Week 5 of the NSW lockdown has kicked off with both the JobSaver Scheme and the 2021 Covid19 micro business grant opening for applications. After a week of rapidly increasing tensions, the state government has been under growing pressure and scrutiny to do more for business and people impacted by lockdowns, and they will be looking to JobSaver to earn them brownie points. But will it be enough?

The actual impact of JobSaver will depend on the size of your organisation.

The capping at $10,000 per week will be little relief for many businesses that incur substantially high costs, even when the doors are closed. The delay in funds coming in via the grants [and the information businesses needed to plan] has meant many businesses are already struggling.

Updated as of 28 July, as anticipated above this amount was not enough and is now $100,000.

This delay in details and announcements has also seen many business owners jump in for the disaster payments, which depending on their situation, may mean they are now ineligible for any other payments, especially for sole traders.

So whilst it is probably not enough [and our leaders absolutely need to do better], at this stage JobSaver and the NSW Covid19 business grants are the only options until any further announcements are made.

To help you take advantage of what currently is available, we have summarised what we now know about these two most recent grants below.

JobSaver Payment

The JobSaver payment is designed to support businesses [including sole traders and not for profits] that have been impacted by recent Covid19 restrictions.

This grant is jointly funded by the NSW and Commonwealth governments but will be administered by the NSW government and although it sounds familiar, it is very different to its predecessor JobKeeper.

The aim of this scheme is to provide cash flow support to impacted businesses to maintain their employee headcount as of 13 July 2021.

Applications are open now and will close at 11.59pm on 18 October 2021.

when will payments start?

Employers will receive fortnightly payments backdated to cover costs incurred from week 4 [18 July] of the Greater Sydney lockdown.

JobSaver can be used to cover costs incurred from 18 July 2021 including salary and wages, utilities, rent, and other business costs.

how much?

The cash boost will be 40% of weekly payroll, with a minimum payment of $1,500 and a maximum payment of $100,000 per week.

Non-employing businesses such as sole traders will receive $1,000 per week.

To determine weekly payroll, you should refer to the most recent BAS lodged before 26 June 2021.

who is eligible?

These payments are available to businesses, sole traders, and not for profits with:

  • An ABN that was operating in NSW as of 1 June 2021
  • A decline in revenue of 30% or more due to the Public Health Order that commenced in Greater Sydney on 26 June 20201
  • An annual turnover between $75,000 and $250 million.

For most NSW businesses the decline in turnover is calculated by comparing revenue for a minimum 2-week period from 26 June 2021 to 30 July 2021 to the same period in June and/or July 2019.

If your business does not meet all the criteria, you may still be able to apply if you can provide evidence of alternative circumstances, including if your business was not in operation in June/July 2019

The decline in turnover is calculated by comparing a revenue for a minimum 2-week period from 26 June 2021 to 28 August 2021 to the same period in 2019, 2020 or the two-week period immediately before locked commenced [11-25 June 2021]. 

Employees can receive Commonwealth COVID19 Disaster payments if their employer is receiving JobSaver.

who is not eligible?

Entities earning passive income [rent, interest, dividends], government agencies, banks, and universities are not eligible.

If you are an associate of a non-employing business which you derive income from and you have applied for, or are receiving the Commonwealth COVID19 Disaster Payment, you will not be eligible for JobSaver.

A full list of ineligible businesses are in the guidelines here.

how do I apply?

Businesses will need to apply online on the service NSW website, and you will need:

  • Your personal proof of identity – you will need to be an authorised representative for your business on the Australian Business Register [ABR].
  • Your business ABN/ACN
  • Your business banking details
  • Your 2020 business income tax return or Notice of Assessment
  • Evidence of your annual turnover and loss of income
  • The details of your qualified accountant registered tax agent or registered BAS agent.
  • To provide evidence of your weekly payroll
  • Details of your employee headcount as of 13 July 2021 [and you will need to commit to maintaining this employee headcount]
    • For the purposes of this grant, employee headcount means the number of persons who are employed in New South Wales and who are permanent [full-time or part-time], or casual staff that have been employed by the business for more than 12 months.

If your business is not on the highly impacted industries list you will also need to submit a letter from a qualified accountant, registered tax agent, or registered BAS agent to demonstrate that you experienced the required decline in turnover.

Businesses that operate through a trust will need to provide additional information to demonstrate turnover is derived through the trust.

Businesses that have an ABN registered outside of NSW will need to provide evidence their business was operating in NSW on 1 June 2021 including utility bills, insurance papers, lease agreements etc.

NSW micro business COVID-19 support grant

The NSW Micro business grants are once-off payments to small businesses or sole traders that have been impacted by the current lockdown.

Applications are open now and will close at 11.59 pm on 18 October 2021.

how much?

These payments will be $1,500 per fortnight of restrictions and can be used to cover costs incurred from 1 July 2021 including salary and wages, utilities and rent, and other business costs

who is eligible?

Small businesses and sole traders with an annual turnover of more than $30,000 and less than $75,000.

These payments are available to businesses, sole traders, and not for profits who:

  • Had an ABN that was operating in NSW as of 1 June 2021
  • Had a decline in revenue of 30% or more due to the Public Health Order that commenced in Greater Sydney on 26 June
  • Have not applied for the COVID 19 business grant or the JobSaver payment
  • [If a business with employees] Maintain their 13 July 2021 headcount
  • [If you are a non-employing business such as a sole trader], this business must be your primary income source.

For most NSW businesses the decline in turnover is calculated by comparing revenue for a minimum 2-week period from 26 June 2021 to 30 July 2021 to the same period in June and/or July 2019.

If your business does not meet all the criteria, you may still be able to apply if you can provide evidence of alternative circumstances, including if your business was not in operation in June/July 2019.

The decline in turnover is calculated by comparing a revenue for a minimum 2-week period from 26 June 2021 to 28 August 2021 to the same period in 2019, 2020 or the two-week period immediately before locked commenced [11-25 June 2021]. 

Employees can receive Commonwealth COVID19 Disaster payments if their employer is receiving JobSaver.

who is not eligible?

Entities earning passive income [rent, interest, dividends], government agencies, banks, and universities are not eligible.

If you an associate of a non-employing business which you derive income from and you have applied for, or are receiving the Commonwealth COVID19 Disaster Payment, you will not be eligible for JobSaver.

A full list of ineligible businesses are in the guidelines here.

how do I apply?

Businesses will need to apply online on the service NSW website, and you will need:

  • Your personal proof of identity, you will need to be an authorised representative for your business on the Australian Business Register [ABR].
  • Your business ABN/ACN
  • Your business banking details
  • Your 2020 business income tax return or Notice of Assessment
  • A business activity statement [BAS]
  • Evidence of your annual turnover and loss of income
  • The details of your qualified accountant, registered tax agent or registered BAS agent.

If your business is not on the highly impacted industries list you will also need to submit a letter from a qualified accountant, registered tax agent or registered BAS agent to demonstrate that you experienced the required decline in turnover.

Businesses that operate through a trust will need to provide additional information to demonstrate turnover is derived through the trust.

2021 covid19 NSW business grant [updated]

The NSW Covid19 business grants are once off payments to businesses in NSW that have been impacted by the current lockdown. They are designed to cover the first three weeks of restrictions and the details have changed since the original announcement.

Updated information was released regarding these grants on Sunday 18 July, and here is what we know now: 

how much

The grant amounts have increased since the original announcement, they are now:

  • $7,500 for a business with a 30% decline
  • $10,500 for a business with a 50% decline
  • $15,000 for a business with a 70% decline

who is eligible

These payments are available to businesses, sole traders and not for profits with:

  • An ABN that was operating in NSW as of June 1 2021
  • A decline in revenue of 30% or more
  • An annual turnover above $75,000
  • An annual payroll of less than $10mil

For most NSW businesses the decline in turnover is calculated by comparing revenue for a minimum 2-week period from 6 June 2021 to 17 July 2021 to the same period in June and/or July 2019.

For most NSW businesses decline in turnover is calculated by comparing a revenue for a minimum 2-week period from 26 June 2021 to 17 July 2021 to the same period in 2019, 2020 or the two-week period immediately before locked commenced [11-25 June 2021]. 

Businesses on the Victorian border can compare a minimum 2-week period from 26 May 2021 June 2021 to 17 July 2021 to the same period in 2019. 

Businesses on the Victorian border can compare a minimum 2-week period from 27 May 2021 to 17 July 2021 to the same period in 2019, 2020, or the two-week period immediately before locked commenced [12 May to 26 May 2021].

The NSW government has also indicted those businesses that were not operating in June/July 2019 may still be eligible, however no further details have been provided about this process. At this stage businesses that fall into this category have been encouraged to contact Service NSW to discuss eligibility.

Service NSW has now released rules to guide businesses that were not operating in 2019 to allow them to apply for the grant if eligible, please contact us to discuss your options.

If you are an associate of a non-employing business which you derive income from and you have applied for or are receiving the Commonwealth COVID19 Disaster Payment you will not be eligible for the NSW Covid19 business grants.

when will payments start

Applications for this grant have opened and will close after 11.59pm on 13 September 2021.

how do I apply 

Businesses will need to apply online on the Service NSW website, and you will need:  

  • Your personal proof of identity, you will need to be an authorised representative for your business on the Australian Business Register [ABR].  
  • Your business ABN/ACN 
  • Your business banking details 
  • Your 2020 business income tax return or Notice of Assessment 
  • The details of your qualified accountant, registered tax agent or registered BAS agent. 
  • Details of your employee headcount as of 13 July 2021 [and you will need to commit to maintaining this employee headcount] 
  • For the purposes of this grant, employee headcount means the number of persons who are employed in New South Wales and who are permanent [full-time or part-time], or casual staff that have been employed by the business for more than 12 months. 

If you are eligible for the $15,000 grant, or your business is not on the highly impacted industries list you will also need to submit evidence that you experienced a decline in turnover in the specified period, which includes a letter from a qualified accountant, registered tax agent or registered BAS agent.   

If you would like to read more about what support is available for your business visit our NSW Covid19 Business Support blog here.

To find out more about what this means for you and your business give us a call on 1300BDEPOT or email us at oneplace@businessdepot.com.au.