Measuring your turnover decline - What are your options?

One of the key requirements for businesses to obtain financial support during the current lockdown in NSW is the ability to demonstrate a decline in turnover of at least 30% during a specified lockdown period.

The decline in turnover test, amongst other requirements, is required to obtain the following lockdown support measures:

  • COVID-19 Business Grant                (Applications closing on 13 September 2021)
  • COVID-19 Micro Business Grant      (Applications closing on 18 October 2021)
  • JobSaver Grant                                 (Applications closing on 18 October 2021)

There has been a fair degree of uncertainty as to the measurement of the required turnover decline as businesses and their advisors struggle to keep up to date with ongoing updates provided by the Government on how the turnover decline can be measured under the various lockdown support measures.

In terms of the COVID-19 Business Grant and the Micro Business Grant, one recent important development is the option now to measure turnover decline in the immediate 2 week period before the Greater Sydney lockdown began, being the period 12 June 2021 to 25 June 2021 and the extension of the JobSaver lockdown measurement period up to 28 August 2021.

The current state of play in terms of measuring decline in turnover can be summarised as follows:

Lockdown Measurement PeriodComparison PeriodBentleys comment
COVID-19 Business Grant
Turnover measured over a minimum 2-week period from 26 June 2021 to 17 July 2021

{For certain southern NSW border businesses near the Victorian border (e.g. Albury Bega Valley and Murrumbidgee), the measurement period is 27 May 2021 to 17 July 2021}
Either:
• Same period in 2019; or
• Same period in 2020; or
• 2 week period immediately before the Greater Sydney lockdown, i.e. 12 June 2021 to 25 June 2021
Aggregated annual turnover must be between $75,000 and $250 million for the year ended 30 June 2020. Also note JobKeeper payments are not counted as part of aggregated turnover.

For the purposes of measuring turnover decline the concept of “GST turnover” is adopted.

Decline in turnover must be due to lockdown.
COVID-19 Micro Business Grant
Turnover measured over a minimum 2-week period from 26 June 2021 to lockdown ends (currently up to 28 August 2021) Either:
• Same period in 2019;
or
• Same period in 2020 or
• 2 week period immediately before the Greater Sydney lockdown, i.e. 12 June 2021 to 25 June 2021
Have aggregated annual turnover between $30,000 and $75,000 for the year ended 30 June 2020. Also note JobKeeper payments are not counted as part of aggregated turnover.

For the purposes of measuring turnover decline the concept of “GST turnover” is adopted.

Decline in turnover must be due to lockdown.
JobSaver Grant
Turnover measured over a minimum 2-week period from 26 June 2021 to 28 August 2021 Either:
• Same period in 2019; or
• Same period in 2020; or
• 2 week period immediately before the Greater Sydney lockdown, i.e. 12 June 2021 to 25 June 2021
Note the lockdown measurement period under JobSaver and the Micro Business Grant is extended to 28 August 2021 compared to the one off COVID-19 Business Grant; otherwise measurement approach in determining turnover same as the grants noted above.

Further information

Speak to your local Bentleys advisor if you need assistance in calculating your decline in turnover for the purpose of the lockdown support grants.

Our updated tables summarising the relevant measures for businesses can be found at: NSW lockdown support update key dates for-businesses 

Further guidance on the business grants can be found at Service NSW via this link: COVID-19 business grants


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.