Small business COVID-19 support grant for NSW

Business Insights

The NSW State Government, in its efforts to reduce the spread of COVID-19 in the community, has imposed further lockdowns and restrictions on Greater Sydney.

The NSW government, in conjunction with the federal government as announced further COVID-19 business support (2021) items which are highlighted here.These restrictions will place further pressure on individuals, households, and businesses that are already feeling the effects of reduced trade, and income over the past 18 months as we have learned to live with COVID-19.

The NSW government, in conjunction with the federal government, has announced further COVID-19 business support (2021) items which are highlighted below:


2021 COVID-19 Business Grant

There are two streams which this support is available under

  • Small Business COVID-19 Support Grant; or
  • Hospitality and Tourism COVID-19 Support Grant

Eligible businesses can claim grants of up to $15,000 from 19 July 2021 which can be used for business expenses such as rent, utilities, and wages.

There are eligibility criteria (listed below) that determine which stream your business is eligible for, however, the fundamental criteria is that the business must demonstrate a decline in turnover of at least 30%. The higher the decline, the higher the potential grant.

Details are yet to be finalised and released however we understand that the calculation for this decline will be to compare the current turnover for a minimum two-week period after lockdown to a two-week period in June/July 2019.

At this stage, there has been an indication that alternative tests will be available for businesses that were not operating in June/July 2019.

Once the decline in turnover is established, eligibility under the two streams is as follows.

SMALL BUSINESS, Hospitality and Tourism COVID-19 Support grants are now available1. Small Business COVID-19 Support Grant - Eligibility

  • Have an annual turnover of between $75,000 and $50m;
  • Hold an Australian Business Number and can demonstrate that you are physically located or primarily operating in NSW;
  • Have fewer than 20 full-time equivalent employees;
  • Have total Australian annual wages of below the NSW government 2021 payroll tax threshold of $1.2m;
  • Have not applied for or received the Hospitality and Tourism COVID-19 Support Grant; and
  • Have business costs for which there is no other government support available.

2. Hospitality and Tourism COVID-19 Support Grant – Eligibility  

  • Have annual turnover of between $75,000 and $50m;
  • Have an ANZSIC code that is classified as a tourism or hospitality business;
  • Hold an Australian Business Number and can demonstrate that you are physically located or primarily operating in NSW;
  • Have total annual Australian wages below $10m;
  • Have not applied, or received, a 2021 Small Business COVID-19 Support Grant; and
  • Have business costs for which there is no other government support available.

Cashflow Support

A cashflow payment of between $1,500 to $10,000 per week calculated on 40% of your NSW Payroll payments of your business.

Businesses without employees (sole traders), will be able to access payments of $1,000 per week.

Eligibility is determined as follows:

  • Have annual turnover of between $75,000 and $50m;
  • Demonstrate a 30% decline in turnover;
  • Maintain your staffing level as of 13 July 2021;
  • Be impacted by the current Greater Sydney COVID-19 restrictions.

blue_illustration_asset_94x.pngSavings Jobs

A support program funded jointly by the NSW and Commonwealth governments to maintain employment of staff for small and medium businesses impacted by the current health restrictions.

Micro Business Grant

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%. The businesses will be eligible for a $1500 payment per fortnight of restrictions.

Payroll tax

Payroll tax waivers of 25% for businesses with Australian wages of between $1.2m and $10m have experienced a 30% decline in turnover, as well as payroll tax deferrals and interest-free repayment plans. Additionally, an administrative concession has been provided to extend the due date of the 2020-21 annual payroll tax reconciliation lodgement to 7 October 2021.

Attention items for landlords

Landlords with commercial and residential properties should also be aware of the following developments:

  • Land tax relief equal to the value of rent reductions provided by commercial, retail, and residential landlords to financially distressed tenants, up to 100% of the 2021 land tax year liability;
  • A capped grant of up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants;
  • Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers the loss of income of 25% due to COVID-19 and meets a range of criteria;
  • No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation;

Further details of the above will be coming out over the coming days and weeks around eligibility and details however businesses can register with Service NSW to be notified once the financial support programs are available.  We recommend that irrespective of your situation, you register your business.


ACTION PLAN:

  1. Register your business to receive updates as they become available https://www.service.nsw.gov.au/covid-19-business-support-2021 
  2. Ensure your business and contact details are up to date with the Australian Business Register including business address and business ANZIC code
  3. Prepare your 2021 payroll tax lodgement

For more information about small business COVID-19 support grant for NSW businesses

For more information, please do not hesitate to reach our RSM team member for further support and assistance with eligibility and application.