New COVID-19 support measures to be available from next week
NSW businesses will now receive up to $10,000 per week under a new support measure modelled off 2020’s cash flow boost payment, the government has announced.
The new measure will be available from next week and will provide eligible businesses with a minimum of $1,500 and a maximum of $10,000 per week.
Support will be available to non-employing and employing entities in NSW, including not-for-profits, with an annual turnover between $75,000 and $50 million.
Entities will be eligible if their turnover is 30% lower than an equivalent two-week period in 2019.
The payment rate will be based on 40% of their NSW payroll payments. Non-employing businesses, such as sole traders, will see the payment capped at $1,000 each week.
To receive the payment, applicants will be required to maintain their full-time, part-time and long-term casual staffing level as of 13 July.
The new payments will be jointly funded between the Commonwealth and New South Wales.
NSW Treasurer, Dominic Perrottet, also announced that micro-businesses earning more than $30,000 but less than $75,000 would receive a backdated $1,500 per fortnight payment from Lockdown Week 1 if they have experienced a 30% reduction in turnover.
Disaster payments boosted
With the NSW COVID-19 outbreak proven to be more severe, more dangerous and deemed in the national interest, an upgraded set of arrangements for cooperation with the states and territories was also announced, including:
- Increase to the COVID-19 disaster payment, from $500 to $600 for those who have lost 20 hours or more of work per week, and from $325 to $375 for those who have lost between 8 and 20 hours of work per week.
- Payment eligibility criteria broadened to include all NSW residents and no longer limited to those under lockdown in regions declared hotspots by the Commonwealth. The broadened scope of the payment, however, is limited to residents of NSW, as its cost will be offset by the state government.
- Additional support to both residential and commercial tenants as part of the announcement including a land tax rebate to commercial landlords in a bid to stave off commercial evictions.
- Residential tenancy protections ruling out any evictions for the next 60 days for workers who have seen an income reduction of at least 25% who are “doing it tough”. The same land tax rebates will be made to residential landlords.
- Payroll tax waivers of 25% for businesses with wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover.
More information on small business support grants will be available on the Service NSW website next week.
Applicants will require an accountant’s prepared declaration as part of the grant submission process. Allan Hall will be able to provide assistance to our clients as we have done with previous NSW grant programs.
To prepare a grant application or check proof of identity and auditing requirements, call Allan Hall’s team on the Northern Beaches on 02 9981 2300.
- See previous article: NSW COVID-19 support packages (29/6/21)