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COVID-19: Small and medium business support package Posted on July 9, 2021
Support for businesses impacted by COVID has changed shape in the last week or so. Here is what you need to know about the latest small and medium business support package…
Joint State & Commonwealth support
40 per cent of a business’s NSW payroll payments, at a minimum of $1,500 and a maximum of $10,000 per week.
From week four of a lockdown, recurring, for the duration of an enforced lockdown in the immediate area of business.
- Turnover is 30 per cent lower than an equivalent two-week period in 2019.
- Non-employing and employing entities in NSW, including not for profits, with an annual turnover between $75,000 and $50 million.
- Maintenance of full time, part time and long-term casual staffing level as of 13 July 2021 throughout the lockdown period.
- For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week.
How to apply
NSW State Government business grants
In addition to the above Federal support, the NSW Government has expanded its business grant package to alleviate cashflow constraints while trading is restricted. The lump sum payments can be used for business expenses such as rent and utilities for which no other government support is available.
- $15,000 for a decline in turnover of 70%, or more
- $10,500 for a decline in turnover of 50%, or more
- $7,500 for a decline in turnover of 30%, or more.
From end of July
- Small Business COVID-19 Support Grant. Available to businesses and sole traders with a turnover of more than $75,000 per annum but below the NSW Government 2020-21 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. Additional eligibility criteria available soon.
A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30 per cent. The businesses will be eligible for a $1,500 payment per fortnight of restrictions.
- Hospitality and Tourism COVID-19 Support Grant. Available to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020. These businesses must have 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.
- Eligible businesses receiving the Small Business Grant will not be eligible for the Hospitality and Tourism Grant as well, and vice versa.
Additional small business support includes payroll tax deferrals for all employers, an extension of the Dine & Discover program to 31 August and the ability for people to use Dine & Discover vouchers for takeaway delivered directly to their home by the venue itself.
How to apply
Applications for grants must be made through Service NSW, with the application process is open through August.
To apply, businesses will need to compare their turnover over a minimum two-week period after lockdown commenced, to a minimum two-week period in June and/or July 2019.
Businesses that were not operating in June/July 2019 may still be able to apply for the grants. We are supporting many small businesses at this difficult time to both access grant funding, and develop cash flow plans for healthy business maintenance.
Accounting team at AdviceCo: 02 4320 0500 / [email protected]