What lockdown support is available to business?
As most people have already heard, the COVID-19 stay-at-home order for NSW has been extended into the third week, and the government is reluctant to specify as to when this restriction will be lifted.
Because of this extension, additional assistance packages have been announced by both State and Federal Governments, and below are the latest updates:
NSW 2021 Business Grant
Grants to eligible businesses (including sole traders) have been increased to $15,000 as follows:
Full details of what “eligible” means have yet to be released, but we understand them to be limited to businesses that are located in NSW, have turnovers of more than $75,000 p.a., and payroll of less than $10M p.a.
Full details of how the decline in turnover test is to be applied have also not been released.
Applications for this grant will commence on 19 July 2021 through Service NSW.
The Federal Government has indicated that these payments will not be taxable.
NSW Small and Medium Business Support Payments
Eligible businesses with turnovers between $75,000 and $50M p.a. that have had their turnover reduced by at least 30% from the same 2 week period in 2019 will receive support of 40% of their NSW payroll payment (minimum of $1,500 p.w. and a maximum of $10,000 p.w.) from week 4 of the lockdown.
These businesses will need to retain the staffing level as at 13 July 2021 to be eligible for the payment. For non-employing businesses (e.g. sole traders), the support payment will be $1,000 p.w.
This grant will be managed through Service NSW, and you can register your interest with Service NSW from 14 July 2021. The Federal Government has indicated that these payments will not be taxable.
Micro Business Grant
Businesses with turnover between $30,000 and $75,000 p.a. that have experienced decline in turnover of 30% or more will receive payments of $1,500 per fortnight from late July 2021.
This grant will be managed through Service NSW, and you can register your interest with Service NSW from 14 July 2021. The Federal Government has indicated that these payments may not be taxable.
NSW Payroll Tax Concession
Assistance include:
25% tax waiver for businesses with wages between $1.2M and $10M that have experienced decline in turnover of at least 30%.
Payment deferrals.
Interest-free payments.
This assistance package is being administered by Revenue NSW.
NSW Land Tax Concessions
Land tax relief of the rent reductions by commercial, retail and residential landlord (up to 100% of the land tax liability for 2021) can be granted.
For residential landlords that have reduced rent for tenants but who are not liable for land tax, grants of up to $1,500 are available.
This grant is being administered by Revenue NSW.
Short Term Eviction Moratorium
The NSW Government will shortly introduce legislation to provide eviction moratorium on businesses that have had their turnovers reduced by 25% or more. In addition, it will prevent recovery of the rent arrears from security bonds.
For more information, please visit https://www.fairtrading.nsw.gov.au/.
Accommodation Sector
An assistance package totalling $26M will be provided to operators in this sector. However, more information has not been released as yet.
COVID-19 Disaster Payments
The previous announcement has been updated so that from week 4 of the lockdown, the payments will increase:
From $500 p.w. to $600 p.w. for people who lost more than 20 hours of work p.w.
From $325 to $375 p.w. for people who lost between 8 and 20 hours p.w.
This will be administered by: https://www.servicesaustralia.gov.au/individuals/services/centrelink/covid-19-disaster-payment, and is taxable.
We will continue to keep you updated as more information is made available.
