A new grant package in NSW has been designed to help thousands of small businesses impacted by the recent COVID lockdown restrictions.
The package is made up of three main components:
1. Grant between $5,000 and $10,000
From late July 2021, businesses including sole traders that are impacted by the Sydney COVID lockdown restrictions can apply for government support. The grant can be used for business expenses such as employment costs (wages & superannuation), rent & utilities etc. The grant amount will depend on the decline in turnover experienced during the restrictions. $5,000 for a 30% decline or more. $7,000 for a 50% decline or more. $10,000 for a 70% decline or more. Businesses will be able to apply for the grant through Service NSW from late in July and will need to show a decline in turnover across a minimum two-week period after the start of major restrictions on June 26.
To be eligible businesses and sole traders must have a turnover of more than $75,000 per annum but below the NSW payroll tax threshold of $1,200,000 as at 1 July 2020. These businesses must have fewer than 20 full time equivalent employees and an Australian Business Number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales.
A second stream to this grant is to help include most hospitality and tourism sectors in their eligibility. They do not need to meet the fewer than 20 employees test and their turnover must be between $75,000 and $10 million.
2. Extension of the Dine & Discover Program
The NSW Government had previously launched the Dine & Discover NSW vouchers which could be used for dining at restaurants, cafes, bars, pubs & wineries as well as entertainment and recreation including live music and art venues. These vouchers were to be used by 31 July, however have been given a one month extension to be used by 31 August. You can apply for a Dine & Discover voucher here.
3. Payroll Tax deferrals
An optional deferral will be available for businesses who have payroll tax due in July 2021. NSW State Revenue Office will also allow payment plans on a case by case basis. You must contact NSW State Revenue Office directly for this arrangement.
The package will provide relief to thousands of impacted businesses across the state and will help them during this lockdown period. We suggest keeping up to date with application openings and further relief announcements on the Service NSW website.