COVID-19: NSW small business support grant now available

On 3 April 2020, the New South Wales (NSW) Government announced a third round of COVID-19 support measures in the form of a $10,000 grant targeted at small businesses with employees that have been significantly impacted by the COVID-19 lockdown measures.

To fund the support, the NSW Government has set aside $750 million in a Small Business Support Fund, applying the same processing and payment infrastructure that was previously used during the NSW bushfires.

Conditions

To qualify for the $10,000 grant, the business must satisfy the following key conditions and have:

  1. Between 1-19 employees and turnover of more than $75,000;
  2. Payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;
  3. An Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
  4. Been highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020 (see below);
  5. Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
  6. Made an application and the business must provide appropriate documentation.

In terms of condition 4 above, the NSW Government has indicated this means the business operates in a significantly affected industry. 

Affected industries include:

  • Retail trade
  • Accommodation and food service
  • Rental, hiring and real estate services
  • Administrative and support services
  • Arts and recreation services.
  • The NSW Treasurer has indicated that the measure is aimed at small, local businesses, and “Many local cafés, restaurants, corner shops, gyms and small accommodation providers will be eligible to apply,”.

The following table summarises the key information to access the NSW small business grant.

 EFFECTIVE FROMCONDITIONSBENTLEYS COMMENT
SMALL BUSINESS GRANT
$10k grant to certain small businesses that have been adversely affected by COVID-19Applications open 17 April 2020 and close 1 June 2020. Funds expected to be paid shortly after processing of applicationEmploys between 1-19 employees as at 1 March 2020

Payroll under NSW threshold of $900k

In an affected industry being retail, accommodation and food service, rental, hiring and real estate services, administrative and support services, arts and recreation services

Supporting documentation to be submitted with online application
Will be important for affected business to make the online application between 17 April 2020 and 1 June 2020 in order to be considered

Next steps

The application form will be on the Service NSW website by 17 April 2020 and will remain open until 1 June 2020.

Further info can be found here: NSW Government: Grants, loans and financial assistance (external website)

For an overview of all Australian fiscal support measures – at federal, state, and territory levels – visit Bentleys’ COVID-19 tax summary update.
Contact your local Bentleys advisor for further information. We are doing everything we can to help businesses come out of this challenging time in good shape.

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.

COVID-19: A summary of Australia's tax measures

The governments of Australian states and territories have also released independent stimulus packages. For an overview of all Australian measures, click here.

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