The NSW State Government has released the guidelines and eligibility criteria for the JobSaver payment and Micro-Business COVID-19 Business Grant.

JobSaver Payment

Overview

Eligible businesses will receive fortnightly payments backdated to cover costs incurred from week-4 of the Greater Sydney lockdown (from 18 July 2021 onwards). The 2021 COVID-19 Business Grant covers the first three weeks of the Greater Sydney lockdown.business assets

A payment of between $1,500 to $100,000 per week is available; calculated as 40% of your ‘Weekly Payroll’ for the work performed in NSW. Businesses without employees (sole traders) will be able to access payments of $1,000 per week.

There are various criteria (listed below) that must be satisfied before your business is eligible. However, the key test is whether your business can demonstrate a decline in turnover due to the Public Health Order of at least 30% compared to the same period in 2019.

JobSaver will provide cashflow support to impacted businesses to help them maintain their NSW employee headcount on 13 July and help businesses survive and save jobs to support the economy.

The JobSaver payment can be used to cover the cost of business expenses incurred from 18 July 2021, such as wages, utilities, rent, or other business costs.

Eligibility

Businesses that have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum of a 2-week period from 26 June to 28 August 2021 compared to:

  • the same period in 2019, or
  • the same period in 2020, or
  • the 2-week period immediately before lockdown commenced (11 to 25 June 2021)

In addition to the decline in turnover, an entity will be eligible for the JobSaver program if:

  • They have an Australian Business Number (ABN) and can demonstrate that they were physically located or primarily operating in NSW;
  • Have an aggregated annual turnover of between $75,000 and $250 million;
  • For employing businesses, maintain their employee headcount on 13 July 2021; and
  • For non-employing businesses, the business receiving the payments must be the primary income source for the associated person.
  • Businesses that are eligible for the 2021 Covid-19 business grant will generally be automatically eligible for JobSaver but must provide additional information. This is not to say that if you did not qualify for the 2021 Covid-19 business grant, that you will not qualify for JobSaver as there is a wider testing period.

‘Weekly Payroll’ amount and Payment Cycle

  • The basis for the payment is determined by your ‘Weekly Payroll’ amount which is your “W1 - Total Salary, Wages and Other Payments” taken from your most recent Business Activity Statement (BAS) lodged with the ATO prior to 26 June 2021 for a period within the 2020-21 financial year.tax alert
  • You are required to deduct the following amounts from your W1 figure before calculating your ‘Weekly Payroll’ amount:
  • any amounts withheld on behalf of contractors; and
  • any amounts paid to employees who usually work or were based outside of NSW during the relevant period.
  • The W1 amount is then divided by the number of days in the BAS period and multiplied by 7. This will give the Weekly Payroll amount.

For example:

ABC Pty Ltd lodged its May 2021 Business Activity Statement (BAS) with the ATO on 21st June 2021 with a W1 amount of $31,000 for employees who are all based in NSW. ABC’s ‘Weekly Payroll’ amount is calculated as follows:

  • $31,000 divided by 31 days; multiplied by 7 = $7,000

  • $7,000 multiplied by 40% = $2,800

  • ABC’s Weekly Payroll Amount is $7,000 and its weekly JobSaver payment is $2,800

  • For any employing business with a Weekly Payroll amount between $1 and $3,750; an eligible business will receive $1,500 a week

  • Payments will be made in arrears with the first payment backdated from 18 July. You will receive automatic fortnightly payments and are not required to re-apply.

  • You must notify Service NSW if the headcount on 13 July has been reduced. Reductions in employee headcount resulting from circumstances outside of your control (e.g. voluntary resignations) will not be taken as a reduction in employee headcount on 13 July.

EVIDENCE – HIGHLY IMPACTED INDUSTRY

Eligible businesses on the highly impacted industries list will require the following information. A list of highly impacted industries has been included at the bottom of this article.

  • Declare they have experienced the required decline in turnover per the above.

  • If they have employees:

    • declare their employee headcount on 13 June 2021

    • declare they will maintain their employee headcount as of 13 July 2021 for the period the business is receiving payments under the JobSaver program.business customer service

  • If they do not have employees, declare the business is the primary income source for the owner of the business.

  • Provide details of their qualified accountant, registered tax agent, or BAS agent for compliance checking.

  • Submit an annual income tax return or notice of assessment to support annual turnover requirements.

  • Provide evidence of weekly payroll:

    • for businesses that submit a BAS with a W1 amount recorded: their most receive BAS that was submitted to the ATO prior to 26 June 2021 within the 2021-21 financial year;

    • for businesses that submit a BAS without a W1 amount recorded: their 2019-2020 NSW payroll tax reconciliation return; and

    • for businesses that do not submit a BAS: contact Service NSW to discuss alternate evidence of wages and salaries.

EVIDENCE – NOT HIGHLY IMPACTED INDUSTRY

Eligible businesses NOT on the highly impacted industries list will be required to submit the same information detailed above, together with:

  • evidence that they have experienced a decline in turnover of 30% or more due to the Public Health Order over the relevant test period in the form of a letter from their qualified accountant or registered tax/BAS agent; or

  • alternatively, if businesses have previously submitted a letter to verify a decline in turnover for other COVID-19 business support grants, they can resubmit the letter.

Further Considerations

  • Your employees are eligible to receive the Commonwealth COVID-19 Disaster Payments if you are receiving JobSaver.

  • Non-employing businesses (e.g. sole traders & some partnerships) are not eligible for the JobSaver if individuals associated with the business have received a Commonwealth COVID-19 disaster payment since 18 July 2021.

  • Certain entities primarily earning passive income (rents, interest, or dividends), government agencies, local governments, banks, and universities are not eligible for JobSaver.

  • For any questions regarding alternative circumstances or eligibility-related queries please contact your RSM advisor.

For further information

Eligibility for JobSaver payment

List of highly impacted industries

Micro Business Grant

Eligible businesses will receive fortnightly payments of $1,500 to cover business expenses for the duration of the Greater Sydney lockdown. This payment will be made in arrears with the first fortnightly payment backdated from 26 June 2021.

There are various criteria (listed below) that must be satisfied before your business is eligible; however, the key test is whether your business can demonstrate a decline inretail business turnover due to the Public Health Order of at least 30% compared to the same period in 2019.

Once deemed eligible, you will receive automatic fortnightly payments and will not need to re-apply. If you have employees, you must notify Service NSW if you have not maintained the number of employees on 13 July 2021.

The 2021 COVID-19 Micro-Business Grant is designed to provide cash flow support to micro-businesses with an aggregated turnover of more than $30,000 and less than $75,000 in a bid to help survive lockdown and support the economy once restrictions are lifted.

The Micro-Business Grant can be used to cover the cost of business expenses incurred from 1 June 2021 such as wages, utilities, rent, or other business costs.

Eligibility

Businesses that have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum of a 2-week period from 26 June to 28 August 2021 compared to:

  • the same period in 2019, or
  • the same period in 2020, or
  • the 2-week period immediately before lockdown commenced (11 to 25 June 2021)

In addition to the decline in turnover, an entity will be eligible for the JobSaver program if:

  • They have an Australian Business Number (ABN) and can demonstrate that they are physically located or primarily operating in NSW;
  • Have an aggregated annual turnover of between $30,000 and $75,000;
  • Have business costs for which there is no other government support available;
  • Have not applied for either the 2021 COVID-19 Business Grant or the JobSaver scheme;
  • For employing businesses, maintain their employee headcount on 13 July 2021; and
  • For non-employing businesses, the business receiving the payments must be your primary income source.

EVIDENCE to support eligibility

Eligible businesses applying for this grant are required to:

  • Declare they have experienced the required decline in turnover per the above. This will be in the form of either:asset_22.png
    • A letter from a qualified accountant registered tax agent, or registered BAS agent; or
    • A business bank account statement (separate from a personal account); or
    • Business activity statements (BAS).
  • Submit an annual income tax return or notice of assessment to support annual turnover requirements;
  • If they have employees:
    • Declare their employee headcount on 13 June 2021; and
    • Declare they will maintain their employee headcount as of 13 July 2021 for the period the business is receiving payments under this grant.

  • If they do not have employees, declare the business is the primary income source for the owner of the business.

Further Considerations

  • Businesses that received the $1,500 Small Business Fees and Charges Rebate can apply for this grant, however, it cannot be used to pay Government fees and charges that would be covered by the $1,500 Small Business Fees and Charges Rebate.

  • Your employees are eligible to receive the Commonwealth COVID-19 Disaster Payments if you are receiving the grant.

  • Non-employing businesses (e.g. sole traders & some partnerships) are not eligible for the Micro Business grant if individuals associated with the business have received a Commonwealth COVID-19 disaster payment since 18 July 2021.

For any questions regarding alternative circumstances or eligibility-related queries please contact your local RSM advisor.