In response to the NSW COVID outbreak and lockdown more financial support measures were announced by the Federal and State governments on 13 July 2021 including Small and medium business support payments and Support for Individuals.
We have included the current information as follows and also listed the current NSW Government COVID-19 Support that is available, and other useful links.
Small and medium business support payments
From week four of the lockdown, the Commonwealth will fund 50 per cent of the cost of a new small and medium business support payment to be implemented and administered by Service NSW.
Eligible entities will receive 40 per cent of their NSW payroll payments, at a minimum of $1,500 and a maximum of $10,000 per week.
Entities will be eligible if their turnover is 30 per cent lower than an equivalent two-week period in 2019.
The new small to medium business support payment will be available to non-employing and employing entities in NSW, including not for profits, with an annual turnover between $75,000 and $50 million.
To receive the payment, entities will be required to maintain their full time, part time and long-term casual staffing level as of 13 July 2021.
For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week.
Businesses can register their interest here at NSW Government COVID-19 Business Support
More information about the 2021 Covid-19 Support package is available via this link NSW Government Business & Employment Financial Assistance
The assistance will cease when current lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.
To help avoid delays in completing your application:
ensure your business and contact details are up-to-date with the Australian Business Register (ABR)
ensure your personal, contact and business details are up-to-date in your MyServiceNSW Account and your business profile
if you don't have one, create a MyServiceNSW Account and business profile.
In summary, the existing and upcoming business financial support is:
COVID-19 business grant: if you’re a business, sole trader or not-for-profit organisation impacted by the current Greater Sydney COVID-19 restrictions, you may be able to apply for a grant of up to $15,000 from 19 July 2021.
Saving Jobs: a support program funded jointly by the NSW and Commonwealth governments to maintain employment of staff for small and medium businesses impacted by the current health restrictions.
Micro business grant: if you are a micro business (small business or sole trader with annual turnover of more than $30,000 and under $75,000) impacted by the current Greater Sydney COVID-19 restrictions, you may be able to apply for a $1,500 payment per fortnight of restrictions from late July 2021.
There are in addition several other measures including payroll tax waivers of 25 per cent for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover, as well as payroll tax deferrals and interest free repayment plans have also been announced. Further information is below in the comprehensive list of assistance
Support for Individuals
Federal Government has announced an increase to the emergency disaster payment from $325 to $375 for people who have lost up to 20 hours of work, and from $500 to $600 for people who have lost more than 20 hours of work due to the COVID-19 outbreak in Sydney.
The new payments have been offered in lieu of reinstating JobKeeper. To access the payment, you need to live or work in an area that has been declared a Commonwealth COVID-19 hotspot. To receive the payment, you must be an Australian resident, a permanent resident or be an eligible working visa holder. For the first two weeks of a lockdown, to receive any payment you needed to have liquid assets of $10,000 or less. That means if you have more than $10k in the bank worth of savings – or trust fund money, or shares, you would not be eligible. Please note that your car is not a liquid asset. The $10,000 asset test does not apply from the third week going forward. You also will not receive the payment if you are getting income support payments, another form of pandemic leave payment or a state small business payment.
The factsheet with the pre-existing information is available here Factsheet-COVID-19-01072021 Disaster-Payment
To apply for the payment, you need to have an online myGov account to which you can link a Centrelink online account (if you have not already).
Once online, Centrelink will ask the user a series of questions to determine if they are eligible to claim the payment.
If you are, a claim will be submitted, and the user will be sent a text message confirming the claim has been submitted successfully.
Alternatively, you can ring 180 22 66 to find out if you are eligible.
Commonwealth business tax relief
The Commonwealth will also provide additional support through the tax system, by:
Making NSW small business grants, including the new small business payments, tax exempt.
Providing administrative relief to NSW taxpayers facing hardship, including reduced payment plans, no interest charged on late payments and varying instalments on request.
Current NSW Government COVID-19 Support that is available
In addition to the Small and medium business support payments announced and noted above, the following is a more comprehensive list of the Key components of the NSW Government support that is or will be available
An extension to the previously announced business grants program. This means eligible businesses with Australian wages below $10 million can claim grants between $7,500 and $15,000 to cover the first three-weeks of restrictions, and takes the potential size of the program to $2.1 billion;
Up to $2 billion committed to the scheme to provide cashflow support to businesses to help them retain staff, to be delivered together with the Commonwealth.
Payroll tax waivers of 25 per cent for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover, as well as payroll tax deferrals and interest free repayment plans;
A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30 per cent. The businesses will be eligible for a $1,500 payment per fortnight of restrictions.
A capped grant of up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants estimated at $210 million;
Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability;
Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25 per cent due to COVID-19 and meets a range of criteria.
No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation;
Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2021;
A $75 million support package for the performing arts sector to be administered by Create NSW;
A support package for the accommodation sector worth $26 million;
$12 million in additional funding for temporary accommodation for those at risk of or experiencing homelessness, and
$5.1 million in NSW funding to support mental health.
For more information you can visit NSW Government Media Release COVID-19 Fighting Fund Announcement 13 July 2021
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au