COVID-19 Business Grant

In response to the COVID-19 lockdown in Sydney and restrictions in regional NSW, the government has introduced the ‘2021 COVID-19 Business Grant’. If you’re a business, sole trader or not-for-profit organisation in NSW and you’ve been impacted by the recent COVID-19 restrictions, you may be eligible to receive once-off payments of:

• $7,500 – if your business has experienced a decline in turnover of 30% or more due to the public health orders
• $10,500 – if your business has experienced a decline in turnover of 50% or more due to the public health orders
• $15,000 – if your business has experienced a decline in turnover of 70% or more due to the public health orders

The decline in turnover test covers a minimum two week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019.

Applications for the grant are now open and will close at 11:59pm on 13 September 2021.

If you would like Pitcher Partners Newcastle and Hunter to assess your eligibility please contact us with the following information:

• A copy of the completed and signed authority form.
• Your turnover for any two week period between 26 June 2021 to 17 July 2021.
• Your turnover for the applicable comparative period in June / July 2019.

Note: If your business does not have a comparable turnover period in the 2019 year, please contact Service NSW on 13 77 88 to find out what you need to provide as supporting evidence to submit with your application.

The Grant will provide cash flow support until the JobSaver program commences by helping eligible businesses and not-for-profit organisations with business costs.

JobSaver

The JobSaver program (JobSaver) will provide small and medium businesses with support payments to help maintain employee headcount (as at 13 July 2021) and provide cash flow support to businesses.

Although equally funded by the Commonwealth and the NSW Government, the JobSaver program will be implemented and administered by the NSW Government.

JobSaver payments are available to businesses with an annual turnover of between $75,000 and $250 million, which have experienced a revenue decline of 30 per cent or more. The maximum weekly payment has also been increased, with employing businesses that maintain their employee headcount now able receive between $1500 and $100,000 per week, with payments based on 40 per cent of their weekly NSW payroll.

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.

Eligible businesses can use JobSaver to cover business costs incurred from 18 July 2021. These costs may include:

• salaries and wages
• utilities and rent
• financial, legal or other advice
• marketing and communications
• perishable goods
• other business costs.

A qualified accountant, registered tax agent or registered BAS agent may apply for the JobSaver payment on behalf of your business.

Your accountant will need to provide a Letter of Authority from you to show that they are authorised to act on behalf of your business if they are not listed as an associate on the Australian Business Register. If you require a letter from us please contact your accoutant.

Applications will close at 11:59pm on 18 October 2021. Go to Service NSW to check eligibility and to apply.

 

Micro Business Support Grants

As the COVID-19 Business Support Grant is available only for businesses with an annual turnover of more than $75,000, a new grants program will be available for micro businesses with a turnover of between $30,000 and $75,000 that experience a decline in turnover of 30%. These businesses will be eligible for a $1,500 payment per fortnight of restrictions.

Eligible applicants can use the grant for business costs incurred from 1 June 2021 and for which no other government support is available, including:

• salaries and wages
• utilities and rent
• financial, legal or other advice
• marketing and communications
• perishable goods
• other business costs.

Applications will close after 11:59pm on 18 October 2021. Go to Service NSW to check eligibility and to apply.

Hospitality and Tourism COVID-19 Support Grant

A separate business grant — the Hospitality and Tourism COVID-19 Support Grant — will be available to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual Australian wages bill of less than $10 million, as at 1 July 2020.
These businesses must have an ABN registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW.

Gaming tax assessments

The NSW Government will defer gaming tax assessments for:

• clubs until 21 December 2021; and
• hotels until 21 January 2022.

Payroll tax relief

Payroll tax relief will be available in the form of:

• payroll tax waivers of 25% (i.e. a 25% reduction in 2021–22 payroll tax) for businesses with Australian wages of more than $1.2 million and no more than $10 million that have experienced a 30% decline in turnover;
• a deferral of the 2020–21 payroll tax reconciliation (due by 28 July 2021) and payroll tax payments due on 7 August and 7 September until 7 October 2022; and
• interest-free repayment plans of up to 12 months on a case-by-case basis.

Small business fees and charges rebate

Sole traders, small business owners or a not-for-profit organisation in NSW may be eligible for a Small business fees and charges rebate (the Rebate) of $1,500. Small businesses (including non-employing sole traders) and not-for-profit organisations are eligible for the $1,500 Rebate if:

• their total Australian wages is less than the NSW Government 2020–21 payroll tax threshold of $1.2 million; and
• they have their own ABN registered and/or are physically located and operating in NSW.

The Rebate can be used to offset the costs of eligible NSW and local government fees and charges due and paid from 1 March 2021. View more at Service NSW.

If you have any questions in relation to COVID-19 support grants and eligibility please contact your business adviser at Pitcher Partners Newcastle and Hunter.