As a result of the current NSW lockdown restrictions, the NSW Government has today announced cash grants of between $5,000 to $10,000 for small businesses, and payroll tax deferrals for all employers, among other measures.
Small business cash grants
There will be three tiers of grants available for small businesses primarily operating in NSW based on percentage decline in turnover as a result of the lockdown restrictions over a two week period from 26 June:
- Tier 1: 70% decline in turnover – $10,000
- Tier 2: 50% decline in turnover – $7,000
- Tier 3: 30% decline in turnover – $5,000
In respect of the above grants, the NSW Government will group the grants into two streams:
Stream 1: Small business COVID-19 support grant (less than 20 employees)
Small businesses with an annual turnover of more than $75,000 but below the NSW Government 2020-21 payroll tax threshold of $1.2m can qualify and subject to certain other condition.
Stream 2: Hospitality and Tourism COVID-19 support grant
This is targeted at Tourism and Hospitality business with annual turnover of more than $75,000 but below $10m in annual Australian wages.
- An option will be given to defer payroll tax payments due in July 2021
- Extension to use Dine and Discover vouchers until 31 August 2021
Further details can be found in the media release (below) and the tax team will provide further details as they come to light.
The Government has indicated that eligible businesses will be able to apply for the grants through Service NSW from later in July subject to satisfying the decline in turnover requirements.
Further details will also be provided on the Service NSW website.
Media release can be found at: https://www.nsw.gov.au/media-releases/major-new-covid-19-support-package (external website)
We are committed to supporting businesses during this challenging time. For further information or assistance, please contact your Bentleys NSW advisor.
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.