A number of business support packages have been announced with the recent NSW/Sydney lockdown. We have put together a summary and detail around what is available.

The NSW JobSaver guidelines were updated overnight on 25th August 2021 with some important changes.

Of particular note are:

• Extended to larger business in hospitality, tourism and recreation industries with turnover above $250m to $1b
• Removal of reference of Sydney lockdowns to now include reference to NSW regions under lockdown
• Headcount to be from when businesses first experienced required decline in turnover not just 13 July
• Clarification on Cash v Accruals to be BAS method
• Service entity arrangement guidance

Please take these updates into account when reading the information below.

NSW COVID-19 Support Payments Summary

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COVID-19 Business Grant

The Grant will be available to businesses across New South Wales that meet the eligibility criteria outlined in this document.

Applications will open on 19 July 2021 and close at 11:59pm on 13 September 2021.

Businesses that received previous COVID-19 small business grants, including the 2020 Small Business COVID-19 Support and Small Business Recovery Grants, can apply for this grant.

Service NSW will deliver the grant on behalf of the NSW Government consistent with policy settings administered by NSW Treasury.

By applying for the grant, businesses agree that their application may be subject to an audit by the NSW Government or its representatives and agree to participate in the process if required.

Note: Non-employing businesses are not eligible to apply if persons associated with the business, and who derive income from it, have applied for, or are receiving, the Commonwealth COVID-19 Disaster Payment.

An overview of the NSW Business Support Package can be found here  Note: this document is not updated with changes announced from 25th August 2021. 

Available funding

Eligible businesses (including non-employing businesses) and not-for-profit organisations can apply for a one-off grant of $7,500 (tier 1) or $10,500 (tier 2) or $15,000 (tier 3) via one application:

• $7,500 (tier 1): Businesses that have experienced a decline in turnover of 30% or more due to the Public Health Orders will be eligible for a grant of $7,500.
• $10,500 (tier 2): Businesses that have experienced a decline in turnover of 50% or more due to the Public Health Orders will be eligible for a grant of $10,500.
• $15,000 (tier 3): Businesses that have experienced a decline in turnover of 70% or more due to the Public Health Orders will be eligible for a grant of $15,000.

Eligible businesses may only receive one grant tier.

Only one grant is available for a single ABN. 

Eligibility criteria

Businesses and not-for-profit organisations that have been impacted by the Public Health Orders will be eligible for the $7,500 (tier 1) grant if they:

• have an Australian Business Number (ABN) and were operating in New South Wales as at 1 June 2021;
• have total annual Australian wages of $10 million or less as at 1 July 2020;
• had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020;
• have business costs for which there is no other government support available;
• have experienced a decline in turnover of 30% or more due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019 (Please note an alternative comparison period applies for NSW southern border business -see below);
• maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme.

To calculate ‘total annual Australian wages’, businesses already grouped by Revenue NSW should apply these rules. Businesses not already grouped should apply the ownership grouping provisions set out in the New South Wales Payroll Tax Act.

Businesses and not-for-profit organisations will be eligible for the $10,500 (tier 2) grant if they:

• meet the eligibility criteria for the $7,500 (tier 1) except they must:
  • have experienced a decline in turnover of 50% or more due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019.

Businesses and not-for-profit organisations will be eligible for the $15,000 (tier 3) grant if they:

• meet the eligibility criteria for the $7,500 (tier 1) except they must:
  • have experienced a decline in turnover of 70% or more due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019.

A different comparison period applies for businesses on the Victorian border impacted by the New South Wales stay at home orders that commenced on 27 May 2021. Southern Border businesses will have to demonstrate the required decline in turnover for a minimum period of two weeks between 27 May 2021 to 17 July 2021.

How funding may be used

The Grant will help eligible businesses and not-for-profit organisations with business costs incurred from 1 June 2021 to 17 July 2021 (when JobSaver commences). These costs may include, but are not limited to, the following expenses:

• utilities, wages and rent;
• financial, legal or other advice to support business continuity planning;
• marketing and communications activities to develop the business;
• the cost of perishable goods that can no longer be used; or
• other activities to support the operation of the business.

The grant must only be used for expenses for which no other government support is available. 

Evidence in support of eligibility

Businesses on the ‘highly impacted industries list’ – $7,500 (tier 1) and $10,500 (tier 2) grants

Eligible businesses on the ‘highly impacted industries list’ (see link) applying for the $7,500 (tier 1) and the $10,500 (tier 2) grant are required to:

• declare they experienced the required decline in turnover due to the Public Health Orders over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019;
  • for Southern Border businesses the turnover period is from 27 May 2021 to 17 July 2021 compared to the same period in May and/or June and/or July 2019.
• declare they have eligible expenses for which no other government support is available. They will not be required to provide evidence of costs on application but will need to keep evidence of costs for a possible future audit;
• declare their employee headcount at 13 July 2021;
• declare they will maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme;
• provide details of their qualified accountant, registered tax agent or registered BAS agent for possible compliance checking;
• submit an Australian Income Tax Return (or Notice of Assessment) or other documentation to demonstrate their business had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020; and
• lodge other supporting documents as required to demonstrate that they meet the eligibility criteria.

Businesses on the ‘highly impacted industries list’ applying for the $15,000 grant (tier 3).

In addition to the tier 1 and 2 evidence requirements, to receive the full $15,000 eligible business must also submit evidence that they:

• experienced a decline in turnover of 70% or more over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019.
  • for Southern Border businesses the turnover period is from 27 May 2021 to 17 July 2021 compared to the same period in May and/or June and/or July 2019.

Businesses outside the ‘highly impacted industries list’ – all tiers

Eligible businesses outside the ‘highly impacted industries list’ applying for the $7,500 (tier 1), the $10,500 (tier 2) or the $15,000 (tier 3) grant are required to:

• submit evidence that they experienced the required decline in turnover over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019;
  • for Southern Border businesses the turnover period is from 27 May 2021 to 17 July 2021 compared to the same period in May and/or June and/or July 2019.
• declare they have eligible expenses for which no other government support is available. They will not be required to provide evidence of costs on application (e.g. invoices) but will need to keep evidence of costs for a possible future audit;
• declare their employee headcount at 13 July 2021;
• declare they will maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme;
• submit an Australian Income Tax Return (or Notice of Assessment) or other documentation to demonstrate their business had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020; and
• lodge other supporting documents as required to demonstrate that they meet the eligibility criteria.

Supporting evidence

Where evidence is required to show total annual Australian wages, and decline in turnover, this will be in the form of a letter from one of the following Independent Practitioners:

• qualified accountant as defined in the Corporations Act 2001
• registered tax agent as defined under the Tax Agent Services Act 2009; or
• registered BAS agent as defined under the Tax Services Act 2009.

A template is available on the Service NSW website detailing what the accountant or tax professional’s letter must include.

Alternative circumstances

Businesses operating in New South Wales with their ABN registered elsewhere should contact Service NSW. They will be able to apply if they can provide evidence their business was operating in New South Wales as at 1 June 2021. Evidence to demonstrate this includes commercial rates notices or lease agreements. Where a rates notice or lease agreement is not available, Service NSW may accept a combination of the following:

• utility bills
• insurance papers
• supply invoices
• registration papers
• contractor licences.

Businesses that cannot demonstrate the minimum $75,000 aggregated annual turnover or the minimum decline in turnover should contact Service NSW as they may still be eligible to apply if they:

• were not operating for the full year to 30 June 2020 but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021, and they can demonstrate they have been significantly impacted by the Public Health Orders, or
• their turnover in June/July 2019 was not representative of their usual or average turnover which is usually $75,000 per annum or more, and they can demonstrate they have been significantly impacted by the Public Health Orders.

Where a business does not submit a BAS to the Australian Tax Office, the business should contact Service NSW to discuss further.

Where a business operates through a trust structure, the applicant will be required to provide additional information to demonstrate an aggregated annual turnover of $75,000 or more is derived through the trust, as opposed to a business linked to a trust.

Service NSW can request a combination of the following documents to support its determination of eligibility:

• accountant’s letter
• prior BAS statements
• income tax declarations
• audited profit and loss statements
• receipts and invoices from purchases

Where a business is unable to provide these documents, or where Service NSW is satisfied it has other suitable methods to determine eligibility, Service NSW may accept another form of documentation.

Southern Border business is a business that has an ABN registered in, or is physically located and primarily operating in, one of the following local government areas:

• Albury
• Balranald
• Berrigan
• Bega Valley
• Edward River
• Federation
• Greater Hume Shire 
• Hay
• Murray River
• Murrumbidgee
• Snowy Monaro
• Snowy Valleys
• Wentworth.

As the above information is constantly being updated, please check for updates here.

JobSaver

Fortnightly payments to help maintain employee headcount (as at 13 July) and provide cashflow support to businesses

How much

• Employing businesses will receive 40% of weekly payroll, with a minimum payment of $1,500 per week and a maximum payment of $10,000 per week
• Non-employing business: $1,000 per week

Eligibility

• A revenue decline of 30% or more
• Turnover between $75,000 and $50 million

Applications open late July.

Additional information is due to be released shortly.

Please refer to updates referenced at the beginning of this page. 

COVID-19 Micro Business Grants

A fortnightly payment for businesses with a turnover between $30,000 and $75,000

How much

• $1,500 per fortnight

Eligibility

• A turnover between $30k and $75k
• A revenue decline of 30% or more
• Businesses that provide the primary income source for a person associated with the business.

Applications open late July.

Additional information is due to be released shortly.

As the above information is constantly being updated, please check for updates here.

COVID-19 Disaster Payment – Individuals

The COVID-19 disaster payment is a lump sum payment to support workers unable to earn income due to a COVID-19 restrictions that last for more than seven days. A new claim must be submitted for each additional week of lockdown.

These payments will be administered by Centrelink.

Eligibility

A worker may be eligible for a COVID-19 disaster payment if they:

• Are an Australian resident or hold an eligible working visa;
• Are 17 years or older;
• Are not currently receiving income support payments (ABSTUDY Living Allowance, Dad and Partner Pay or Parental Leave Pay;
• Are not receiving a state or territory pandemic payment or state small business payment for the same period;
• Live in, work from or have visited a Commonwealth declared COVID-19 hotspot;
• Cannot attend work due to COVID-19 hotspot or are subject to a restricted movement order;
• Lost income on or after day 8 of a lockdown;
• Do not have access to paid leave entitlements through their employer; and
• the liquid assets rule for your event.

Payments

Further information can be found here.

Small Business Fees & Charges Rebate

Overview

This rebate helps small businesses and sole traders reduce the cost of running a business by offsetting the costs of eligible NSW and local government fees and charges. Eligible business or not-for-profits only need to apply for the rebate once but can submit multiple claims until a maximum value of $1,500 has been claimed. Online applications are currently open, and the rebate will be available until 30 June 2022. 

Eligible NSW and Local Government Fees

Eligible NSW and local government fees and charges are listed here.

Who Can Apply

To be eligible for the rebate, a business must:

• Have total Australian annual wages below the NSW Government 2020-2021 payroll tax threshold of $1.2 million as at 1 July 2020.
• Have an ABN registered in NSW and/or have business premises physically located and operating in NSW.

What You Need to Apply

• A MyServiceNSW Account
• Proof of identity (two documents are required)
• Your valid ABN
• Your business banking details for payment.

For each claim you will need invoices and receipts showing payment of eligible fees or charges. You can only upload one receipt per claim.

Note: You will need to supply supporting documentation when applying for the rebate and each time you make a claim. 

How to Apply

1. Have your documentation ready for uploading.
2. Check the eligibility criteria.
3. Select the ‘Apply online’ button.
4. Log in or create your MyServiceNSW Account.
5. Select and verify your identity documents.
6. Confirm your contact details.
7. Enter the required information and upload supporting documents.
8. Enter your bank details
9. Review your application
10. Check the declaration boxes
11. Submit your application.

Note: Once you have submitted your application, you’ll receive a confirmation email. After your application has been received Service NSW will review and contact you for further information if required. You’ll be notified once your application is approved and emailed details of how to make claims.

Other Changes to Financial Supports

Extension to Dine & Discover NSW

The NSW Government has extended the Dine & Discover voucher program to allow their use until 31 August 2021. Dine vouchers can also now be redeemed for takeaway delivered from businesses registered for the Dine component of the program.

Deferral of Payroll Tax Liabilities

The NSW Government has made the following concessions for payroll tax:

• Payroll tax will be deferred to 30 August 2021 for all businesses registered for payroll tax.
• Businesses with payrolls over $10 million will receive a 6-month deferral. 
• Businesses with payrolls under $10 million that received a 3-month waiver on payroll tax in an earlier package will receive an additional 3-month deferral.