NSW COVID-19 support package announced
The NSW Government has announced a comprehensive economic support package worth billions of dollars aimed at helping businesses and people right across the state fight through the current COVID-19 lockdown. Under a new combined support package, the COVID-19 Disaster Payment will be further expanded and increased.
Here’s a list of key measures announced so far:
- An extension to the previously announced business grants program. From Monday 19 July, businesses, sole traders and not-for-profits impacted by lockdown may be eligible for the following grants:
- $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
- A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30 per cent. The businesses will be eligible for a $1500 payment per fortnight of restrictions.
- Businesses with annual turnover between $75,000 and $50 million will be able to receive a cash flow boost of up to $10,000 per weekas long as you can show a 30% fall in turnover. You must also show that you are not reducing your team headcount as of 13 July 2021.
- Payroll tax waivers of 25 per cent for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover, as well as payroll tax deferrals and interest free repayment plans
- 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
- No forced evictions for businesses who have lost more than 25% revenue
- Deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2022
To help avoid delays in completing your application:
- ensure your business and contact details are up-to-date with the Australian Business Register (ABR)
- ensure your personal, contact and business details are up-to-date in your MyServiceNSW Account and your business profile
- if you don’t have one, create a MyServiceNSW Account and business profile.
- COVID-19 Disaster Payment – From week four of the lockdown, eligible workers will receive:
- An increase in their COVID-19 disaster payment income support to $600 per week if they have lost more than 20 hours of work
- Workers who have lost 8-20 hours, will receive $375
- A capped grant of up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants
- Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability
- Introduction of legislative amendments to ensure a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25 per cent due to COVID-19 and meets a range of criteria.
- No recovery of security bonds, or lockouts or evictions of impacted retail and commercial tenants prior to mediation
Where and how to apply
The full eligibility criteria for both the business and individual support measures are currently being developed by Service NSW and Services Australia, with the information provided above current as of 13 July. Applications have not opened for the grants.
When applications do open, it will be through the Services NSW website.
The team are here to help you. If you have any questions, please reach out to your accountant.