Increased COVID-19 Support Package Announced for NSW by Federal and State Governments

Small and Medium Business Support Payments

The Commonwealth and NSW Governments will jointly fund a new Small to Medium Business Support payment to eligible (non-employing and employing) entities in NSW, including not for profits.

Eligibility

Entities will be eligible if

• Their turnover is 30 per cent lower than an equivalent two-week period in 2019
• Their annual turnover is between $75,000 and $50 million
• They maintain their full time, part time and long-term casual staffing level as of 13 July 2021

Payment Amount

• Eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1,500 and a maximum of $10,000 per week
• For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week

Find out more

• Register your expression of interest on the Service NSW website so that you are notified when available

• Consult with your advisor in regards to the various eligibility requirements including decline in turnover calculations.

• Apply via the Service NSW website from 26 July – your business will need a MyServiceNSW Account and business profile setup if it doesn’t already.

NSW Government’s Small Business Grants

The NSW Government has extended and expanded the previously announced grants program with grants between $7,500 and $15,000 available to eligible businesses with annual Australian wages up to $10 million.

Available Grants Include:

• Small Business COVID-19 Support Grant
• Hospitality and Tourism COVID-19 Support Grant  (note this grant may become redundant – we are awaiting more details)

The NSW Government has also announced a Micro Business Grant of $1,500 per fortnight for eligible businesses with turnover between $30,000 and $75,000.

Find out more

• Consult with your advisor in regards to the various eligibility requirements including decline in turnover calculations.

• Apply via the Service NSW website from 19 July (Small Business COIVD-19 Support Grant) or 26 July (Micro Business Grant).

COVID-19 Disaster Payment

The Federal Government has expanded the existing COVID-19 Disaster Payment support available to individuals living in a declared COVID-19 hotspot

From week 4 of the lockdown, weekly payments can be claimed by individuals who have lost more than 8 hours or a full day of work in a week.  The payments are as follows:

• lost 20 hours or more – $600 (previously $500)
• lost between 8 and 20 hours – $375 (previously $325)

Individuals will need to meet additional eligibility criteria.

Find out more

• Assess your eligibility against the criteria

• Apply via Services Australia website

Commonwealth Business Tax Relief

Additional Commonwealth tax relief was also announced:

• NSW small business grants will be tax exempt

• Administrative relief will be provided to NSW taxpayers facing hardship. This includes reduced payment plans, no interest charged on late payments and varying instalments on request.

Find out more

• Speak to your advisor if you’re experiencing difficulties in paying your tax debts or upcoming tax liabilities. We can assist you with setting up payment plans with the ATO and/or varying tax installments.

Payroll Tax Deferral and Relief

All businesses paying payroll tax in NSW will be able to defer their payroll tax payments until 7 October 2021

Businesses with annual payrolls between $1.2m and $10m may be eligible for a payroll tax relief of 25% of the business’ annual liability.

Find out more

• Prepare your 2020/21 payroll tax annual reconciliation and July and August monthly payroll tax calculations as early as possible so you can start planning your cashflow.

Landlord Support

Land Tax relief of up to 100% of the land tax liability will be available to residential and commercial landlords that pay land tax and reduce rents for their tenants.

For residential landlords that reduce their tenant’s rent and not liable to land tax, a grant of up to $1,500 may be available on application if qualifying criteria are met.

Find out more

• More details will be available once released by the NSW Government

• It’s expected that applications will be made through Revenue NSW once available

Tenant Eviction Moratorium

Residential tenants who have lost 25% or more of their income due to COVID-19 will have a moratorium on eviction for 60 days.

Specific criteria for eligibility and details of how this measure will apply are expected to be released shortly, with NSW legislation to follow.

• Discuss with your landlord if you are having difficulty paying rent

• More details will be available once released by the NSW Government.

Mental Health Support

The Federal and NSW governments will provide an additional $17.35m to support mental health programmes in NSW targeted through existing providers.

• If you need extra support during this time, please contact one of the recommended NSW Health support lines