NSW Covid Stimulus: What is available and when?
In response to the extension of the COVID lockdown within the Greater Sydney region, the NSW Government have announced a comprehensive economic support package which expands upon their original business grants program announced on 29 June 2021.
The commitment now covers $5.1 billion which includes more than $1 billion from the Commonwealth as part of a business and employee support program.
The three main aims within the new grant stimulus package are to help protect businesses, saving and maintaining jobs throughout the lockdown and ensuring people have support during an uncertain and difficult time.
- Small Business Grant
- Micro Business Grant
- Hospitality and Tourism Covid-19 Support Grant
- Landlord Relief
- Payroll Tax Deferral
- Commonwealth Business Tax Relief
- COVID Disaster Relief
Please see below for additional information regarding support packages available.
Small Business Grant
The NSW Government has extended and expanded the previously announced grants program with grants between $7,500 and $15,000 available to eligible businesses with annual Australian wages up to $10 million.
The grants for eligible businesses will receive:
- $15,000 for a decline in turnover of 70%, or more
- $10,500 for a decline in turnover of 50%, or more
- $7,500 for a decline in turnover of 30%, or more.
- Consult with an advisor at Cutcher & Neale in regard to the eligibility requirements.
- Apply via Service NSW from 19 July
- To apply, you will need to provide:
- a MyServiceNSW Account
- proof of identity
- a valid ABN/ACN number
- your business banking details for payment
- Australian income tax return or Notice of Assessment
- Details of your qualified accountant, registered tax agent or registered BAS agent
- Additionally, you will need to submit a letter from your qualified accountant, registered tax agent or registered BAS agent as evidence of your decline in turnover if one of the following applies
- Your business is not on the highly impacted industries list. This applies for all three grant tiers.
- Your business is on the highly impacted industries list and you are eligible for a $15,000 grant (i.e. decline in turnover of 70% or more). Note - you will not receive the full amount unless you provide the letter
To read the eligibility criteria, please visit www.service.nsw.gov.au/transaction/2021-covid-19-business-grant
Micro Business Support Grant
The NSW Government has also announced a Micro Business Grant of $1,500 per fortnight for eligible businesses with turnover between $30,000 and $75,000.
To read the eligibility criteria, please visit the Service NSW website.
Hospitality and Tourism Covid 19 Support Grant
This has been confirmed by NSW Government.
It is available to businesses that have turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020.
Amounts are the same as the small business grant - $10,000, $7,000 and $5,000.
Hospitality and tourism businesses will be eligible for a Hospitality and Tourism COVID-19 Support Grant if they:
- have an ANZSIC code that is classified as a tourism or hospitality business;
- have an ABN registered in NSW or can demonstrate they are physically located and primarily operating in NSW. Only one grant is available for a single ABN.
- have total annual Australian wages below $10 million as at 1 July 2020.
- have an annual turnover of more than $75,000 as at 1 June 2021.
- have not applied for, or received, a 2021 Small Business COVID-19 Support Grant (see above), and
- have business costs for which there is no other government support available.
JobSaver will provide cash flow support to impacted businesses to help maintain their NSW employee headcount on 13 July 2021 or the day immediately prior to the fortnight they first experience the required decline in turnover to receive JobSaver payments. This is aimed to deliver support to businesses and individuals by providing financial assistance needed during the necessary extension of the lockdown.
Eligible businesses and not-for-profit organisations with employees will receive fortnightly payments backdated to the start of the fortnight they first experienced the required decline in turnover on or after the commencement of JobSaver on 18 July 2021.
The payment will be equivalent to 40% of the weekly payroll for work performed in NSW:
- minimum payment will be $1,500 per week
- maximum payment will be $100,000 per week.
Weekly payroll should generally be determined by referring to the most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) before 26 June 2021 for the 2020-21 financial year.
If you’re a non-employing business, such as a sole trader, you may be eligible to receive a payment of $1,000 per week. However, where the annual turnover of a non-employing businesses is aggregated with employing business(es) for the purpose of calculating aggregated annual turnover, the non-employing businesses are ineligible to apply for JobSaver payments.
The JobSaver payment will help eligible businesses to cover their business costs incurred due to the impacts of the Public Health Order in New South Wales. These costs may include, but are not limited to, the following expenses:
- salaries and wages
- utilities and rent
- financial, legal or other advice
- marketing and communications
- perishable goods
- other business costs.
Applications will close on 18 October 2021.
To read the eligibility criteria, please visit www.service.nsw.gov.au/transaction/jobsaver-payment
Land Tax relief of up to 100% of the land tax liability will be available to residential and commercial landlords that pay land tax and reduce rents for their tenants.
For residential landlords that reduce their tenant’s rent and not liable to land tax, a grant of up to $1,500 may be available on application if qualifying criteria are met.
The NSW Government have also introduced a Residential Tenancy Support Payment for properties tenanted in NSW. A property is only able to receive either the 2021 land tax COVID-19 relief or the Residential Tenancy Support Payment. Landowners should consider and liaise with a Cutcher & Neale advisor as to which relief option is most appropriate before applying.
It is important to note that landowners who have already applied for any of the previous relief periods, can also apply for the 2021 land tax COVID-19 (1 July 2021 – 31 December 2021) period provided all eligibility requirements are met.
Applications for land tax relief are now available via Service NSW and will be open until 31 January 2021.
Further guidelines and eligibility requirements can be found at: www.revenue.nsw.gov.au/news-media-releases/covid-19-tax-relief-measures/2021-land-tax-covid-19-relief-guidelines-jul-dec
Payroll Tax Deferral and Relief
All businesses paying payroll tax in NSW will be able to defer their payroll tax payments until 7 October 2021.
Businesses with annual payrolls between $1.2m and $10m may be eligible for a payroll tax relief of 25% of the business’ annual liability.
Prepare your 2021 payroll tax annual reconciliation and July and August monthly payroll tax calculations as soon as possible so you can start planning your cashflow.
Commonwealth Business Tax Relief
Additional Commonwealth tax relief was also announced:
- NSW small business grants will be tax exempt
- Administrative relief will be provided to NSW taxpayers facing hardship. This includes reduced payment plans, no interest charged on late payments and varying instalments on request.
- Speak with an advisor at Cutcher & Neale if you are experiencing difficulties in paying debts or upcoming tax liabilities. We can assist with the setting up of payment plans if needed.
COVID Disaster Payment
The Federal Government has expanded the existing COVID-19 Disaster Payment support available to individuals living in a declared COVID-19 hotspot
From week 4 of the lockdown, weekly payments can be claimed by individuals who have lost more than 8 hours or a full day of work in a week. The payments are as follows:
- lost 20 hours or more - $750 (previously $600)
- lost between 8 and 20 hours - $450 (previously $375)
Individuals will need to meet additional eligibility criteria.
- Consult with an advisor at Cutcher & Neale regarding the eligibility requirements
- Apply via Services Australia website