Financial support for NSW businesses impacted by COVID-19

The NSW Government will be offering the following financial support measures to businesses impacted by the recent COVID-19 restrictions and stay at home orders.

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 for a one-off grant of $7,500, $10,500 or $15,000.

The 2021 COVID-19 business grant provides cash flow support for businesses that experienced reduced demand or had to close due to the public health orders. Eligible applicants across NSW can use the grant for business costs incurred from 1 June 2021.

To be eligible for the grant, you must:

  • have an active Australian Business Number;
  • demonstrate your business was operating in NSW as at 1 June 2021;
  • have had total annual Australian wages of $10 million or less as at 1 July 2020;
  • have had an aggregated annual turnover between $75,000 and $50 million for the year ended 30 June 2020;
  • have business costs for which there is no other government support available;
  • for employing businesses, maintain your employee headcount from 13 July 2021 while receiving payments from this grant; and
  • for non-employing businesses, have your primary income source come from this business. If you have more than one non-employing business, you can only claim payments for one business; and
  • have experienced a decline in turnover of 30% or more due to the public health order over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to:

1. the same period in 2019 or
2. the same period in 2020 or
3. the 2 weeks immediately prior to any restrictions of 12 June to 25 June 2021 (inclusive).

Three different grant amounts will be available depending on the decline in turnover:

  • $7,500 for a decline of 30% or more
  • $10,500 for a decline of 50% or more
  • $15,000 for a decline of 70% or more.

If your business does not meet all of the eligibility criteria, you may still be able to apply for the grant. Please contact us immediately to discuss your options.

JobSaver Program

Eligible businesses who maintain their staff headcount will receive tax-free fortnightly payments of 40 percent of their weekly payroll, with a minimum of $1,500 per week and a maximum payment of $100,000 per week. Eligible non-employing business will receive $1,000 per week.

To be eligible for JobSaver your business or not-for-profit organisation should:

  • have an active Australian Business Number;
  • have been operating in NSW on 1 June 2021;
  • have had an aggregated annual turnover between $75,000 and $250 million for the year ended 30 June 2020;
  • for employing businesses, maintain your employee headcount from 13 July 2021 if you received payments from the start of JobSaver, or otherwise from the day before the fortnight that you first experienced the
    required decline in turnover;
  • for non-employing businesses, such as sole traders, show that the business is the primary income source for the associated person. If you have more than one non-employing business, you can only claim payments
    for one business; and
  • have experienced a decline in turnover of 30% or more due to the public health order over a minimum 2-week period commencing 26 June 2021 compared to:

1. the same period in 2019 or
2. the same period in 2020 or
3. the 2 weeks immediately prior to any restrictions of 12 June to 25 June 2021 (inclusive).

Please note that Non-employing businesses are not eligible to apply for this grant if anyone associated with the business and deriving income from it has received the Commonwealth COVID-19 Disaster Payment for the same period.

Micro Business Grant

The micro business support grant will be available for eligible businesses that experience a decline in turnover of 30 percent or more. Eligible businesses will receive $1,500, tax free, per fortnight of restrictions.

To be eligible for the grant, you must:

  • have an active Australian Business Number (ABN) registered in, or demonstrate your business was primarily operating in, NSW as at 1 June 2021;
  • have had an aggregated annual turnover between $30,000 and $75,000 for the year ended 30 June 2020;
  • have business costs for which no other government support is available;
  • have not applied for either the 2021 COVID-19 business grant or the JobSaver payment;
  • have business costs for which there is no other government support available;
  • for employing businesses, maintain your employee headcount from 13 July 2021, if you receive payments from the commencement of the micro-business grant, or from the day immediately prior to the fortnight you
    first experienced the required decline in turnover, for the period you are receiving grant payments; businesses that do not maintain their headcount agree to notify Service NSW; and
  • have this business as your primary income source, if you’re a non-employing business such as a sole trader; and
  • have experienced a decline in turnover of 30% or more due to the public health order over a minimum 2-week period within the period of restrictions (commenced 26 June 2021), compared to:

1. the same period in 2019 or
2. the same period in 2020 or
3. the 2 weeks immediately prior to any restrictions of 12 June to 25 June 2021 (inclusive).

Please note that Non-employing businesses are not eligible to apply for this grant if anyone associated with the business and deriving income from it has received the Commonwealth COVID-19 Disaster Payment for the same period.

Payroll Tax Deferrals

To assist businesses with the impact of COVID-19, the due date for lodgement and payment of the 2021 annual reconciliation has been extended to 7 October 2021. Businesses will also have the option of deferring payments for the July and August 2021 return periods until 7 October 2021 and enter into a new Support Payment Arrangement.

Payroll Tax Concessions

Businesses with total grouped Australian wages for the 2021/22 financial year of $10 million or less and who have had a decline in revenue of 30 per cent or more, will have their annual tax liability reduced by 25 per cent.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.