Your Guide To The COVID-19 Business Grant For NSW Businesses
It's Sunday afternoon when I write this and the guidelines have just been released for the Covid-19 Business Grant, for which applications open tomorrow. I am feeling like next week is going to be a big week. To help as many businesses as possible, as quick as possible and as cost effectively as possible I have put together this guide for you to gain an understanding of:
what's on offer
the eligibility requirements,
the evidence required to support your application; and
the application process
Accounting Heart support packages
I have included links to everything you need to know to complete your application and our service packages to assist you with either any or every step of the process.
What's on offer?
A grant of up to $15,000 will be available from 19 July 2021 for businesses with an aggregated turnover of more than $75,000 and less than $50 million (for the year ended 30 June 2020) impacted by the current Greater Sydney Covid-19 restrictions. This is open to all businesses in NSW that have been impacted by the restriction.
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
Businesses will have until 13 September to apply for the Grant.
If you would like to self-assess your decline in turnover you can use our decline in turnover calculator. Furthermore, if you are a Xero user and you want to know how to display your turnover for a selected fortnight you might like our video How to run a P&L report in Xero (both cash and accruals options are included). The definition of urnover for the purposes of calculating the decline is the same as the ATO’s definition of GST turnover. If you would like our help to calculate your decline in turnover please see our Covid-19 Business Grant support packages.
Is my business eligible?
Aside from the turnover requirements there are several other conditions that must be met, namely:
have an Australian Business Number (ABN) and were operating in New South Wales as at 1 June 2021;
have total annual Australian wages of $10 million or less as at 1 July 2020;
have business costs for which there is no other government support available;
have experienced a decline in turnover of 30% or more due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 26 July 2021 compared to the same period in June and/or July 2019; and
maintain your employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme.
Special rules apply for Victorian border towns who were impacted by the Victorian stay at home orders. The comparison period starts on 27 May 2021.
What evidence do I need?
The documentation requirements depend on:
The dollar amount that you are eligible for, and
If your business is of a type that is listed on the highly impacted industries list (refer to Attachment A in the Grant guidelines to see if you fall into this category)
If your business is of a type listed on the highly impacted industries list AND you have suffered a decline in turnover of less than 70% OR you have suffered a decline in turnover of more than 70% and are only seeking the $10,500 Grant then you will need to:
declare you have experienced the required decline in turnover due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019;
for Southern Border businesses the turnover period is from 27 May 2021 to 17 July 2021 compared to the same period in May and/or June and/or July 2019.
declare you have eligible expenses for which no other government support is available. You will not be required to provide evidence of costs on application (e.g. invoices) but will need to keep evidence of costs for a possible future audit;
declare your employee headcount at 13 July 2021;
declare you will maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme;
provide details of your qualified accountant, registered tax agent or registered BAS agent for possible compliance checking. For clients of Accounting Heart, our Registered Tax Agent number is 25417334;
submit an Australian Income Tax Return (or Notice of Assessment) or other documentation to demonstrate their business had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020. For clients of Accounting Heart this can be downloaded from our client portal; and
lodge other supporting documents as required to demonstrate that you meet the eligibility criteria (if you do not meet the standard tests).
If your business is on the highly impacted list and has suffered a decline in turnover of more than 70% OR is not on the highly impacted list and has suffered a decline in turnover of 30% or more then:
You will need a letter from one of the following:
qualified accountant as defined in the Corporations Act 2001
registered tax agent as defined under the Tax Agent Services Act 2009; or
registered BAS agent as defined under the Tax Services Act 2009.
Accounting Heart is both a qualified accountant and registered tax agent and can therefore assist clients with this requirement. If you require an accountant's letter please see our Covid-19 Business Grant support packages.
How do I complete the application process?
Unfortunately we cannot manage the application process for you, in the same way as previous support. This is because the support is delivered via Service NSW and not the Australian Tax Office. We are however here to assist.
If you are confident in completing the process yourself and don't have a business profile set up, follow the steps in our resource Creating a Service NSW Business Profile.
You will then complete your application through the Service NSW website from 19 July 2021.
If you would like us to guide you through the process over Zoom then please refer to our support packages.
Support packages to help you
We appreciate that this is an overwhelming and stressful time. We also appreciate that not everyone has the budget for full-service assistance, while at the same time not everyone has the appetite for dealing with government departments. To help you navigate the Covid-19 Business Grant we have packages from 10 minute consultations to us guiding you through the whole process and being on Zoom while you complete your application.
When you select a support package you will be requested to pay for the service upfront. Once your payment is complete we will be notified, you won't need to contact us. When we have completed the work we will be in touch. Naturally if you have any questions or concerns please do not hesitate to contact us.
The packages we have to assist you are:
Support package 1: Can we talk about it first?
If you have any questions about the Grant, or your eligibility before you complete the online application process, we are here to support you. Book a 10 minute consultation and pay with your credit card at the time of booking.
Support package 2: Decline in turnover assessment
We calculate your decline in turnover to determine if you are eligible for assistance. We ask that if Accounting Heart does not do your bookkeeping, that you bring your bookkeeping up to date in order for us to complete the assessment.
Support Package 3: Accountant's letter
If you are confident that your decline in turnover is correct and you just need us to do a quick check of your calculation and letter from us to confirm, then this is for you. We will provide you with a letter in the required format to comply with Service NSW requirements. Please use our decline in turnover calculator and provide us with a print out prior to us completing this service for you.
Support Package 4: Decline in turnover assessment and accountant's letter
If you know that you will qualify for the grant, but aren't confident with the calculations then this service is for you. In addition to what is provided above we will also supply you with a fresh, easy to access link, to your 2020 income tax return that is stored on our client portal.
Support package 5: Grant application support consultation
Do you get overwhelmed dealing with government websites and would like our help to navigate your grant application? We will be on Zoom with you to guide you through the entire process. Make sure you have your identification documents (driver's licence, passport and Medicare card on hand) prior to the call.
If you are using the Service NSW app to sign into venues you will already have a Service NSW account.
Please make sure you also have your login details handy prior to the call.
When you pay for your consultation, we will be in touch to schedule a time to complete your grant application.
Support package 6: Can you just do it for me?!
We can! We will:
Calculate your decline in turnover
Provide you with your accountant's letter
Provide you with a fresh link to your 2020 tax return on the Accounting Heart client portal, for easy access
Be there with you on Zoom as you complete the application process
On booking this service we will be in touch to schedule a time for your call.
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.