In response to the recent lock-down, the Government is now offering three types of grants or payments to support NSW businesses:

 

1. COVID-19 business grant (applies from 26 June to 17 July 2021 only)

One-off tax-free grant of $7,500 to $15,000 (depending on your decline in turnover) to help impacted businesses and not-for-profits across NSW.

one-off tax-free grant depending on decline in turnover experienced over a minimum 2-week period from 26 June 2021 to 17 July 2021, compared to a comparable period:

  1. $7,500 (30%+ decline), or
  2. $10,500 (50%+ decline), or
  3. $15,000 (70%+ decline).

Eligibility

You’re eligible if you have:

  • an annual turnover between $75,000 and $50 million
  • an active ABN (only one application can be submitted per ABN)
  • proof you were operating in June 2021
  • experienced a revenue decline of 30% or more
  • payroll up to $10 million at July 2020
  • employing businesses – maintained your employee headcount from 13 July 2021
  • non-employing businesses – proof that your business is your primary income source (50% or more of your total income).

Applications

open: 19 July 2021

close: 13 September 2021

Note: If you are eligible for this grant, you may also be eligible for the JobSaver payment (below).

 

2. JobSaver payment (applies from 18 July to 30 November 2021)

Fortnightly payments between $1,000 and $100,000 a week for the period from 18 July 2021 to eligible employers and sole traders (including not for profits):

  • Employing businesses: payments will be 40% of the weekly payroll for work performed in NSW with a minimum of $1,500 and maximum of $100,000 (up from $10,000)
  • Non-employing business: $1,000 a week

Eligibility

You’re eligible if you have:

  • an annual turnover between $75,000 and $250 million (larger businesses in the hospitality, tourism and recreation industries with a turnover more than $250 million and up to $1 billion may also be eligible)
  • an active ABN (only one application can be submitted per ABN)
  • proof you were operating in June 2021
  • proof that you experienced a revenue decline of 30% or more due to the COVID-19 restrictions
  • employing businesses – maintained your employee headcount from 13 July 2021 if you received payments from the start of JobSaver, or otherwise from the day before the fortnight that you first experienced the required decline in turnover
  • non-employing businesses – show that your business is your primary income source (50% or more of your total income).

Applications

open: 26 July 2021

close: 18 October 2021

 

3. COVID-19 micro-business grant (applies from 26 June to 30 November 2021)

A fortnightly tax-free grant of $1,500 to help impacted micro-businesses and not-for-profits across NSW that have a turnover between $30,000 and $75,000.

Eligibility

You’re eligible if you have:

  • an annual turnover between $30,000 and $75,000
  • an active ABN (only one application can be submitted per ABN), or proof you were operating in June 2021
  • experienced a revenue decline of 30% or more
  • employing businesses – maintained your employee headcount from 13 July 2021 if you receive payments from the commencement of the micro-business grant, or from the day immediately prior to the fortnight you first experienced the required decline in turnover
  • non-employing businesses – show that your business is your primary income source (50% or more of your total income).

Applications

open: 26 July 2021

close: 18 October 2021

 

If you’re receiving the Commonwealth COVID-19 Disaster Payment

Non-employing businesses, such as sole traders, are NOT eligible to apply if individuals associated with and deriving income from the business have received a Commonwealth COVID-19 Disaster Payment for the same period that they’re receiving JobSaver/COVID-19 business grant/COVID-19 micro-business grant.
However, if you are an employing business, you can still receive the Commonwealth COVID-19 Disaster Payment if you’re receiving JobSaver.

 


Disclaimer:
Please note that this article is intended to be a general guide only, and should not be seen to constitute legal or tax advice. Where necessary, you should seek a second professional opinion for any legal or tax issues raised in your personal or business tax affairs.

Emma Zhao

Emma Zhao

Chartered Accountant | Registered Tax Agent | SMSF Speacialist™ emma@sencilloaccounts.com.au