NSW COVID-19 Support package

 

NSW COVID-19 Support package

Following the Disaster Payment Support announced by the NSW Government, the Federal Government and NSW Government have recently announced a further combined COVID-19 Support Package for businesses and individuals impacted by the current COVID-19 lockdown. This update will primarily focus on the support available to small and medium businesses to date.

2021-07-15

Updated on 30 July 2021

COVID-19 business grant (refer to detailed criteria below)

  • Tax exempt grants between $7,500 and $15,000 are available to eligible businesses with annual wages up to $10 million, to cover the first three-weeks of restrictions

  • Three different grant amounts will be available depending on the decline in turnover experienced during 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.

Micro business grant (refer to detailed criteria below)

  • Grants up to $1,500 per fortnight of restrictions will be available under a new grants program for micro businesses with annual turnover between $30,000 and $75,000 which experience a decline in turnover of 30% or more.

JobSaver (refer to detailed criteria below)

  • From week four of lockdown, the Federal Government will help fund the cost of a new business support payment for entities with annual turnover between $75,000 and $250 million (up from $50 million) who can demonstrate that their turnover is 30% lower than an equivalent two-week period in 2019

  • Eligible businesses, including not-for-profits, will receive payments equivalent to 40% of their ‘weekly payroll’[1] for work performed in New South Wales:

    • The minimum payment will be $1,500 per week, and

    • The maximum payment will be $100,000 per week (up from $10,000).

  • Eligible non-employing businesses (e.g. sole traders) will receive a set payment of $1,000 per week

  • To receive the payment, eligible entities will be required to maintain their full time, part time and long-term casual staffing levels as of 13 July 2021

  • This payment made to eligible businesses will be tax exempt.

Other Measures

  • Businesses will also benefit from payroll tax waivers of 25% for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover

  • Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords, up to 100 per cent of the 2021 land tax year liability

  • No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation. 

Detailed Criteria

NSW COVID-19 business grant 

Applications open from 19 July 2021 to 13 September 2021

Basic Criteria 

Alternative Circumstances

Other requirements
(Evidence in support of eligibility)

  • Have an Australian Business Number (‘ABN’) and operate in NSW as at 1 June 2021

  • Have total annual Australian wages[2] of $10 million or less as at 1 July 2020

  • Have a national aggregated annual turnover[3] between $75,000 and $50 million (inclusive) for the year ended 30 June 2020

  • Have business costs for which there is no other government support available

  • Maintain employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme

  • Decline in national turnover[4] – at a minimum 2-week period from 26 June 2021 to 26 July 2021, compared to the same period in 2019.

  • Businesses operating in NSW with their ABN registered elsewhere may still access the grant if they can provide evidence that their business was operating in NSW as at 1 June 2021. Evidence includes, but not limited to:

    • Commercial rates notices

    • Lease arrangements

    • Utility bills, Insurance papers, Supply invoices, Registration papers, Contractor licences, etc.

  • Businesses that cannot meet the $75,000 aggregated annual turnover threshold or the decline in turnover threshold may still be eligible for the Grant if:

    • They were not operating for the full year in 30 June 2020 but can demonstrate their income consistent with $75,000 per annum over a shorter period prior to 26 June 2021 and they can demonstrate that they have been significantly impacted by the Public Health Orders; or

    • Their turnover in June/July 2019 was not a representative of their usual or average turnover which is usually $75,000 per annum or more, and they can demonstrate they have been significantly impacted by the Public Health Orders.

  • Businesses on the ‘highly impacted industries list[5] applying for the $7,500 and $10,500 grants are required to: 

    • Declare that they meet the eligibility criteria

    • Provide details of their qualified accountant, registered tax agent or registered BAS agent

    • Submit an Australian Income Tax Return or other documentation to demonstrate their business meets the aggregated annual turnover threshold; and

    • Lodge other supporting documents to demonstrate that they meet eligibility criteria.

  • In addition to the above, businesses on the ‘highly impacted industries list’ applying for the $15,000 grant and businesses outside the ‘highly impacted industries list’, must also submit evidence, in the form of a letter provided by a qualified accountant, registered tax agent, or registered BAS agent, using the specified template provided, that the business experienced the relevant decline in turnover in the specified period.

 

NSW COVID-19 micro-business grant

Applications open from 26 July 2021 to 18 October 2021

Basic Criteria 

Alternative Circumstances

Other requirements
(Evidence in support of eligibility)

  • Have an active ABN and operate in NSW as at 1 June 2021

  • Have a national aggregated annual turnover between $30,000 and $75,000 for the year ended 30 June 2020

  • Decline in national turnover (30% or more) – at a minimum 2-week period from 26 June 2021 to 30 July 2021, compared to the same period in 2019

  • Have business costs for which there is no other government support available

  • Have not applied for the 2021 COVID-19 business grant or JobSaver scheme

  • Maintain employee headcount as at 13 July 2021 for the period for which the business is receiving grant payments

  • For non-employing businesses, ensure that the business receiving payments is the primary source for the associated person

  • Additional criteria: ensure that the business does not fall within the list of ineligible businesses (e.g. entities that primarily earn passive income like rents, interest or dividends). [6]

  • Micro-businesses operating in NSW with their ABN registered elsewhere may still access the grant if they can provide evidence that their business was operating in NSW as at 1 June 2021. Evidence includes, but not limited to:

    • Commercial rates notices

    • Lease arrangements

    • Utility bills, Insurance papers, Supply invoices, Registration papers, Contractor licences, etc.

  • Businesses in the following circumstances that do not meet the eligibility criteria may still be eligible for JobSaver:

  • Businesses not operating for the full year in 30 June 2020 (e.g. new businesses)

  • Businesses affected by drought, bushfires or other natural disasters

  • Business acquisition, disposal or business restructure that has impacted turnover

  • Sole trader or small partnership impacted by sickness, injury or leave.

  • Declare that the business meets the eligibility criteria

  • Submit evidence that the business meets the decline in national turnover threshold in the form of a:

    • Letter from a qualified accountant, registered tax agent or registered BAS agent, or

    • Business bank account statement

  • Submit evidence that the business meets the national aggregated annual turnover threshold for the year ended 30 June 2020 in the form of a:

    • Letter from a qualified accountant, registered tax agent or registered BAS agent, or

    • Business activity statement, or

    • Business bank account statement, or

    • Australian Income Tax Return (or Notice of Assessment)

  • Lodge other supporting documents to demonstrate that they meet eligibility criteria. 

 

NSW JobSaver criteria 

Applications open from 26 July 2021 to 18 October 2021

Basic Criteria 

Alternative Circumstances

Other requirements
(Evidence in support of eligibility)

  • Have an active ABN and operate in NSW as at 1 June 2021

  • Have a national aggregated annual turnover between $75,000 and $250 million (inclusive) for the year ended 30 June 2020

  • Decline in national turnover (30% or more) – at a minimum 2-week period from 26 June 2021 to 30 July 2021, compared to the same period in 2019

  • Maintain employee headcount as at 13 July 2021 for the period for which the business is receiving JobSaver payments

  • For non-employing businesses, ensure that the business receiving payments is the primary income source for the associated person[7]

  • Additional criteria: ensure that the business does not fall within the list of ineligible businesses (e.g. entities that primarily earn passive income like rents, interest or dividends).[8]

  • Businesses operating in NSW with their ABN registered elsewhere may still access the grant if they can provide evidence that their business was operating in NSW as at 1 June 2021. Evidence includes, but not limited to:

    • Commercial rates notices

    • Lease arrangements

    • Utility bills, Insurance papers, Supply invoices, Registration papers, Contractor licences, etc.

  • Businesses in the following circumstances that do not meet the eligibility criteria may still be eligible for JobSaver:

    • Businesses not operating for the full year in 30 June 2020 (e.g. new businesses)

    • Businesses affected by drought, bushfires or other natural disasters

    • Business acquisition, disposal or business restructure that has impacted turnover

    • Sole trader or small partnership impacted by sickness, injury or leave.

  • Businesses on the ‘highly impacted industries list’ applying for JobSaver are required to:

    • Declare that they meet the eligibility criteria

    • Submit an Australian Income Tax Return (or Notice of Assessment or other appropriate documentation such as BAS lodgements) to demonstrate their business meets the national aggregated annual turnover threshold for the year ended 30 June 2020

    • Provide details of their qualified accountant, registered tax agent or registered BAS agent

    • Provide evidence of weekly payroll

    • Lodge other supporting documents to demonstrate that they meet eligibility criteria.

  • In addition to the above, businesses not on the ‘highly impacted industries list’, must also submit a letter from a qualified accountant, registered tax agent or registered BAS agent, using the template provided, to demonstrate that the business meets the decline in national turnover threshold.

 Click here to download

 

How we can help

Many businesses have found the eligibility criteria difficult to navigate, particularly for newer businesses without 2019 records.

Our experts can guide you through the process and help you gather accepted relevant documentation to ensure your business gains the maximum benefits from these support measures.

Leo Luan

E lluan@sw-au.com

 

Tim Hogan-Doran

thogan-doran@sw-au.com

Helen Wicker

hwicker@sw-au.com

 

Tony Principe

E tprincipe@sw-au.com

Jae Debrincat

E jdebrincat@sw-au.com

 

Dilushi Wijesinghe

E dwijesinghe@sw-au.com

 

[1]  ‘Weekly payroll’ can be determined by referring to Item W1 in the most recent Business Activity Statement (‘BAS’) provided to the Australian Taxation Office prior to 28 June 2021 for the 2020-21 financial year.
[2] For businesses grouped by Revenue NSW, ‘total annual Australian wages’ should be calculated using the rules set out by Revenue NSW. Businesses not grouped should apply the ownership grouping provisions under the Payroll Tax Act 2007.
[3] The Australian Taxation Office income assessment concept of ‘aggregated annual turnover’ will be applied.
[4] The Australian Taxation Office Goods and Services Tax (‘GST’) concept of ‘decline in turnover’ will be applied.
[5]  https://www.service.nsw.gov.au/2021-covid-19-business-grant-guidelines#attachment-a-list-of-highly-impacted-industries 
[6] https://www.service.nsw.gov.au/2021-covid-19-micro-business-grant-guidelines#attachment-a-ineligible-businesses
[7] If the associated person has more than one non-employing business, payments can only be claimed for one business.
[8]  https://www.service.nsw.gov.au/jobsaver-payment-guidelines#attachment-b-ineligible-businesses