(Originally written 20 July 2021, last updated 2 August 2021)
With the NSW lockdown extended and the focus on reaching vaccination milestones, the NSW Government has released further details of the payment support subsidies available for small to medium sized businesses that were previously announced on 13 July 2021.
You can read about the 13 July 2021 announcements in our earlier Bentleys article entitled new cashflow boost and other measures.
Application dates and other details have now been released for some of the COVID-19 support packages for businesses, amongst other measures, post the 13 July 2021 announcements.
The current key dates for NSW businesses to note are as follows:
- $15,000 COVID-19 Business Grant – applications opened on 19 July 2021 and closes on 13 September 2021
- Micro Business Support Grant – applications opened on 26 July 2021 and closes on 18 October 2021
- Job Saver Scheme – applications opened on 26 July 2021 and closes on 18 October 2021
- NSW Payroll Tax Concessions – application dates to be provided by end of August 2021
- 2021 Land Tax COVID-19 Relief – further details on application dates to be provided
In certain cases, Service NSW has indicated a letter from your accountant may be required to support certain eligibility requirements. Bentleys is ready to assist your business with any relevant applications including assessing your eligibility and assessments of your turnover levels.
Below is a summary of the key support measures on offer together with relevant conditions.
Summary of key support measures for businesses in NSW
|$15,000 COVID-19 Business Support Grant||Key Dates||Conditions||Bentleys comment
|One off lump sum cash grant of up to $15,000 for businesses with annual turnover above $75,000 and annual Australian wages up to $10m|
$15,000 – at least 70% turnover decline
$10,500 – at least 50% turnover decline
$7,500 – at least 30% turnover decline
|Effective start of lockdown from 26 June 2021. |
Online applications opened through Service NSW on 19 July 2021 and closes on 13 September 2021.
Covers first 3 weeks of lockdown.
|• Turnover between $75,000 and $50m|
• Wages up to $10m
• 30% turnover decline *
• Maintain employee headcount from 13 July 2021
*There is at least a 30% decline in turnover from 26 June 2021 to 17 July 2021 compared to the same period for FY19 (note not FY20).
** New businesses that cannot satisfy the relevant decline can potentially use a shorter period prior to 26 June 2021 to test the relevant decline.
*** For businesses on the Victorian border impacted by the NSW lockdown an earlier testing period over a minimum 2 week period between 27 May 2021 and 17 July 2021 compared to the same period in 2019.
|The grant will be available to businesses, sole traders and not-for-profit organisations in NSW.
Turnover based on “aggregated turnover” as defined in income tax legislation as well as GST definition.
Wages are measured as at 1 July 2020 based on NSW Payroll Tax Act.
Businesses with ABNs registered outside NSW but operating in NSW must provide evidence to demonstrate this as at 1 June 2021 (e.g. commercial rates and lease agreements)
Business that do not submit BAS or businesses that operate through a trust structure will need to provide further information to Service NSW.
Entities primarily earning passive income (rents, dividends and interest) do not qualify. Certain other businesses also ineligible such as companies in liquidation.
Non-employing businesses are not eligible if persons associated with the business are receiving the Commonwealth COVID-19 Disaster Payment for workers.
Payment to be tax free.
|Micro Business Support Grant||Key Dates||Conditions||Bentleys comment
|Fortnightly tax-free payment of $1,500 per fortnight of restrictions||Online applications through Service NSW to opened on 26 July 2021 and closes on 18 October 2021.||• Turnover between $30,000 and $75,000|
• Must experience a decline in turnover of at least 30% due to lockdown from 26 June 2021 until lockdown ends (expected).
• Has fewer than 20 full time employees as at 1 June 2021.
|Turnover and decline in turnover based on same rules as for COVID-19 Business Support Grant described above.
Sole traders cannot qualify for both this grant and the COVID-19 Disaster Payment targeted at workers.
Payments to be tax free.
|JobSaver ||Key Dates||Conditions||Bentleys comment
|Fortnightly payments paid to businesses who maintain headcount.|
Payment based on 40% of weekly payroll with minimum payment of $1,500 per week and maximum payment of $100,000 per week (previously $10,000 per week).
Non-employing businesses will receive $1,000 per week.
Payments are to be made fortnightly.
|Online applications through Service NSW opened on 26 July 2021 and closes 18 October 2021.||• FY20 Turnover of between $75,000 and $250m (previously $50m)|
• At least 30% turnover decline due to lockdown from 26 June 2021 until lockdown ends (expected) compared to same period in FY19.
• Maintain headcount as at 13 July
|Turnover concepts same as COVID-19 Business Support Grant described above.
Businesses with larger payrolls above $400,000 per week will be subject to a maximum support cap of $100,000 per week.
Payments to be tax free.
|Payroll Tax Concessions||Key Dates||Conditions||Bentleys comment
|25% Reduction for FY21 payroll tax where at least 30% decline in turnover|
FY21 payroll tax deferral for payments until 7 October 2021 also available.
|Further information to be provided by Revenue NSW by the end of August. ||• Total grouped Australian wages for FY22 are $10m or less|
• At least 30% decline in turnover
|Revenue NSW has also indicated Support Payment Arrangements will also be available.
Further details to be provided by the end of August 2021.
|2021 Land Tax COVID-19 Relief||Key Dates||Conditions||Bentleys comment
|Landowners can receive a reduction of up to 100% of land tax payable for the FY21 land tax year.|
Amount of reduction equal to lesser of:
• Rent reduction to eligible tenants between 1 July 2021 and 31 December 2021
• 100% of land tax attributable to the land in which the tenant has been granted relief
|Rent reduction provided to tenant between 1 July 2021 and 31 December 2021.||• Commercial tenant where annual turnover up to $50m and is eligible to receive one of the COVID cash support schemes noted above|
• Residential tenant which has had at least a 25% reduction in household income as a result of COVID-19 and the landowner is not claiming the Residential Tenancy Support Payment
|Landowners can be eligible for both the earlier FY20 land tax COVID-19 relief and the FY21 land tax COVID-19 relief.
Landowners who claw back any rent reductions do not qualify for the land tax relief.
Businesses should now be focusing on their eligibility for the $15,000 COVID-19 Business Grant, Micro Business Support Grant and JobSaver and collating relevant supporting documentation for online applications through Service NSW. Businesses may also need support from their accountant to support their decline in turnover in certain scenarios.
Businesses should also ensure their employees who have had their work hours reduced check their eligibility for the COVID-19 Disaster payment which targets cash support for workers.
The NSW Government has also indicated that it is offering online telephone support for businesses through their Service NSW Business Concierge by contacting 13 77 88.
Details can also be found at nsw.gov.au – Grants, loans and financial assistance (external website).
Contact your local Bentleys advisor if you also need any assistance in applying for these support measures including verifying turnover levels and collating appropriate supporting documentation where required.
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.