With more measures announced yesterday, 14th July 2021, we’ve summarised what financial support will be available from the NSW Government post the devastating outbreak and corresponding lockdowns, restrictions and stay-at-home orders.
If your business or not-for-profit organisation has been impacted, you may be eligible to apply for a number of assistance measures from 19 July 2021.
1. Business Grants
Business Grants of up to $15,000 are available depending on your decline in turnover (these payments were announced previously, but the amounts have increased) to cover the first three weeks of restrictions.
Applications are NOW Open, click here to start your application.
The 2021 COVID-19 business grant will be open to NSW businesses who have less than $10 million in total wages at 1 July 2020 and aggregated annual turnover between $75,000 and $50 million for the year ended 30 June 2020.
The grant program will be administered by Service NSW, and businesses must prove they have suffered a decline in turnover over a minimum two-week period from 26 June 2021 to 26 July 2021 compared with the same period in 2019.
Three different grant amounts will be available depending on the decline in turnover experienced over a minimum 2-week period from 26 June 2021 to 17 July 2021, compared to the same period in 2019:
- $7,500 for a decline of 30% or more
- $10,500 for a decline of 50% or more
- $15,000 for a decline of 70% or more.
As part of the eligibility requirements, a letter from a business’s qualified accountant, registered tax agent or registered BAS agent will need to be provided to Service NSW, verifying the appropriate decline in turnover. Contact us today if you need assistance here.
What you need for the application
- a MyServiceNSW Account
- your proof of identity
- your valid ABN/ACN number
- your business banking details for payment
- Australian income tax return or Notice of Assessment
- qualified accountant, registered tax agent or registered BAS agent details.
There is additional evidence and tests required, especially if your business is on the highly impacted industries list. To ensure you've got it all covered, the full details on eligibility and tests is available here.
2. Cashflow Boost payments
Applications for JobSaver will open from Monday 26th July and will see businesses and not-for-profits receive 40 per cent of their weekly payroll, at a minimum of $1,500 and a maximum of $10,000 per week, as long as they maintain their full-time, part-time and long-term casual staffing level as of 13 July.
Non-employing businesses, such as sole traders, can expect $1,000 payments per week.
The JobSaver payment will be paid out on a fortnightly basis by Service NSW and will be backdated to 18 July 2021 — week 4 of the Greater Sydney lockdown.
Businesses must have a turnover of between $75,000 and $50 million for the year ended 30 June 2020, and demonstrate a decline in turnover of 30 per cent or more over a minimum two-week period from the start of the Greater Sydney lockdown on 26 June, compared with the same period in 2019.
Service NSW acknowledges that some businesses will not meet the eligibility criteria but may still be eligible for JobSaver.
Those with alternative circumstances, including new businesses, or those who were operating under unusual trading conditions in 2019, have been asked to contact the agency directly to ascertain their eligibility.
In line with the business grant program, businesses in highly impacted industries will be required to provide details of their qualified accountant, registered tax agent or registered BAS agent for compliance checking, while businesses outside the highly impacted industries list will be required to produce a letter from their practitioner that verifies their decline in turnover.
Letters used for the business grant program can be resubmitted.
Apply for the JobSaver payment by clicking here.
The 40 per cent weekly payroll calculation will be determined by referring to item W1 in the most recent BAS lodged with the ATO prior to 26 June 2021 for the 2020–21 financial year. Businesses will then need to deduct any amounts withheld on behalf of contractors under voluntary agreements.
The amount will then need to be divided by the number of days in the BAS period and multiplied by 7 to calculate the weekly payroll amount, said Service NSW.
Businesses that do not submit a BAS or have no W1 amount will be required to use the ATO’s definition of W1 to calculate their payroll for April or May before dividing it by the number of days in the month and multiplying it by 7.
Head over here for detailed guidelines of the COVID-19 JobSaver payment.
3. Micro Businesses
Applications for the micro-business grant will open on Monday 26th July. Businesses with an annual turnover between $30,000 and $75,000 will be eligible for a fortnightly payment of $1,500 if they have experienced a decline in turnover of 30 per cent or more since the start of the lockdown.
They must not have applied for either the 2021 COVID-19 Business Grant or the JobSaver scheme.
The grant will be paid in arrears, with the first payment backdated to 26 June.
Employees can receive the Commonwealth COVID-19 Disaster Payments even if their employer is receiving JobSaver or the micro-business grant.
Sole traders or non-employing businesses are not eligible for additional assistance if they are receiving the COVID-19 Disaster Payments.
If your micro-business does not meet all the eligibility criteria, you may still be able to apply for the grant. See the alternative circumstances outlined in the guidelines.
Don’t miss out!
Click here to sign up on the NSW Government website to get notified as soon as the COVID-19 financial support programs are available.
Avoid delays in completing your applications by:
- ensure your business and contact details are up-to-date with the Australian Business Register (ABR)
- ensure your personal, contact and business details are up-to-date in your MyServiceNSW Account and your business profile
- if you don't have one, create a MyServiceNSW Account and business profile.
Other Support Announced:
- Payroll tax waivers of 25 per cent for businesses with Australian wages bills of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover, as well as payroll tax deferrals and interest-free repayment plans.
- Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords, up to 100 per cent of the 2021 land tax year liability.
- A requirement on landlords to participate in mediation before taking actions to evict or lockout tenants.
- An increase in the payment amount for stood down workers from $500 to $600 per week for those who lost more than 20 hours, and to $375 for those who lost between 8 and 20 hours, and available to workers outside of the Greater Sydney lockdown areas.
- Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2021.
- A $75 million support package for the performing arts sector to be administered by Create NSW.
- A $26 million support package for the accommodation sector.
- Expanded mental health services with programs targeted at young people and CALD communities.
Please get in touch with your accountant if you need any assistance in determining your eligibility or applications.