Dear Friends,
 
As the COVID situation continues to develop and spread within NSW, the state government has introduced numerous grants and initiatives to support businesses during the current lockdown. As such, we wanted to provide you with an update to help guide you through these challenging times.

MEASURES FOR BUSINESSES

2021 COVID-19 Business Grant
Businesses that have an ABN (including self-employed sole traders) and were operating in NSW as at 1 June 2021, have total annual Australian wages of $10 million or less as at 1 July 2020, had an aggregated turnover between $75,000 and $50 million for the year ended 30 June 2020 and have maintained their employee headcount as at 13 July 2021 for the period that they are receiving payments for this grant, will be eligible for a one-off tiered grant.  The grant payment is expected to be tax-free and is tiered as follows:

  • Tier 1 Payment ($7,500) – Experienced a 30% decline in turnover in a fortnightly period from 26 June 2021 and 17 July 2021 compared to the same period in 2019
  •  Tier 2 Payment ($10,500) - Experienced a 50% decline in turnover in a fortnightly period from 26 June 2021 and 17 July 2021 compared to the same period in 2019 
  • Tier 3 Payment ($15,000) - Experienced a 70% decline in turnover in a fortnightly period from 26 June 2021 and 17 July 2021 compared to the same period in 2019

Businesses that primarily earn passive income (rents, interest, or dividends) are not eligible for the 2021 COVID-19 Business Grant.
Key documents for the application:

  • Australian Income Tax Return or Notice of Assessment or other documentation to confirm that the business had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020; and
  • Supporting document for decline in turnover over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in 2019 and total Australian Wages of less than $10 million.  This can be in a form of an accountant letter.

Applications are now open for this grant via Service NSW, and will close 11:59pm 13 September 2021. The grant is intended to cover business costs until 18 July 2021 when the JobSaver scheme commenced.

JobSaver Scheme
NSW businesses with an annual turnover between $75,000 and $50 million, maintain their employee headcount as at 13 July 2021 and can demonstrate a 30% reduction in turnover in a fortnightly period compared to the same or equivalent period in 2019 will be eligible to receive 40% of their NSW payroll payments. This amount will be paid weekly with a minimum payment of $1,500 and maximum payment of $10,000 and is expected to be tax-free. Employers will be entitled to the support from week four of the NSW lockdown, and support will cease when current lockdown restrictions are eased. Eligible sole traders will receive a set payment of $1,000 per week. For non-employing businesses (such as sole traders) need to demonstrate that the business is the primary source of income for an associated person of the business.

Applications for the JobSaver Scheme now open and close 11:59pm 18 October 2021.

Micro Business Grants
NSW businesses (including sole traders) that have an ABN and were operating in NSW on 1 June, have annual turnover between $30,000 and $75,000, have maintained their employee headcount as at 13 July 2021 and have experienced a decline in turnover of 30% over a fortnightly period compared to the same or equivalent period in 2019 will receive payments of $1,500 per fortnight of restrictions.  For non-employing businesses (such as sole traders) need to demonstrate that the business is the primary source of income for an associated person of the business.

Applications for the Micro Business Grant now open and close 11:59pm 18 October 2021.

Small business fees and charges rebate
NSW businesses (including sole traders) that have an ABN and have total annual Australian wages of less than $1.2 million can apply to receive a rebate of $1,500. The rebate can be used to offset the costs of eligible NSW and local government fees and charges incurred after 1 March 2021 and is available to 30 June 2022.

NSW Payroll Tax Concessions
Businesses with grouped Australian wages between $1.2million and $10million for the 2021/22 year and experienced a decline in turnover of 30% or more will receive a 25% payroll tax waiver.

In addition, payment deferrals on the 2020-21 annual reconciliation return and returns due on 7 August and 7 September until the 7 October 2021 and interest-free repayments up to 12 months will be available for businesses under the new Support Payment Arrangement. More information relating to this scheme will be released by end of August 2021.

NSW Land Tax Concessions
Land tax relief for commercial, retail and residential landlords is available to the value of any rent-reductions provided to financially-distressed tenants. Rent reductions provided to a tenant between the period of 1 July 2021 and 31 December 2021 can receive an equal land tax reduction, capped at the 2021 land tax liability attributable to the parcel of land.

A grant of $1,500 is available to residential landlords who do not pay land tax, but have reduced rent for individuals.
 

For more information regarding the above grants and concessions, please see Service NSW Website https://www.service.nsw.gov.au/campaign/covid-19-help-businesses/grants-loans-and-financial-assistance

 
MEASURES FOR INDIVIDUALS

COVID-19 Disaster Payment
Individuals who have lost work due to COVID-19 lockdowns or periods of restricted movement that last longer than 7 days will be eligible to receive a weekly payment provided certain criteria are met. This payment is expected to assessable and is structured in two tiers:

  • Tier 1 $500 (increased to $600 from week 4 of lockdown) – Individuals who have lost 20 hours or more of work a week
  •  Tier 2 $325 (increased to $375 from week 4 of lockdown) – Individuals who have lost between 8 and 20 hours of work

Prior to 18 July 2021, only individuals residing and working in Commonwealth declared hotspots were eligible for this payment. From 18 July 2021, all NSW residents will eligible to receive the payment.  A liquid asset test  is required for certain periods of the Part of Sydney and Greater Sydney areas,  as detailed in the below table.

In addition, to be eligible for the payment you are required to be at least 17 years old; be an Australian resident or hold a visa class permitted to work in Australia; have lost more than 8 hours of work or a full day of your usual work as a result of the restrictions; not be receiving an income support and do not have access to appropriate leave entitlements.

Appropriate leave entitlements includes state pandemic payments and the pandemic leave disaster payment, but excludes annual leave, unpaid leave, long service leave or any leave that cannot be access when stood down without pay.
 
Applications are now open for this payment through the Services Australia website. Below are key eligible dates for claims:

Event

Liquid assets limit

Event Dates

Claims Open

Claims Close

Part of Sydney
(local government areas of Bayside, Canada Bay, City of Sydney, Inner West, Randwick, Waverley and Woollahra)

$10,000 limit

1-7 July 2021

1 July 2021

28 July 2021

 

No limit

8-14 July 2021

8 July 2021

4 August 2021

15-21 July 2021

15 July 2021

11 August 2021

22-28 July 2021

22 July 2021

18 August 2021

29-30 July 2021

29 July 2021

25 August 2021

Greater Sydney(including the Blue Mountains, Central Coast, Shellharbour and Wollongong)

$10,000 limit

4-10 July 2021

4 July 2021

31 July 2021


No limit

11-17 July 2021

11 July 2021

7 August 2021

18-24 July 2021

18 July 2021

14 August 2021

25-30 July 2021

25 July 2021

21 August 2021

All other areas of NSW

No limit

18-30 July 2021

18 July 2021

21 August 2021

For more information regarding the disaster payment, please see the Service Australia Website:  https://www.servicesaustralia.gov.au/individuals/services/centrelink/covid-19-disaster-payment    

Pandemic Leave Disaster Payment
Financial support provided for individuals who are unable to work as they have been directed to self-isolate or quarantine for 14 days or caring for someone who has COVID 19. Eligible individuals will receive $1,500 for each 14 day period.

Remember, we are here to help and please don't hesitate to contact me or any of our team members if you have any questions or concerns.

 
We will continue to keep you updated if there are any changes. Take care of your family and be safe.