NSW COVID-19 Support Measures Alternate Options

The NSW Government has recently highlighted a number of circumstances where certain Businesses may not meet the eligibility criteria for the NSW Government Grant and/or the JobSaver Payment Scheme but may still be able to apply by accessing alternate comparison periods. These include:

• Businesses that were not operating for the full year as of 30 June 2020 (new Businesses);
• Businesses affected by drought, bushfires or other natural disasters;
• Business acquisitions, disposal or business restructure that has impacted the Business’ turnover;
• A Sole Trader or small Partnership impacted by sickness, injury or leave.

New Businesses (Businesses that opened after 2019)

Businesses that opened since 2020 can demonstrate their turnover ranges between $75,000 and $50 million by providing one quarterly Activity Statement or three monthly Activity Statements from 1 July 2020 to 31 March 2021, instead of the 2020 Tax Return. Service NSW will use those figures to calculate their average annual turnover.

They can then use a minimum 2-week period from 1 July 2020 to 31 March 2021 to compare with the period from 26 June 2021 to 17 July 2021.

Businesses that were not operational for the full 2019-2020

Businesses that were not operating for the full year as of  30 June 2020, can use the following alternate periods to assess their GST Decline in turnover:

• a minimum of 2 week period from 26 June 2019 to 17 July 2019;
• a minimum of 2 week period from 26 June 2020 to 17 July 2020;
• a minimum of 2 week period immediately before the Greater Sydney Lockdown commencement date (12 to 25 June 2021).

Businesses affected by 2019-2020 Natural Disasters

If these Businesses 2020 Financial Year Tax Return does not provide a true representation of their regular income, they can provide as evidence of their turnover one of the following:

• The Tax Return for the 2019 Financial Year;
• One Quarterly Activity Statement from 1 July 2020 to 31 March 2021;
• Three Monthly Activity Statements from 1 July 2020 to 31 March 2021.

They can then use the following alternate periods to assess their GST Decline in turnover:

• a minimum of 2 week period from 26 June 2019 to 17 July 2019;
• a minimum of 2 week period from 26 June 2020 to 17 July 2020;
• a minimum of 2 week period immediately before the Greater Sydney Lockdown commencement date (12 to 25 June 2021).

Business acquisition, disposal or restructure

At this stage, Service NSW has not published the alternate options to assess these businesses eligibility criteria. Businesses who fall under this category are encouraged to contact Service NSW on 13 77 88.

A Sole Trader or small Partnership impacted by sickness, injury or leave

There has been very little information available to the public for these particular circumstances. Based on the feedback received, these cases will be reviewed on an individual basis by Service NSW. These Businesses should contact Service NSW on 13 77 88 to discuss their options.

References

https://www.nsw.gov.au/covid-19/rules

https://www.service.nsw.gov.au/campaign/covid-19-help-businesses/grants-loans-and-financial-assistance

https://www.service.nsw.gov.au/transaction/2021-covid-19-business-grant

https://www.service.nsw.gov.au/2021-covid-19-business-grant-common-questions?fbclid=IwAR02smq4cYRKorFMQmzU168tRjL7Gvtcwz3Kqb4Zor6YxdgvdV_TDQaUov8#the-application-process

FAQ-COVID-19-Business-Support

Disclaimer

This blog and attached resources are of general nature designed for informational and educational purposes only. They should not be construed as professional financial advice for your individual business. Should you need such advice, consult a licensed financial or tax advisor.