kyogle
Lismore
Richmond Valley
Tweed Shire.

1.6 The Program application period is effective for six months following announcement of the grant and/or any announcements of extensions.

1.7 The maximum grant amount for clean-up and reinstatement is up to $50,000 claimable depending on eligibility as set out in these guidelines.

2. Eligible applicants

2.1 To be eligible for the grant, an applicant who owns a commercial property must meet the following criteria:

a. own commercial premises located in the Defined Area at the time the Eligible Disaster occurred;

b. demonstrates the following occurred at the time of, or in the 6 months prior to, the Eligible Disaster:

i. held a lawful signed and binding commercial lease agreement with a tenant who was operating a small or medium business; or

ii. is both the owner of the commercial property and of the small or medium business that operates at the address; or

iii. can show that the premises were advertised as available for rent.

c. the commercial premises owned by the applicant suffered uninsured direct damage as a result of the Eligible Disaster and provides evidence of that (see 2.8 & 2.9);

d. are primarily responsible for meeting the costs claimed in the application; and

e. intend to repair or otherwise return the commercial premises to a condition which enables the occupancy and recommencement of operations by a small or medium business in the Defined Area.

Note: For the purposes of this Program the following commercial properties are ineligible:

commercial properties owned and operated by national and multinational organisations including:
1. those listed on a public securities exchange (e.g. Australian Securities Exchange), or are wholly or partially (greater than 20%) owned by an entity listed on a public securities exchange; and/or
2. Those that operate in more than one country, or are part of a group which operates in more than one country.

b. mining, primary industry, forestry or fishery commercial properties

c. commercial properties owned by a Superannuation Fund regulated by the Australian Prudential Regulation Authority (APRA) (Except if the applicant is a Self-Managed Superannuation Fund as defined in the Superannuation Industry (Supervision) Act 1993 (SIS) that has its own Tax File Number (TFN) and ABN)

d. commercial properties where there is no premises or buildings at the property address (for example vacant blocks).

2.2 Not-for-Profit Organisations are eligible, if they:

a. Owned commercial property within the Defined Area at the time of the 2022 Floods and meet the eligibility requirements in 2.1;

b. are a Not-for-Profit Organisation;

c. are either:

i. registered with Australian Charities and Non-for-profits Commission (ACNC) or an equivalent State regulatory body and have held that registration as at 22 February 2022; or

ii. registered as an incorporated association or co-operative with Fair Trading NSW were registered on or before 22 February 2022; or

iii. deemed to be a Not-for-Profit Organisation, in accordance with the current Australian Accounting Standards Board (AASB) on or before 22 February 2022.

2.3 An applicant may also be deemed eligible under exceptional circumstances at the discretion of Service NSW and the Department of Regional NSW, in which case additional supporting information may be requested by Service NSW.

2.4 Where an applicant owns multiple eligible commercial properties, they can apply for the grant for each property owned, providing the above criteria is met. A separate application is required for each commercial property a grant is being sought for.

2.5 Where multiple businesses operate at a single commercial property address (such as a shopping centre or arcade), one application can be submitted listing each commercial space occupied by an individual business at that commercial property. However, the criteria set out at 2.1 must be met for each commercial space occupied by an individual business listed in the application.

2.6 An applicant is not eligible if they are claiming costs previously funded by any of the following grant programs:

$50,000 February and March 2022 storm and flood disaster recovery small business grant
$200,000 February and March 2022 storm and flood Northern Rivers Medium business grant
$10,000 Small Business Northern Flood Grant
$75,000 Primary Producer Special Disaster grant for the February 2022 NSW floods
$25,000 Rural Landholders Grant for the February 2022 NSW floods.

2.7 Applications will be determined at the sole discretion of Service NSW. Applicants may be requested to produce further evidence reasonably specified by Service NSW.

2.8 To be eligible applicants must provide evidence of the direct uninsured damage of the 2022 Floods at the time of making the application. NOTE: An Eligible Applicant may claim for any gap between costs covered by insurance and actual costs incurred;

2.9 This evidence must include (mandatory):

a. a list of the direct storm and flood-related damage; and

b. photographic evidence of the direct storm and flood-related damage; (NOTE: see 5.4)

c. certificate of insurance and/or insurance claim outcome determination;

d. proof of ownership of damaged structure, equipment or materials included in the lease agreement with the tenant.

2.10 Evidence may also include (optional):

a. building assessment by a certified building assessor; or

b. depreciation tables.

3. Eligible costs

3.1 Funding may be used to help pay costs associated with re-establishment, clean-up and reinstatement of a commercial property directly impacted by with the 2022 Floods. These eligible costs may include:

a. engagement of tradesperson to conduct a safety inspection of damage to a property, premises;

b. purchasing, hiring or leasing equipment or materials to clean a property, premises, or equipment;

c. purchasing, hiring or leasing equipment or materials that are essential for immediately reinstating the tenant;

d. employing a person to clean a property, premises or equipment if the cost would not ordinarily have been incurred if the flooding had not occurred;

e. removing and disposing of debris or damaged materials related to flood damage;

f. repairing a building, or repairing or replacing fittings in a building, if the repair or replacement is essential for resuming operations and is the responsibility of the applicant/landlord.

3.2 The following costs are ineligible:

a. repairs to a building that is not the commercial property listed in the application;

b. costs already covered by insurance;

c. costs that are not the responsibility of the applicant/landlord

d. costs which are already covered by funding or assistance which the applicant has received from any other government source or program or donation in relation to the 2022 Floods;

e. for loss of income as a result of the 2022 Floods; or

f. for owner's corporation applicants, costs for repair to common property that have been levied against individual lot owners.

4. Application process

4.1 Applicants are requested to refer to the Service NSW website and complete an online application form accompanied by the required documentation before the application closing deadline.

4.2 By applying for this grant applicants are agreeing to Service NSW’s Terms and Conditions.

4.3 By submitting an application, applicants provide authorisation for Service NSW to contact their insurance company and provide details including insurer and policy number, to confirm or verify entitlements or the outcome of any claims made in relation to the 2022 Floods.

4.4 Applicants should seek advice from their legal, business or financial advisers about the tax implications of this financial assistance if they are successful.

5. Claims for costs

5.1 The maximum grant amount an applicant can claim is $50,000, per commercial premises or space, claimable as set out below.

5.2 Eligible applicants may apply for up to $25,000 based on quotes or estimates for eligible costs but do not require Evidence of Payment (see definition below) at the point of application.

5.3 Where applicants seek additional funding beyond $25,000, they must provide Evidence of Payment for all funds claimed, including the first $25,000.

5.4 Funds of between $25,000 to $50,000 will require Evidence of Payment at the time of application.

5.5 Where an applicant has received funding from any other grant (see 2.5), they must provide Evidence of Payment for all funds claimed, including the first $25,000.

5.6 Should an initial application be less than the maximum grant amount, Eligible Applicants may submit claims for costs as required, up to a total of $50,000.

6. Assessment

6.1 Service NSW will assess complete applications in order of receipt. Incomplete applications will not enter the assessment queue until all required information is provided.

6.2 Service NSW will assess applications against the eligibility criteria (eligible applicants and eligible costs).

6.3 Service NSW reserves the right to refuse an application where eligibility criteria are not met, or where the applicant does not or cannot provide sufficient information to determine if eligibility criteria have been met.

6.3 Service NSW and/or its agents may request further information or evidence to help assess an application. Failure to comply with a request for further information or evidence may lead to rejection of an application.

6.4 There will be a consideration process in-place for exceptional circumstances for applicants where major impact and need are demonstrated, in which case additional supporting information may be requested by Service NSW. This process will be at the discretion of Service NSW and The Department of Regional NSW.

6.5 The Department of Regional NSW may conduct site visits to assess the applicant’s eligibility and conduct compliance activities. For example, to assess the extent of 2022 Floods related damage.

7. Compliance

7.1 Service NSW or its agents may audit applications to determine compliance with these guidelines and Service NSW’s terms and conditions.

7.2 By submitting an application, applicants consent to Service NSW or its agents conducting an audit of all tax invoices, official receipts, bank statements, quotations or other similar records to verify the amounts paid under this Program have been used in accordance with these guidelines and the Terms and Conditions. The Applicant also agrees to keep records relating to the application until 7 years after the closing day for applications for the Program.

7.3 Applicants must declare the information provided in their application is true and correct. Penalties may apply for false or misleading information. Where false or misleading information is provided, applicants may be referred to law enforcement.

7.4 Payments under this program will be repayable on demand if any application information is found to be false or misleading, or the grant is not used in accordance with the terms of funding set out in these guidelines.

7.5 Applicants must agree that information and evidence submitted as part of the application may be verified by government agencies such as Service NSW, Department of Customer Service, Revenue NSW and others.

8. Important information

8.1 These guidelines are correct at the time of publishing.

8.2 Department of Regional NSW/Service NSW reserves the right to amend these guidelines at any time as they deem appropriate in their sole discretion.

9. Definitions

Commercial Space means a tenanted space within a larger commercial property, for example a shop or store within a shopping centre or arcade. Where a business occupies more than one shop/space/unit at the commercial property, the commercial property owner will be entitled to one grant for the tenancy (ie the commercial space occupied by an individual business), regardless of the number of spaces/units included in the lease.

Defined Area means the following seven most impacted Local Government Areas (LGAs): Ballina, Byron, Lismore, Kyogle, Richmond Valley, the Tweed shire and Clarence Valley under AGRN #1012.

2022 Floods has the meaning given in clause 1.2

Uninsured Direct Damage means a direct and material impact of storms and floods on assets or equipment that is not covered by insurance or where there was inadequate insurance coverage.

Eligible Applicant has the meaning given in section 2.

Eligible Disaster means the storms and flood disaster events in NSW in February and March 2022

Evidence of Payment means any of the following:

a) an invoice including the name, address and ABN (if applicable) of the entity that issued the invoice and a description of each item to which the invoice relates and is clearly identifiable as being related to approved expenditure for the applicant and can be related to damage from the 2022 Floods.

b) a receipt including the name and address and ABN (if applicable) of the entity that issued the receipt and a description of each item to which the receipt relates

c) a copy of the applicant’s bank transfer and/or bank statement.

Program has the meaning given in clause 1.2.

Reinstatement means the carrying out of activities that are necessary to help a commercial property continue or resume its lease arrangements at a similar level as before the 2022 Floods.

Alternative circumstances

For the purpose of these alternative rules, applicants must be experiencing financial hardship to be considered and may be required to produce evidence accordingly. This means, they:

are at imminent risk of having to sell the property; or
are unable to pay for flood-related repairs to the property; and
have not incurred excessive and non-essential expenses; and
cannot practically rearrange finances or draw upon non-essential assets to repair the flood-related damage.

Proposed alternative circumstances provisions

Alternative circumstances	Acceptable evidence
1. Commercial properties which were completing renovations in order to lease the premises at the time of the event or in the 6 months prior to the event.	Must be able to show that the property was undergoing active renovation at the time of or in the 6 months prior to the flood. Evidence can include (but is not limited to): Tax invoices (with evidence of payment) for works completed and for items installed at the premises during the renovation process. Photos, designs and other evidence substantiating the renovation being completed. Hardware and supply receipts associated with the renovation work. Sale documentation for the premises, in the applicant’s name. Insurance policy information and level of cover details.
2. Commercial premises located on properties zoned for mixed-use (e.g. a mixed-use corner store with adjoining home at an address that is zoned for mixed-use, or a property is primarily used as a tourist/visitor or caravan park, with adjoining residence for the owner) at the time of the event or in the 6 months prior to the event. This excludes short-term letting, room-letting within a single residence and home offices/businesses located within a residential home.	Must be able to show that the property is appropriately zoned for mixed-use and that a business was actively operating on the premises at the time of or in the 6 months prior to the event. Council approval of the commercial premises located at the address. Evidence of mixed-use zoning for the property. Evidence that the space on the property meets the eligibility criteria under 2.1 of the guidelines. Photos, receipts, quotes pertaining to repair and remediation of the shop space.
3. Landlords who were in advanced lease negotiations with tenants at the time of the event.	Must be able to show evidence of a future tenancy agreement with a timeline to move in. Historic correspondence can be provided in addition to further substantiate the legitimacy of the future tenancy agreement. Legally binding agreement that pre-dates the event and commits the parties to a future tenancy agreement. Other proof of lease negotiations with the organisation due to move into the premises. These could be dated contracts, emails, written agreements. Insurance policy information and level of cover details.
4. A single grant for damage to a multiple occupancy commercial premises “common property” or shared facilities (e.g shared bathrooms, lifts, signage, corridors etc.)	The strata/body corporate/sole building owner can apply for one common property grant for the entire building and must be able to evidence the damage incurred to shared elements of the building, and be able to evidence the formal governance arrangements under which it operates for the commercial property. Proof of shared management structure / strata / body corporate arrangements. Where a sinking fund is available, evidence that a portion has been, or will be, put towards remediation of the building's shared elements. Insurance policy information for shared elements of the building Including evidence of insurance claims, expenditure and works completed. Dated invoices for works completed and for items that installed at the premises after the event.
5. Commercial properties where there is a tenanted business with no formal lease is in place, but proof of receipt of regular rent can be provided.	The commercial property owner must be able to evidence the ongoing nature of the tenancy by providing proof of a legal business arrangement despite the absence of a current signed lease agreement. Evidence should include (but is not limited to): Last lease signed between the two parties. Bank statements evidencing regular ongoing payment of rent from the tenant to the landlord. Proof of receipt of rent for more than 12 months prior to the event. Where a contra arrangement is in place in lieu of paying rent, evidence of signed, dated agreements for the contra arrangement must be produced.
6. If a tenanted business is (but not limited to) nationally owned, a chain, publicly listed, or owned by a multinational – the landlord can still apply for the grant provided the tenanted business employed less than 200 FTE across the Northern Rivers at the time of the event, and the landlord themselves meets the eligibility criteria set out for property owners.	The commercial property owner must be able to evidence that the owner of the business had less than 200 FTE across the Northern Rivers at the time of the event. In some circumstances the commercial property owner will need to facilitate engagement between Service NSW and the tenanted business to acquire the necessary information to validate the application. Evidence should include (but is not limited to): System generated payroll reports from the tenanted business. Tenant PAYG/accountant letter verifying number of FTEs across the Northern Rivers LGAs. Clear calculations on how FTE has been determined. Signed lease agreement with tenanted business. Information on the tenanted businesses company structure.

Variations to guidelines

Published date	Summary of changes
30/03/2023	Ineligible applicants updated to include guide for owner’s corporation applicants. Alternative circumstances relating to the eligibility of properties zoned for mixed-use updated.

Note: The list of variations includes changes made to guidelines from 19 September 2022.

Last updated: 30 July 2024