NSW Lockdown 2.0: Support For Businesses
As we approach 2.5 weeks into lockdown the NSW and Commonwealth governments have recently made a joint announcement on business support packages. Here is a summary of what’s on offer, when and how to access.
The support that will be delivered via Services NSW is:
COVID-19 Support Grant
This grant of up to $15,000 will be available from 19 July 2021 for businesses with a turnover of more than $75,000 impacted by the current Greater Sydney Covid-19 restrictions. There will be three different grant amounts depending on the decline in turnover during the restrictions:
$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
At the time of writing the full eligibility criteria had not been made available. We will update this blog as more information is provided.
Micro Business Grant
This is a grant of up to $1,500 per fortnight and will be available from late July for businesses with a turnover of between $30,000 and $75,000 impacted by the Greater Sydney covid restrictions. These businesses will need to demonstrate that business income is their only source of income.
At the time of writing the full eligibility criteria had not been made available. We will update this blog as more information is provided.
Saving Jobs
This is a cash boost that will be provided to businesses with a turnover of between $75,000 and $50 million. To qualify the business will need to demonstrate a 30% or more reduction in it’s turnover during the lockdown period. The details known to date are:
payments equal to 40% of weekly payroll
minimum payments being $1,500
maximum payments being $10,000
staffing levels must be maintained
to apply from week 4 of lockdown
The Saving Jobs cash boost will be available to all states that experience lockdowns of four weeks or more.
Again no further details are available at the time of writing and we will update this blog with further details when we have them.
Payroll tax deferral
A payroll tax deferral is available for the September quarter for all businesses, and a waiver for the quarter if you can demonstrate a 30% reduction in turnover where payroll is between $1.2 and $10 million.
Small business fees and charges rebate
If you are a sole trader, the owner of a small business or a not-for-profit organisation in NSW, you may be eligible for a small business fees and charges rebate of $1,500. Eligible businesses or not-for-profits only need to apply for the rebate once, but can submit multiple claims until the full value of $1,500 is reached.
Funds can be used to offset the costs of eligible NSW and local government fees and charges. These include, but are not limited to:
food authority licences
liquor licences
tradesperson licences
event fees
outdoor seating fees
council rates.
The rebate can only be used for eligible fees and charges due and paid from 1 March 2021.
Who is eligible?
To be eligible for this rebate, small businesses (including non-employing sole traders) and not-for-profit organisations must:
have total Australian wages below the NSW Government 2020-2021 payroll tax threshold of $1.2 million
have an Australian Business Number (ABN) registered in NSW and/or have business premises physically located and operating in NSW
be registered for goods and services tax (GST)
provide a declaration that the business has a turnover of at least $75,000 per year.
How do I apply?
To apply, log in or create your MyServiceNSW Account.
If you have any questions or need help in applying for financial assistance please contact us. If you aren't eligible for financial assistance, and are struggling with the impacts of the lockdown, please do not hesitate to get in touch also.
If you would like specific advice tailored to your business and circumstances please contact us.
Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by Accounting Heart Pty Ltd as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and / or other advice as may be appropriate having regard to their particular circumstances.