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.

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

NSW COVID-19 micro-business grant

Applications open from 26 July 2021 to 18 October 2021

NSW JobSaver criteria 

Applications open from 26 July 2021 to 18 October 2021

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 [email protected]

Helen Wicker

E [email protected]

Tony Principe

E [email protected]

Jae Debrincat

E [email protected]

Dilushi Wijesinghe

E [email protected]

[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.[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.

[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