15 Jul

COVID 19-Support Package for NSW – 2021

The NSW lockdown has been extended for another two weeks minimum, and most probably for much longer than two weeks as most are predicting.  The Federal Government has stepped in to offer support for NSW businesses in this difficult time.  The NSW Government has also increased its support package to assist businesses and individuals affected.

Federal Government COVID-19 Disaster Payment – for individuals

  • The Federal Governments support package will only kick in from week four of a lockdown. 
  • From week four of a lockdown, the COVID-19 Disaster Payment will increase from $500 to $600 each week if a person has lost 20 hours or more of work a week or $325 to $375 each week if a person has lost between 8 and 20 hours of work.
  •  The COVID-19 Disaster Payment will be a recurring payment for approved recipients for as long as the Commonwealth declared hotspot and lockdown restrictions remain in place.  Recipients will not need to re-apply for each seven day period of a lockdown.
  • To be eligible for the payment, a person is required to have lost more than 8 hours or a full day of work.
  • Individuals to apply through Services Australia website.
  • From 18 July 2021, those outside Commonwealth declared hotspots in NSW will meet the criteria for this payment.

Federal Government COVID-19 Disaster Payment – for small and medium businesses

  • 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.

The NSW Government has also updated the COVID-19 business support package to include:

  • 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. (this was previously capped at $10,000).  Eligible businesses can receive: $15,000 for a decline in turnover of 70% or more, $10,000 for a decline in turnover of 50% or more, or $7,500 for a decline in turnover of 30% or more.
  • “JobSaver” employee retention scheme, to help businesses retain their employees.   The cash boost will be up to 40% of weekly payroll with a payment of between $1,500 to a maximum of $10,000 per week.  Employee levels must be maintained at the same levels as on 13 July 2021.
  • Non-employing businesses are eligible for $1,000 per week.
  • New grants program for micro businesses with a turnover of between $30,000 and $75,000.  Businesses need to experience a decline in turnover of 30%. The businesses will be eligible for a $1,500 payment per fortnight of restrictions.
  • Payroll tax waivers of 25% for businesses with Australian wages bills of between $1.2m – $10m that have experienced a 30% decline in turnover
  • Payroll tax deferrals and interest free repayment plans.
  • Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords, up to 100% of the 2021 land tax year liability.
  • Landlords to participate in mediation before taking actions to evict or lock out tenants. 
  • Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2021.
  • All NSW small business grants will be tax exempt.

Full eligibility criteria will be available at Service NSW website soon. 

Businesses can register their interest at Service NSW from 14 July 2021 via this link: https://www.service.nsw.gov.au/covid-19-business-support-2021

To help avoid delays in completing the application for any of the COVID-19 support packages, businesses should ensure that the following are up to date or in place:

  • Business and contact details are up to date with ABR.
  • Personal and business details are up to date in Service NSW and your business profile
  • Create a Service NSW account and business profile if you don’t have one.

If you wish to discuss any of the above matters, please do not hesitate to contact our office.