Business Updates

2021 COVID-19 NSW Grants and Financial Assistance

By Paolo Coniglio, 21.07.2021

NSW COVID-19 Grants and Financial Assistance

The feared second wave of COVID-19 has recently hit Australia and in particular New South Wales. With the number of positive cases on the rise, restrictions on trades have progressively tightened across the State.

In response to the damaging impact on small businesses, the NSW Government has announced a new support package for Businesses impacted by the current lockdown.​

NSW Businesses can apply to receive a range of Grants and Financial Assistance depending on their size and operations. The 2021 COVID-19 NSW Support Package includes the following:

  1. 2021 COVID-19 Business Grant
  2. 2021 ​Covid-19 micro-business support grant
  3. JobSaver Incentive Scheme
  4. Small Business fees and charges rebate
  5. Payroll Tax Support

The NSW Government hasn’t yet provided detailed information on the application processes or the eligibility criteria for some of these Support Schemes.

2021 COVID-19 NSW Business Grant

The 2021 COVID-19 Business Grant is a one-off Grant available to Businesses with an annual turnover between $75,000 and $50 million per annum that are registered or operating in New South Wales.

The Grant payment varies, based on the Business decline in turnover:

Tier 1 – A one-off Grant of $7,500 will be paid to eligible businesses that have suffered a decline in GST turnover between 30% and 50%

Tier 2 – A one-off Grant of $10,500 will be paid to eligible businesses that have suffered a decline in GST turnover between 50% and 70%

Tier 3 ​- A one-off Grant of $15,000 will be paid to eligible businesses that have suffered a decline in GST turnover of 70% or more.

Information on the application process and eligibility criteria are included in our 2021 COVID-19 NSW Business Grant blog article.

2021 COVID-19 Micro Business Grant

Similar to the COVID-19 Business Grant, this Grant ​is available to Businesses with an annual turnover between $30,000 and $75,000 per annum that are registered or operating in New South Wales.

The Grant pays eligible businesses $1,500 per fortnight.

Eligibility Criteria

  • Eligible businesses must meet a decline in turnover of 30% or more.
  • The Business must prove the revenue generated from its activities represents the primary income source for the person associated with the business.

As of 21 July 2021, Service NSW has not yet provided any specific guidelines on the application process or on how to assess or prove the required eligibility criteria.

Applications for this grant are planned to start at the end of July 2021.

JobSaver

The JobSaver scheme is a program designed to help the continuation of employment during the lock-down period.

The scheme plans to pay eligible businesses 40% of their weekly payroll cost, with a minimum of $1,500 per week and a maximum of $10,000 per week.

Eligible Sole Traders, not employing staff, can receive $1,000 per week.

Eligibility Criteria

The Scheme is available ​to Businesses with an annual turnover between $75,000 and $50 million per annum that are registered or operating in New South Wales.

Eligible Businesses must

  • prove they have experienced a decline in revenue by 30% or more;
  • maintain their Employees’ headcount at the same level as of 13 July 2021.
    Note: this means the total number of Full-Time, Part-Time employees employed in New South Wales and all Casual Employees employed for more than 12 months as at 13 July 2021.

As of 21 July 2021, Service NSW has not yet provided any specific guidelines on the application process or on how to assess or prove the required eligibility criteria.

Similarly to the micro-business grant, applications for this incentive scheme are planned to start at the end of July 2021.

Small business fees and charges rebate

Small Businesses may apply for a rebate of $1,500 to help them pay Government Fees and Charges.

The Rebate is available to Businesses registered in NSW, including Sole Traders, Companies and Not for Profit.

The Rebate can be used to cover costs of eligible NSW and local Government charges due and paid from 1 March 2021, such as:

  • food authority licenses
  • liquor licenses
  • tradesperson licenses
  • event fees
  • council rates

A full detailed list of all eligible Government Fees and Charges is available on the NSW Service Website.

The Rebate cannot be used to pay fines, penalties, taxes or rent on Government premises.

Eligibility Criteria

The Rebate is available to NSW Businesses that have a total of Australian wages below the NSW Government 2021 Payroll Tax Threshold ($1.2 Million). Businesses will need to provide Wages Reports to support their application.

https://www.service.nsw.gov.au/small-business-fees-and-charges-rebate-guidelines

https://www.service.nsw.gov.au/small-business-fees-and-charges-rebate

Pandemic Leave Disaster Payment

This payment applies to Sole Traders who are required to self-isolate, quarantine or live or care with someone who is required to self isolate due to COVID-19, making them unable to work. The payment is a one-off lump sum of $1,500.

Eligibility Criteria

Eligible Sole Traders must satisfy the following criteria:

  • Be 17 years old or older;
  • Live in New South Wales;
  • Be an Australian Citizen, Australian Resident or have a valid working VISA;
  • Prove to be unable to work and consequently earn an income;
  • You are not able to access paid leave entitlements from an employer.

Sole Traders can apply through their MyGov Account > Services Australia (Centrelink).

https://www.servicesaustralia.gov.au/individuals/services/centrelink/pandemic-leave-disaster-payment-new-south-wales

https://www.servicesaustralia.gov.au/individuals/subjects/getting-help-during-coronavirus-covid-19/if-you-need-payment#guide

Payroll Tax Support

Businesses that are required to pay Payroll Tax in New South Wales can access a number of Payroll Tax deferrals or concessions depending on the level of impact experienced during the lockdown period.

Payroll Tax Deferrals

Businesses can apply to defer the lodgement of the Annual Payroll Reconciliation Return due on 28 July 2021 and for the payments (not lodgements) for:

  • July 2021 (due 7 August 2021)
  • August 2021 ​(due 7 September 2021)
  • September 2021 ​(due 7 October 2021)

The due date for the above payments can be extended up to 7 October 2022.

Payroll Tax Concessions

Businesses reporting Australian wages expenses up to $10 million per year, which have experienced a decline in turnover of 30% or more can apply for a 25% Payroll Tax Reduction for the 2021-22 Financial Year.

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#covid-19-micro-business-grants

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

https://www.service.nsw.gov.au/campaign/covid-19-help-businesses/fee-waivers-and-tax-assistance

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

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.

 

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