2021 COVID-19 Support Package (NSW)
The Commonwealth Government and NSW Government will both be offering financial support to NSW businesses impacted by the recent COVID-19 restrictions and stay-at-home orders. We have tabled the key components of the 2021 COVID-19 package below.
There is limited detail available at the moment and further information will soon be made available by Service NSW (for the packages offered by both the Commonwealth and NSW).
|Small and medium business support payments||
From week four of the lockdown (we understand this to mean the week starting 19 July), small and medium business will receive support payments, similar to the cash flow boost released last year. This will be administered by Service NSW.
Specifically, the support payments will be available for NSW businesses, including not-for-profits, with an annual turnover of between AU$75,000 and AU$50 million which can demonstrate a 30 percent reduction in turnover compared to an equivalent two week period in 2019.
Eligible entities will receive 40 percent of weekly payroll with a payment of between AU$1,500 to a maximum of AU$10,000 per week, subject to staffing levels being maintained.
Businesses can register their interest now at www.service.nsw.gov.au.
|NSW business grants||
NSW businesses with Australian wages below AU$10 million can claim grants between AU$7,500 and AU$15,000 to cover the first three-weeks of restrictions. 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, as set out below:
In addition, micro businesses, (i.e., small businesses or sole traders with a turnover of between AU$30,000 and AU$75,000), which experience a decline in turnover of 30 percent, will be eligible for a AU$1,500 payment per fortnight of restrictions.
|Commonwealth business tax relief||
To complement the NSW grants program, the Federal Government will:
The NSW Government will provided support to tenants and landlords (both residential and commercial) as follows:
|Payroll tax waiver||
NSW businesses with Australian wages between AU$1.2 million and AU$10 million that have experienced a 30 percent decline in turnover will benefit from a 25 percent payroll tax waiver, as well as payroll tax deferrals and interest free repayment plans.
The NSW Government will offer a support package for the accommodation sector worth AU$26 million.
The Commonwealth is providing "disaster payments" to individuals who are unable to work during the lockdown period. From week 4, the payments are increased to AU$600 per week (for employees that work more than 20 hours per week) and AU$375 per week (for employees that work less than 20 hours per week).
The liquid asset test (which restricted the payments to individuals with less than AU$10,000 in available cash) has been removed.
The payments are administered via Centrelink and additional information is available here: COVID-19 Disaster Payment - NSW eligibility rules - Services Australia.