What lockdown support is available to business?

The NSW and Federal Governments have announced a series of new measures to support business during extended lockdowns of four weeks or more:
•    Up to $15,000 through the expanded 2021 COVID-19 business grants program
•    Up to $10,000 cashflow support per week
•    Micro business grants
•    Payroll tax deferrals and a 25% payroll tax waiver
•    Rent protections and grants
•    Sector support for the arts and accommodation sector

2021 COVID-19 Business Grant of up to $15,000

The previously announced small business grants have been increased to up to $15,000 and expanded to eligible businesses (including not-for-profits and sole traders) with annual wages of up to $10 million. The value of the grant is determined by the impact of the lockdown on your turnover. Your business will need to prove a decline in turnover across a minimum 2 week period after the commencement of the major restrictions.

Turnover Decline
70% or more  $15,000
50% or more  $10,500
30% or more  $7,500

Eligibility
The full eligibility criteria, including how the decline of turnover test will be applied, have not been released as yet. In general, your business will need to have a NSW registered ABN or be able to demonstrate it is physically located and primarily operating in NSW with turnover of more than $75,000 per annum (for businesses under this threshold see $1,500 Micro Business Grants).

We will work with you once the details have been released to help you assess your eligibility and apply for the grant.

How to apply
Applications open on 19 July 2021 through ServiceNSW.

Cashflow Support of up to $10,000

A cashflow payment between a minimum of $1,500 and maximum of $10,000 per week based on 40% of the NSW payroll payments of your business (including not-for-profits).

Businesses without employees that meet the eligibility criteria such as sole traders, will be able to access a payment of $1,000 per week. The cashflow support will cease when lockdown restrictions are eased or when the Commonwealth hotspot declaration is removed.

Eligibility
• Annual turnover between $75,000 and $50 million
• Demonstrate a 30% decline in turnover
• Maintain your full time, part time and long term casual staffing level as of 13 July 2021
• Impacted by the current Greater Sydney COVID-19 restrictions

The full eligibility details, including how the decline in turnover test and how the headcount will work have not been released as yet.

How to apply
Applications for the cashflow support have not yet opened but you can register your interest from 14 July 2021 through ServiceNSW.

$1,500 Micro Business Grants

A new grant for micro businesses (including sole traders) providing $1,500 per fortnight while lockdown restrictions apply. The grants are available from week one of the lockdown until restrictions are eased.

Eligibility
• Annual turnover of more than $30,000 and less than $75,000
• Demonstrate a 30% decline in turnover
• Impacted by the current Greater Sydney COVID-19 restrictions

How to apply
Applications for the cashflow support have not yet opened but you can register your interest from 14 July 2021 through ServiceNSW.

Payroll tax relief

Payroll tax and lodgement deadline deferred
NSW payroll tax has been deferred for July and August 2021 until 7 October 2021 for all businesses.

The due date for the 2020-21 annual reconciliation has also been deferred until 7 October 2021.

Previous payroll tax deferrals and payment arrangements for 2020-21 due in July 2021 have not been deferred.

25% payroll tax waiver for businesses between $1.2m and $10m
Businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover, will be provided with a 25% payroll tax waiver in 2021-22. Further details of the reduction will be available by the end of August from RevenueNSW.

Rent protections and grants

Commercial and retail rent protections will be reinstituted.

Eviction moratorium
Legislative amendments will be introduced shortly providing a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19 and meets certain other criteria.

Commercial and retail landlords will need to attempt mediation before recovering a security bond, or locking-out or evicting a tenant impacted by Public Health Orders.

Land tax relief
Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants will be available for up to 100% of the 2021 land tax liability.

We’re available to assist you with the lockdown support for your business.
Many of the details required to apply for grants and funding, such as full eligibility and decline in turnover details, are not yet available. We will keep you up to date. In the interim, you can contact us on 1300 447 007.

The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.