As outlined in our earlier Allan Hall mailout, in addition to the Federal Government’s stimulus measures to support businesses and individuals through the COVID-19 pandemic, Australia’s state and territory governments are also providing support measures for small businesses throughout the country.
As the majority of our clients are based in NSW, we wanted to ensure that you were aware that applications are now open for the Small Business COVID-19 Support Grant that was announced by the NSW Government on 2 April 2020.
Overview
The NSW Government is providing a Small Business COVID-19 Support Grant of up to $10,000 to eligible small businesses and non-profits that have been subject to closure or are highly impacted following the NSW government health directions on 31st March 2020.
Full details and terms and conditions can be found in the guidelines. Here is a quick rundown:
Is my business eligible?
To be eligible for this grant, you must:
- Be a small business or non-profit organisation based in NSW
- Have a registered ABN and employ 1-19 full time workers as at 1 March 2020
- have an annual turnover of more than $75,000
- Be able to report a payroll below the NSW 2019-2020 payroll tax threshold of $900,000
- have been listed as highly impacted by Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020
- Demonstrate at least 75% decline in turnover compared to the same two-week period in 2019, as a result of COVID-19 (for businesses that have been in operation for less than 12 months, refer to the guidelines)
- Have unavoidable business costs that are not otherwise covered by other NSW and Federal Government assistance measures.
NOTE: If you are a sole trader and you do not employ staff, you are not eligible for this assistance.
Does my industry qualify as highly impacted?
Industries listed as being highly impacted include:
- Retail trade (excluding food retailing)
- Accommodation and food service
- Rental, Hiring and Real Estate services
- Administrative and support services
- Arts and Recreation services
- Information Media and Telecommunications
- Transport
- Education and Training
- Wholesale trade
For a more comprehensive list, please refer to Attachment A of the guidelines
What if my industry is not listed as highly impacted?
You may still apply for the grant if you can demonstrate evidence of a decline in turnover of 75% compared to the equivalent period (of at least 2 weeks) in 2019.
In this case, the regulation requires you to provide a letter from your Accountant to support that you meet certain criteria. To assist you in this regard, we have drafted a template which we can customise for your unique circumstances. Please contact your Advisor if this applies to you.
How can the grant be used?
Funds received from the NSW Government Small Business COVID-19 Support Grant may only be used for unavoidable business expenses that are not supported by other government funding. These include:
- utilities
- council rates
- telecommunication charges
- insurance payments
- professional advice
- wages for an employee not eligible for JobKeeper payments
- franchise fees
- paying creditors, if your business is closing
NOTE: recipients may be subject to an audit and may need to demonstrate how they spent the funds.
How do I apply?
Applications are now open and will close on 30 June 2020.
You can apply online at Service NSW and detailed instructions are provided.
To avoid frustrations, please ensure you gather all the information you require prior to applying – this is also outlined on this Service NSW link.
If you are not able to apply online, please call Service NSW on 13 77 88.
NOTE: As you may be audited in the future, please keep all documentary evidence related to your application and the assistance provided for a minimum of 5 years.
When will I receive payment?
If your application is approved, payment will be transferred within 10 business days of your application.
Assistance in other states
For an updated list of funding and measures to support businesses in states other than NSW, please refer to the links below:
Need Help?
If you have any questions regarding the NSW Small Business COVID-19 Support Grant; or would like assistance with your application or supporting documentation, please contact your Allan Hall Business Advisor on 02 9981 2300.