As you would be aware the lockdown across large parts of NSW has been extended until the end of the month given the rising number of COVID infections. Workers and businesses impacted by the extended lockdown in NSW are to receive extra financial support from next week, Prime Minister Scott Morrison has announced.
New SMB Support Payment available from week four
A new measure, "Saving Jobs", was announced to provide those small and medium businesses with a 30% fall in turnover with weekly tax-free financial support in a scheme modelled on last year's Boosting Cash Flow.
This measure will be co-funded by the NSW Government and administered through Service NSW with applications expected to open soon. It is anticipated that more information will be released later this week as no information has yet been provided with respect to how the application process will work.
From week four of the lockdown, the Commonwealth will fund 50 per cent of the cost of a new small and medium business support payment. Eligible entities will receive 40 per cent of their NSW payroll payments, at a minimum of $1,500 and a maximum of $10,000 per week.
Entities will be eligible if their turnover is 30 per cent lower than an equivalent two week period in 2019.
The new small to medium business support payment will be available to non-employing and employing entities in NSW, including not for profits, with an annual turnover between $75,000 and $50 million.
To receive the payment, entities will be required to maintain their full time, part time and long term casual staffing level as of 13 July 2021.
For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week.
Covid Disaster Payments for individuals
The previously announced Covid Disaster Payments to individuals have increased from $325 and $500 per week to $375 and $600 per week depending on the number of hours of work lost, with the obligation to report weekly now waived.
Small Business Grants
As well as funding 50% of the Saving Jobs measure and the extension of the Covid Disaster Payments to wider NSW, NSW has also announced that applications for the previously announced small business grants will open from 19 July.
The grant can be used for business expenses such as rent, utilities and wages, for which no other government support is available.
Three different grant amounts will be available depending on the decline in turnover experienced during the restrictions:
- $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.
Other measures are outlined below:
Micro business grants
Small businesses and sole traders with annual turnover of between $30,000 and $75,000 will be able to apply for micro business grants of $1,500.
Businesses must experience a decline in turnover of 30% to be eligible. The $1,500 payment will be available to micro businesses for every fortnight restrictions continue.
Payroll tax waivers
The NSW government announced payroll tax waivers of 25% for businesses with wages bills of between $1.2 million and $10 million that experience a 30% decline in turnover.
Businesses can also access payroll tax deferrals and interest free repayment plans.
Land tax relief
Similar to last year, commercial tenants will benefit from land tax relief. Commercial, retail and residential landlords will be eligible for land tax relief that's equivalent to the rent reductions they give their tenants and up to 100% of their 2021 land tax year liability.
If more information becomes available, we will keep you informed and we look forward to assessing in more detail as applications open.