NSW COVID-19 lockdown support for business and individuals

NSW COVID-19 lockdown support for business and individuals (1)

Below we share our summary of the key support available to NSW business owners affected by the current COVID-19 lockdowns. The NSW and Federal Governments have announced a series of new measures to support business during extended lockdowns of four weeks or more.

 

NSW State Government COVID-19 business grant

 

What support is available

The previously announced small business grants have been increased to up to $15,000 and expanded to eligible businesses (including not-for-profits and sole traders) with annual wages of up to $10 million.

The value of the grant is determined by the impact of the lockdown on your turnover. Your business will need to prove a decline in turnover across a minimum 2 week period after the commencement of the major restrictions.

Decline in turnoverGrant
70%+$15,000
50% or more$10,500
30% or more$7,500

Eligibility criteria

The full eligibility criteria, including how the decline of turnover test will be applied, have not been released as yet. However, our understanding is that your business will need to:

  • have a NSW registered ABN or be able to demonstrate it is physically located and primarily operating in NSW
  • have a turnover of more than $75,000 per annum (for businesses under this threshold see $1,500 Micro Business Grants).

 

How to apply

Applications open on 19 July 2021 through ServiceNSW.

 

Cashflow Boost

What support is available

A cashflow payment between a minimum of $1,500 and a maximum of $10,000 per week based on 40% of the NSW payroll payments of your business (including not-for-profits). This is being jointly funded by the NSW State Government and the Federal Government.

The cashflow support will cease when lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.

 

Eligibility criteria

  • Annual turnover between $75,000 and $50 million
  • Demonstrate a 30% decline in turnover (Compared to equivalent 2 week period in 2019 FY)
  • Maintain your full time, part time and long term casual staffing level as of 13 July 2021
  • Impacted by the current Greater Sydney COVID-19 restrictions
  • Support to commence after the 4th week of lockdowns

 

The full eligibility details, including how the decline in turnover test and how the headcount will work have not been released as yet.

 

How to apply

Applications for the cashflow support have not yet opened but you can register your interest from 14 July 2021 through ServiceNSW.

 

Micro Business Grants

 

What support is available

A new grant for micro businesses (including sole traders) providing $1,500 per fortnight while lockdown restrictions apply. The grants are available from week one of the lockdown until restrictions are eased.

 

Eligibility criteria

  • Annual turnover of more than $30,000 and less than $75,000
  • Demonstrate a 30% decline in turnover
  • Impacted by the current Greater Sydney COVID-19 restrictions

 

How to apply

Applications for the cashflow support have not yet opened but you can register your interest from 14 July 2021 through ServiceNSW.

 

Payroll tax relief

Payroll tax and lodgement deadline deferred

NSW payroll tax has been deferred for July and August 2021 until 7 October 2021 for all businesses.

The due date for the 2020-21 annual reconciliation has also been deferred until 7 October 2021.

Please note that previous payroll tax deferrals and payment arrangements for 2020-21 due in July 2021 have not been deferred.

 

25% payroll tax waiver for businesses between $1.2m and $10m

Businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover, will be provided with a 25% payroll tax waiver in 2021-22. Further details of the reduction will be available by the end of August from RevenueNSW.

 

Rent protections and grants

Commercial and retail rent protections will be reinstituted.

 

Eviction moratorium

Legislative amendments will be introduced shortly providing a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19 and meets certain other criteria.

Commercial and retail landlords will need to attempt mediation before recovering a security bond, or locking out or evicting a tenant impacted by Public Health Orders.

 

Land tax relief

Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants will be available for up to 100% of the 2021 land tax liability.

 

Where to next

The support for business owners is evolving as fast as the COVID situation itself.

If you are affected by the NSW lockdowns, it will be essential to Register for ServiceNSW access ASAP. If you already have a Service NSW account, ensure that your details are up to date.

It's also a good idea to check that your ABN details are correct (eligibility will be based on your ABN business address, so be sure that it's up to date if you have moved your operations).

Reach out to Link Advisors if you need any assistance with accessing this support for your NSW business.