Applications for 2021 COVID Business Grant now open

The previously announced 2021 COVID Business Grant ('the Grant') is now open for applicants experiencing difficulties during the latest NSW lockdown. The applications are open from 19 July 2021 and will close on 13 September 2021 at 11:59pm.

The intention of The Grant is to help businesses survive the lockdown so they can continue to support employment and the economy after restrictions are lifted. 

The Grant will provide a one-off payment to support businesses with cashflow and can be used for business expenses such as rent, utilities and wages, for which no other government support is available. It is available to businesses across New South Wales that meet the eligibility criteria outlined in the following sections.

Please Note
Businesses that received previous COVID-19 small business grants, including the 2020 Small Business COVID-19 Support and Small Business Recovery grants, can apply for this Grant.

Non-employing businesses are not eligible to apply if persons associated with the business, and who derive income from it, have applied for, or are receiving, the Commonwealth COVID-19 Disaster Payment.

Available Funding
Eligible businesses (including non-employing businesses such as non-employing sole traders) and not-for-profit organisations can apply for a one-off grant of $7,500 (tier one) or $10,500 (tier two) or $15,000 (tier 3) via one application:

• $7,500 (tier one)
  Businesses that have experienced a decline in turnover of 30% or more due to the Public Health Orders will be eligible for a grant of $7,500.
• $10,500 (tier two)
  Businesses that have experienced a decline in turnover of 50% or more due to the Public Health Orders will be eligible for a grant of $10,500.
• $15,000 (tier three)
  Businesses that have experienced a decline in turnover of 70% or more due to the Public Health Orders will be eligible for a grant of $15,000.

Please Note
Eligible businesses may only receive one grant tier. Meaning, only one grant is available for a single ABN. Multiple businesses under a single ABN are only eligible for one grant.

Eligibility Criteria
Businesses and not-for-profit organisations that have been impacted by the Public Health Orders will be eligible for the grant if their:

• Annual turnover is between $75K and $50M
• Annual wages are less than $10M in FY2021
• Have experienced a decline in turnover compared to 2019, for a period of at least two weeks between 26 June 2021 and 17 July 2021. Three different grant amounts are available depending on the decline in turnover experienced during the restrictions (tier one or tier two or tier three)
• Have experienced a turnover decrease due to the Public Health Orders
• Must have expenses of the amount being granted that are not covered by another grant
• Must have an ABN registered in NSW or operating in NSW on application to Service NSW 
• Must maintain their full time, part time and long term casual staffing level as of 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme.

Applications
You can apply via Service NSW website.

Supporting Evidence
Where evidence is required to show total annual Australian wages, and decline in turnover, this will be in the form of a letter from one of the following Independent Practitioners: 

• Qualified accountant as defined in the Corporations Act 2001 
• Registered tax agent as defined under the Tax Agent Services Act 2009; or 
• Registered BAS agent as defined under the Tax Services Act 2009. 

You can download Service NSW letter template here > 2021 COVID-19 business grant accountant letter template – DOCX

For those on "highly impacted industries" list – no accountant letter will be required. Most likely, you will still need to provide a letter if you are applying for the $15,000 Grant.

If you are unable to provide a letter from an accredited accountant or tax professional to verify your decline in turnover or have problems with your online application, you should contact Service NSW on 13 77 88.

This article is intended to provide general information only, and is not to be regarded as legal or financial advice. The content is based on current facts, circumstances, and assumptions, and its accuracy may be affected by changes in laws, regulations, or market conditions.  Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group or associated entities, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused. Readers are advised to consult with qualified professionals for advice specific to their situation before taking any action.