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If your business has been adversely impacted by the recent lockdown in NSW, support is coming.
The NSW and Federal Governments have announced a series of new measures to support business during extended lockdowns of four weeks or more.
- Up to $15,000 through the expanded NSW 2021 COVID-19 business grants program
- Up to $10,000 cashflow support per week
- NSW micro business grants
- NSW payroll tax deferrals and a 25% payroll tax waiver
- NSW Rent protections and grants
- NSW Sector support for the arts and accommodation sector
You can streamline the process of applying for business support by ensuring:
Your business and contact details are up to date on the Australian Business Register
· Your personal and business details are up to date and you have a MyServiceNSW account with a business profile
The previously announced small business grants have been increased to up to $15,000 and expanded to eligible businesses (including not-for-profits and sole traders) with annual wages of up to $10 million.
The value of the grant is determined by the impact of the lockdown on your turnover. Your business will need to prove a decline in turnover across a minimum 2 week period after the commencement of the major restrictions.
The full eligibility criteria, including how the decline of turnover test will be applied, have not been released as yet. In general, your business will need to have a NSW registered ABN or be able to demonstrate it is physically located and primarily operating in NSW with turnover of more than $75,000 per annum (for businesses under this threshold see $1,500 Micro Business Grants).
We will work with you once the details have been released to help you assess your eligibility and apply for the grant.
Applications open on 19 July 2021 through ServiceNSW.
A cashflow payment between a minimum of $1,500 and maximum of $10,000 per week based on 40% of the NSW payroll payments of your business (including not-for-profits).
Businesses without employees that meet the eligibility criteria such as sole traders, will be able to access a payment of $1,000 per week.
The cashflow support will cease when lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.
- Annual turnover between $75,000 and $50 million
- Demonstrate a 30% decline in turnover
- Maintain your full time, part time and long term casual staffing level as of 13 July 2021
- Impacted by the current Greater Sydney COVID-19 restrictions
The full eligibility details, including how the decline in turnover test and how the headcount will work have not been released as yet.
Applications for the cashflow support have not yet opened but you can register your interest from 14 July 2021 through ServiceNSW.
A new grant for micro businesses (including sole traders) providing $1,500 per fortnight while lockdown restrictions apply. The grants are available from week one of the lockdown until restrictions are eased.
- Annual turnover of more than $30,000 and less than $75,000
- Demonstrate a 30% decline in turnover
- Impacted by the current Greater Sydney COVID-19 restrictions
Applications for the cashflow support have not yet opened but you can register your interest from 14 July 2021 through ServiceNSW.
NSW payroll tax has been deferred for July and August 2021 until 7 October 2021 for all businesses.
The due date for the 2020-21 annual reconciliation has also been deferred until 7 October 2021.
Previous payroll tax deferrals and payment arrangements for 2020-21 due in July 2021 have not been deferred.
Businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover, will be provided with a 25% payroll tax waiver in 2021-22. Further details of the reduction will be available by the end of August from RevenueNSW.
Commercial and retail rent protections will be reinstituted.
Legislative amendments will be introduced shortly providing a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19 and meets certain other criteria.
Commercial and retail landlords will need to attempt mediation before recovering a security bond, or locking-out or evicting a tenant impacted by Public Health Orders.
Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants will be available for up to 100% of the 2021 land tax liability.
A $75 million support package will be provided to the performing arts sector to be administered by Create NSW.
The 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.
- Funding available to support eligible organisations to reschedule performances once it is safe for restrictions to ease.
Eligible organisations include performing arts organisations with heavy reliance on box office income, including not-for-profit performing arts companies who were staging, or scheduled to stage performances during the lockdown period, commercial producers and some live music venues.
Organisations will need to provide evidence of performances scheduled, venues and average ticket prices.
CreateNSW will open applications from 23 July 2021.
A $26 million support package will be provided to the accommodation sector.
No further details are available at present.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
What lockdown support is available to individuals?
If you can’t work because you or someone in your household is impacted by COVID-19, support is available.
There are two payments accessible to individuals: the COVID-19 Disaster Payment; and, the Pandemic Leave Disaster Payment.
You can apply for the COVID-19 Disaster Payment and the Pandemic Leave Payment through your MyGov account if you have created and linked a Centrelink account (or phone 180 22 66).
The COVID-19 Disaster Payment is a weekly payment available to eligible workers who can’t attend work or who have lost income because of a lockdown and don’t have access to certain paid leave entitlements. If you are a couple, both people can separately claim the payment.
The disaster payment is accessible if the hotspot triggering the lockdown lasts more than 7 days as declared by the Chief Medical Officer (you can find the listing here). However, from 18 July 2021, the disaster payment will be available to anyone in NSW who meets the eligibility criteria.
The COVID-19 disaster payment amount available depends on:
- How many hours of work you have lost in the week, and
- If the payment is on or after the third period of the lockdown.
The higher payment rate applies if you have lost 20 or more hours of work per week.
* This payment rate applies if you have lost at least 8 hours of work per week or a full day of your usual hours of work per week.
The payment applies to each week of lockdown you are eligible for and is taxable (you will need to declare it in your income tax return).
The COVID-19 disaster payment is emergency relief. It is available if you:
- Are an Australian citizen, permanent resident or temporary visa holder who has the right to work in Australia, and
- Are aged 17 years or over, and
- Can’t attend work and lost income on or after day 8 of a COVID-19 lockdown, and
- Don’t have paid leave available through your employer (other than annual leave), and
- Are not receiving income support payments, a state or territory pandemic payment, Pandemic Leave Disaster Payment or state small business payment for the same period.
A liquid assets test of $10,000 previously applied to the disaster payment but was removed from Thursday, 8 July 2021.
The Pandemic Leave Disaster Payment is for those who have been advised by their relevant health authority to self-isolate or quarantine because:
- They have coronavirus (COVID-19):
- They have been in close contact with a person who has COVID-19:
- They care for a child, 16 years or under, who has COVID-19: or
- They care for a child, 16 years or under, who has been in close contact with a person who has COVID-19.
The payment might also be accessible if you are a carer for someone impacted.
The payment is $1,500 for each 14 day period you are advised to self-isolate or quarantine. If you are a couple, you both can claim this payment if you meet the eligibility criteria.
The Pandemic Leave Disaster Payment is emergency relief. It is available if you:
- Are an Australian citizen, permanent resident or temporary visa holder who has the right to work in Australia; and
- Are aged 17 years or over; and
- Are unable to go to work and earn an income; and
- Do not have appropriate leave entitlements, including pandemic sick leave, personal leave or carers leave; and
- Are not getting any income support payment, ABSTUDY Living Allowance, Paid parental leave or Dad and Partner Pay.
The payment is taxable and you will need to declare it in your income tax return.
If you are uncertain of your eligibility, talk to Services Australia.
If you are concerned about the impact of disaster relief payments on you, talk to us!
A targeted eviction moratorium will be introduced to protect residential tenants who have lost 25% of their income due to COVID-19.
Residential landlords who decrease rent for impacted tenants can apply for a grant of up to $1,500 or land tax reductions depending on their circumstances.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information. If expert assistance is required, professional advice should be obtained.
// Updated 14 July 2021
