Eligibility for the 2021 COVID-19 business grant released
Registrations are expected to be open from today. Online applications will close on 13 September 2021.
» You can apply online at https://www.service.nsw.gov.au/transaction/2021-covid-19-business-grant
We have been through the detailed guidelines and summarise as follows.
- 30% or more reduction in turnover – $7,500
- 50% or more reduction in turnover – $10,500
- 70% or more reduction in turnover – $15,000
- Multiple businesses under one ABN are only eligible for one grant.
- Must have an ABN and have been operating in NSW at 1 June 2021. There are some exemptions if you have an ABN outside NSW but can demonstrate you operated within NSW at 1 June 2021.
- Total Australian wages less than $10M at 1 July 2020.
- Aggregated turnover of more than $75,000 less than $50M for year ended 30 June 2020. A micro business grant for businesses or sole traders with turnover of more than $30,000 but less than $75,000 will be available from late July.
- Business costs that no other grant is available for (such as fees & charges rebate).
- Maintain employee head count as at 13 July (Persons employed in NSW and who are full-time and part-time and long-term (more than 12 month) casuals). This means that the employer-employee relationship must be maintained, consistent with employment law (ie employment cannot be terminated). However employer will remain eligible if an employee voluntarily resigns.
Decline in turnover conditions
- Your business must have experienced a decline in turnover of 30% or more over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019.
- There is no alternate test for businesses that were not operating in 2019 (or if 2019 is not a true comparison) or did not meet the minimum $75,000 turnover. These applicants must contact Services NSW.
- If you are in a highly impacted industry you only need a letter from your accountant for the $15,000 Grant. Service NSW will release $10,500 immediately and the additional $4,500 when you provide the letter. For the $7,500 and $10,000 Grant Service NSW requires you to include Allan Hall’s details for potential compliance.
- Applicants not in one of the ‘highly impacted industries’ require an accountant’s letter to confirm their reduction in turnover. Contact your Allan Hall advisor who can assist with providing this.
Some important notes
- Applicants must have lodged a 30 June 2020 tax return to demonstrate a minimum $75,000 turnover. We understand some clients that are eligible may not have lodged their 2020 tax return, however, we understand there will be other options available to prove the $75,000 turnover requirement. If you are in this position, please contact your Allan Hall advisor.
- Non-employing businesses are not eligible to apply if persons associated with the business, and who derive income from it, have applied for, or are receiving, the Commonwealth Covid-19 Disaster Payment.
- Where a business operates through a Trust, it will be required to provide additional information to demonstrate an aggregated turnover of $75,000 or more is derived through the Trust, as opposed to a business linked to a trust.
The Public Health Orders have created challenges for many businesses and the purpose of this one-off grant is to help cover business expenses and support employment for the first three weeks of the restrictions that were announced on 26 June.
From Week 4, eligible businesses will receive a minimum of $1,500 and a maximum of $10,000 per week under the JobSaver program announced by the NSW Government. Applications for the JobSaver program will be available from 26 July. We will communicate additional information on the JobSaver program when they are released by Services NSW later this week. Please refer to our previous article with what we know so far.
To avoid delays in preparing an application, please also refer to the Get readysection of our other previous article .
In addition, there are a number of options available to employers and employees during this time. Our HR team have prepared an article covering some key aspects, please click here for more information.