Moneyclip
blog

COVID-19 Support For NSW Businesses

If your business has been adversely affected by COVID-19 in the recent restrictions, you may be eligible for support from NSW government if you have been subject to the lockdowns for a period of 4 weeks or more.

COVID-19 Business Grant

This is designed to help businesses, sole-traders, and not-for-profit organisations impacted by the Greater Sydney restrictions, pay for expenses such as rent, utilities, and wages while trading is restricted.

Eligible businesses (with annual wages up to $10 million) can receive up to:

  • $15,000 for a decline in turnover of 70% or more;
  • $10,500 for a decline in turnover of 50% or more; or
  • $7,500 for a decline in turnover of 30% or more.

To receive the payment businesses will be required to prove that they have suffered a decline in turnover across a minimum 2-week period following the start of the lockdown restrictions.

Full eligibility criteria will be provided within the coming days, but businesses will be required to have a NSW registered ABN, or be able to prove that they are physically located and primarily operating within NSW, with a turnover of more than $75,000 per annum. Businesses with turnover of less than $75,000 will instead need to apply for the Micro Business grant.

Applications open on 19th July 2021 via Services NSW.

Cashflow Support of Up to $10,000

Eligible businesses including not-for-profits will be able to apply for a cashflow payment between $1,500 and $10,000 per week based on 40% of the NSW payroll payments of their businesses.

Businesses without employees that meet the eligibility criteria, such as sole traders, will be able to apply for a payment of $1,000 per week. Cashflow support payments will cease when lockdown restrictions are eased, or when the Commonwealth hotspot declaration is removed.

Eligibility

To be eligible businesses must:

  • Have an annual turnover between $75,000 and $50 million;
  • Demonstrate a 30% decline in turnover;
  • Maintain their full time, part time and long term casual staffing levels as of 13th July 2021;
  • Have been impacted by the current Greater Sydney COVID-19 Lockdown restrictions.

Further eligibility details, including how the decline in turnover test and headcount will be assessed will be released in the coming days.

Applicants are encouraged to register their interest form 14th July onwards via Service NSW, so that they are notified when the applications process commences.

Micro Business Grant

Small businesses or sole traders may be eligible for a grant of up to $1,500 per fortnight whilst lockdown restrictions apply.

The Micro Business Grants are available from the first week of the lockdown, until restrictions are eased.

To be eligible for the Micro Business Grant, businesses/sole traders must:

  • Have an annual turnover of more than $30,000 but less than $75,000;
  • Demonstrate a 30% decline in turnover;
  • Be impacted by the current Greater Sydney COVID-19 Lockdown restrictions.

Applicants are encouraged to register their interest via Service NSW, so that they are notified when the business grants applications open.

Payroll Tax Relief

NSW payroll tax has been deferred for July 2021 and August 2021 until 7th October 2021 for all businesses.

The due date for the 2020-2021 annual reconciliation has also been deferred until 7th October 2021.

Previous payroll tax deferrals and payment arrangements for 2020-2021 that were due in July 2021 have not been deferred and remain as due.

Businesses with an Australian Wages of between $1.2 million and $10 million that have experienced a 30% reduction in turnover, will be provided with a 25% payroll tax waiver in 2021-2022. Further details on this reduction will be available at the end of August from Revenue NSW.

Eviction Moratorium

Both commercial and retail rent protections are due to be reinstated.

Legislative amendments will also be introduced which will provide a short-term eviction moratorium for residential tenants who meet the eligibility requirements and have suffered a loss of income of 25% or more, due to COVID-19 restrictions.

Commercial and retail landlords are encouraged to attempt mediation prior to recovering a security bond, or evicting tenants impacted by the public health orders and COVID-19 restrictions.

Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to those tenants who are experiencing financial distress will be available up to 100% of the 2021 land tax liability.

Industry Specific Support

A $75 million support package will be provided to the performing arts sector to be administered by Create NSW. This support package will be delivered in two stages:

  • Immediate support to provide relief to eligible organisations who were staging performances during the period covered by the Public Health Orders; and
  • Funding available to support eligible organisations to reschedule performances once it is deemed safe to do so after restrictions ease.

Organisations such as performing arts organisations, who rely heavily on box office income, including not-for-profit performing arts companies who were staging, or were scheduled to stage performances during the lockdown period, commercial producers, and some live music venues will be eligible.

Organisations will need to provide evidence of performances scheduled, venues and average ticket prices. Applications will open on 23rd July via Create NSW

If you have any questions about your eligibility or how we can assist you, please don’t hesitate to contact us today on accountant@moneyclip.com.au or 02 9299 2292.

Recent Blog Posts

Investing Lessons From The Pandemic

When the coronavirus pandemic hit financial markets in March 2020, almost 40 per cent was wiped off the value of shares in less than a month. Understandably, many investors hit the panic button and switched to cash or withdrew savings from superannuation. With the benefit of hindsight, some people may be regretting acting in haste.

Read More »

A Trusted Investment Vehicle

Family trusts are a popular and effective investment structure to manage and protect your family’s fortune, but you don’t have to be worth a fortune to benefit from having one.

Read More »