As New South Wales ends its third week in lockdown and moves into week four many businesses are feeling the stress caused by this disruption to their operations. Many different grants have been announced over the last few weeks and with the first opening for application on Monday 19 July we have added a summary of what we know below.

2021 covid19 NSW business grant

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.  

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. 

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.

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 open on Monday 19th July, which is when we expect to be provided with more about the eligibility criteria and expected payment dates.

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.   

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.

how much

These payments will be $1,500 per fortnight of restrictions.

who is eligible

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

when will payments start

Applications for this grant will open in late July, which is when we expect to be provided with more about the eligibility criteria and expected payment dates.

JobSaver scheme

The government announced an extra support package to kick in from the fourth week of lockdown aimed at saving jobs. This grant is jointly funded by the NSW and commonwealth governments but will be administered by the NSW government.

how much

The cash boost will be 40% of weekly payroll, with a minimum payment of $1,500 and a maximum payment of $10,000 per week.

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

who is eligible

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

  • A decline in revenue of 30% or more
  • An annual turnover between $75,000 and $50 million

Businesses also need to maintain all of their employees as at July 13 2021 to be eligible. The definition of this has not been fully provided yet, at this stage there is only reference to ‘head count’ which would be the number of employees.

How decline in revenue will be calculated has not yet been confirmed, we are expecting more details from Monday 19 July.

when will payments start

This has also not been confirmed yet.

covid19 disaster payment

The Covid19 disaster payment is a federal initiative that is only for employees who have had their income impacted due to a restricted movement order. It is claimable via myGov and is being administered by Centrelink. The eligibility rules differ for each state.

how much

For the first and second period of a restricted movement order:

  • $325 per week if you lost less than 20 hours work per week
  • $500 per week if you lost 20 or more hours work per week

In NSW for the third and later periods of a restricted movement order:

  • $375 per week if you lost 8 to 20 hours work per week
  • $375 per week if you lost a full day of your usual work hours per week
  • $600 per week if you lost 20 or more hours work per week

who is eligible

To be eligible you need to be impacted by a Restricted order movement. In NSW these orders started at different dates depending on your location.

Eligibility will begin from 15 July for parts of Sydney and 18 July for people in Greater Sydney. You can find specific details are here.

when will payments start

Applications for this are open now via myGov and payments should be made within a week of eligibility.

other support in NSW

There is a range of other incentives for businesses impacted by the current Covid19 lockdown in NSW including:

payroll tax

  • Businesses can opt in to defer payments on the 2020-21 annual reconciliation return and wages paid in July and August. These payments can be deferred until 7 October 2022.
  • There will also be interest free repayment plans for up to 12 months that can be applied for.
  • For businesses with grouped Australian wages up to $10million and a revenue decline of 30%, they can apply for a 25% reduction in their 2021-22 payroll tax. [More information will be provided by the end of August 2021].

residential landlord grant & land tax relief

Landlords with tenants in distress may be eligible for a land tax concession if they provide rent reductions to their tenants. The concessions are either $1500 grant to pass on to tenants or a concession of up to 100% of the 2021 land tax. The concessions need to be passed on in full as rental relief.

To be eligible the tenants must have lost 25% or more of their income.

This is available for rent reduction made from now until 31 December 2021.

no evictions without mediation for commercial properties

Landlords will not be able to evict or lock out impacted tenants without first going to mediation. To be eligible tenants must have an annual turnover of $50 million or less and must be eligible for either the Micro-business Covid19 Support Grant, the Covid19 Business Grant or the Job Saver Scheme.

commonwealth business tax relief

The federal government has announced that it will provide businesses in NSW additional support by making NSW small business grants, including the new small business payments tax exempt.

We know a lot of these grants have not yet issued all of their rules, eligibility and payment details. As always when we know more we will keep you updated, make sure that you sign up for any further details here.

If you would like 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.