Accessing financial support for your business during the COVID-19 lockdown
July 19, 2021
Business support packages have been announced for NSW businesses and other states that have been affected by the latest COVID-19 restrictions.
If your business has been impacted by the latest COVID-19 restriction, there a number of grants and programs that your busienss may be eligible for, including a one-off grant of up to $15,000 for NSW businesses, the joint NSW-Commonwealth JobSaver program, and grants for microbusinesses. Payroll support is also available.
To find out more, continue reading below.
COVID-19 Business Grant: up to $15,000 one-off payment
Applications open: 19 July 2021 and clost 11.59pm 13 September 2021
If you're a business, sole-trader or non-profit organisation and you've been impacted by the Greater Sydney COVID-19 restrictions, then you may be eligible for a $7,500, $10,000 or $15,000 grant to help with the first three weeks of lockdown.
The 2021 COVID-19 business grant provides cash flow support for businesses that experienced reduced demand or had to close due to the public health orders. Eligible applicants across NSW can use the grant for business costs incurred from 1 June 2021, including:
- utilities, wages and rent
- financial, legal or other advice to support business continuity planning
- marketing and communications activities to develop the business
- the cost of perishable goods that can no longer be used
- other activities to support the operation of the business.
The grant amounts available will be dependent on the decline in turnover over a minimum two-week between 26 June 2021-17 July 2021 compared to the same period in 2019:
- $7,500 for a decline of 30% or more
- $10,500 for a decline of 50% or more
- $15,000 for a decline of 70% or more
Applications can only be made for one tier and only one grant is available for a single ABN. Multiple businesses under a single ABN are eligible for one grant only.
Businesses and non-profits on the NSW border with Victoria that were impacted by earlier stay-at-home orders beginning 27 May may be able to use a different comparison period to demonstrate the decline in turnover over minimunmtwo weeks from 27 May to 17 July 2021.
Eligibility criteria is available from the Services NSW website, however note that at time time of publishing, the application page was offline due to substantial demand for support. Please contact us on 02 9957 4033 for additional guidance.
To apply for the grant, you will need to provide a letter from your accountant, registered tax agent or registered BAS agent, submit an Australian tax return, Notice of Assessment, or other documentation that demonstrates your business had an aggregated turnover between $75,000-$10 million, your ABN or ACN number and other identification documentation. Successful applications may also be subject to audit, therefore it is important that your tax and business documentation is up-to-date and available for review if required.
If your business does not meet all of the elibility criteria, you may still apply for the grant provided that there is sufficient evidence to support alternative circumstances.
Job Saver: Late July
JobSaver is 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.
If you've experienced a decline of 30% or more and have turnover between $75,000 and $50 million, then you may be eligibe to receive:
- Employing businesses: 40% of weekly payroll, with a minimum payment of $1,500 per week and a maximum payment of $10,000 per week
- Non-employing business: $1,000 per week
Micro business grant: Late July
If you're a micro business (small business or sole trader with annual turnover of more than $30,000 and under $75,000) impacted by the current Greater Sydney COVID-19 restrictions, you may be able to apply for a $1,500 payment per fortnight of restrictions from late July 2021. Your turnover must have reduced by 30% or more and provide the primary income source for a person associated with the business.
Payroll tax deferrals (now)
NSW businesses can opt in to defer payments on the 2020-21 annual reconciliation return and wages paid in July and August, with interest free repayment plans for up to 12 months available. Payments will instead be due on 7 August and 7 September until 7 October 2022.
Payroll Concessions (now)
NSW Businesses will be able to access concessions to help reduce overheads for eligible businesses with a 30% decline in turnover.
This includes a 25% reduction in 2021-22 payroll tax where there is a 30% decline in turnover for businesses with Australian wages up to $10 million.
Retail and Commercial Leasing Laws
As health orders impact retail businesses and commercial leases, there are new protections to protect tenants and support landlords. Before action can be taken by a landlord with regards to rent, eviction or locking out tenants, they will need to attempt mediation. Landlords that reduce rent will be eligble for a land tax concession. Tenants must also provide landlords with evidence showing they are impacted by by the lockdowns. The Retail and other Commercial Leases (COVID-19) Regulation 2021 applies from 14 July 2021 until 20 August 2021. For more detailed guidance on what this may mean for you, please contact us.
Get assistance and more information
For help with accessing any of the support outlined above, please contact us on 02 9957 4033 to speak to our team.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.