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2021 COVID-19 Business Grant - One-off Payment

Written by Sarah Pogson . July 18, 2021
12 min read

Service NSW has provided further details on the eligibility criteria and the application process for the one-off 2021 COVID-19 Business Grant. Below we provide you with an extensive overview of the grant to help you determine if your business is eligible.

Contents

Eligibility Criteria

Businesses and not-for profit organisations that have been impacted by the Public Health Orders (PHO) will be eligible if they meet all of the below criteria:

  • have an Australian Business Number (ABN) and were operating in New South Wales (NSW) as at 1 June 2021

  • employing businesses have total annual Australian wages of $10 million or less as at 1 July 2020 (those business already grouped by Revenue NSW should apply those rules for determining Australian wages. Businesses not already grouped should apply the ownership grouping provision set out in the NSW Payroll Tax Act).

  • had an aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020.

  • have business costs for which there is no other government support available (for example the $1500 small business fees and charges rebate).

  • employing businesses maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme.

  • they experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to:
    • the same period in 2019, or
    • the same period in 2020, or
    • the 2-week period immediately before lockdown commenced (11 to 25 June 2021). 

Maintain their Employee Headcount means maintenance of the employer-employee relationship consistent with employment law. Employers will, however, remain eligible if employees voluntarily resign.

Non-employing businesses are not eligible to apply if persons associated with the business, and who derive income from it, have applied for, or are receiving, the Commonwealth COVID-19 Disaster Payment.

If your business is on the Victorian border and has been impacted by the NSW stay at home orders that commenced on 27 May 2021, those Southern Border businesses decline in turnover period is a minimum 2-week period from 27 May 2021 to 17 July 2021 compared to the same period in May and/or June and/or July 2019.

Southern Border businesses include those physically located and primarily operating in one of the following local government areas: Albury, Balranald, Berrigan, Bega Valley, Edward River, Federation, Greater Hume Shire, Hay, Murray River, Murrumbidgee, Snowy Monaro, Snowy Valleys and Wentworth.

The 2021 COVID-19 Business Grant is available for a single ABN. Multiple businesses trading under a one ABN are only eligible for one grant.

What Level of Funding Can I Receive?

If you have met all of the above listed eligibility criteria, the funding amount that you are eligible for depends on the decline in turnover you have experienced due to the Public Health Order (PHO). The funding has been split in to three tiers:

Tier

Decline in turnover % due to PHO

Grant Amount

1

30% or more

$7,500

2

50% or more

$10,500

3

70% or more

$15,000

 

What Can the Funding be Used For?

The funding is to provide help for business costs incurred from 1 June 2021 to 18 July 2021, which include, but are not limited to, the following expenses:

  • utilities, wages and rent
  • financial, legal or other advice to support business continuity planning
  • marketing and communications activities to develop the business
  • the cost of perishable goods that can no longer be used
  • other activities to support the operation of the business

The Grant must only be used for expenses for which no other government support is available. For example, the Grant cannot be used to pay government fees and charges that would be covered by the $1500 small business fees and charges rebate.

Application Process

Applications for the 2021 COVID-19 Business Grant can be made via the Service NSW website. Applications will be open until 1 October 2021 (previously 13 September 2021).

As a part of the application process, you will need to provide certain details, documents and declarations. The level of information that needs to be provided varies on the grant amount you are applying for and whether your business is on the ‘highly impacted industries list’ which we have provided in the named link.

Below we have listed the expected information and declarations that you will need to provide as a part of your application process.

Information needed for ALL applications

  • a service NSW Account
  • proof of identity – two identity documents required (e.g. drivers licence, Medicare card, passport, birth certificate etc)
  • your business ABN/ACN number
  • your business banking details for payment (double check these are correct)
  • Australian income tax return or Notice of Assessment for the 2020FY to demonstrate your business had an aggregated turnover of between $75,000 and $50,000 inclusive.
  • details of your qualified accountant, registered tax agent or registered BAS agent

Declarations required

Every Applicant – ALL TIERS

  • declare that you have experienced the required decline in turnover due to the PHO for the relevant 2-week period in 2021 comparison to the same period in 2019. Note, the decline in turnover is different for each grant tier

  • declare that you have eligible expenses for which no other government support is available. Invoices are not required to be provided, but should be kept handy for any potential audit/review in future

  • declare your employee headcount at 13 July 2021 (this means the total number of persons employed in New South Wales and who are permanent (full-or part time) or casual staff who have been employed for more than 12 months by the business or not-for-profit organisation as at 13 July 2021).

  • declare that you will maintain your employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme

  • provide details of your qualified accountant, registered tax agent or registered BAS agent for possible compliance checking

  • lodge other supporting documents as required to demonstrate they meet the eligibility criteria.

Applicants OUTSIDE the ‘highly impacted industries list’ – ALL TIERS

If your business is outside the ‘highly impacted industries list’, you are required to provide all information listed above (Every Applicant – ALL TIERS) AND the following:

  • evidence to show total annual Australian wages, and decline in turnover. This will be in the form of a letter from one of the following:
    - qualified accountant as defined in the Corporations Act 2001
    - registered tax agent as defined under the Tax Agent Services Act 2009
    - registered BAS agent as defined under the Tax Services Act 2009

Applicants ON ‘highly impacted industries list’ – TIER 3

If you are applying for the $15,000 grant and your business industry is listed on the ‘highly impacted industries list’, the payment of your grant will be split in to two phases.

You will receive $10,500 if you declare all of the information listed above under “Every Applicant – ALL TIERS”.

To receive the remaining $4,500, you must submit evidence that you have experienced a decline in turnover of 70% or more over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019. For Southern Border businesses, the turnover period is from 27 May 2021 to 17 July 2021 compared to the same period in May and/or June and/or July 2019.

The evidence that you will need to submit will need to be in the form of a letter from one of the following Independent Practitioners:

  • qualified accountant as defined in the Corporations Act 2001
  • registered tax agent as defined under the Tax Agent Services Act 2009; or
  • registered BAS agent as defined under the Tax Services Act 2009.

Alternative Circumstances

It is expected that there are going to be alternative circumstances to businesses across NSW who wish to apply for the 2021 COVID-19 Business Grant. At this stage, as listed on the Service NSW website, alternative circumstances can include:

  • businesses operating in NSW as at 1 June 2021 who had their ABN registered elsewhere: Service NSW requires evidence to demonstrate this is the case, for example commercial rates notices or lease agreements, or a combination of utility bills, insurance papers, supply invoices, registration papers or contractor licenses.

  • businesses that cannot demonstrate the minimum $75,000 aggregated turnover or the minimum decline in turnover may still be eligible to apply if they:
    - were not operating for the full year to 30 June 2020 (e.g. they are a new business) but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021, and they can demonstrate they have been significantly impacted by the Public Health Orders, or
    - their turnover in June/July 2019 was not representative of their usual or average turnover (e.g. due to drought or bushfires) which is usually $75,000 per annum or more, and they can demonstrate they have been significantly impacted by the Public Health Orders.
  • where a business does not submit a BAS to the Australian Taxation Office
  • Where a business operates through a trust structure, the applicant will be required to provide additional information to demonstrate an aggregated annual turnover of $75,000 or more is derived through the trust, as opposed to a business linked to a trust.

For all of the above listed alternative circumstances, and other that you may experience, you are required to contact Service NSW to discuss. Please note that applications for this COVID-19 Business Grant will close on 1 October 2021.

For details on all the business support packages announced by both the Federal & State Governments read our article here.

If you require assistance in determining your eligibility, assistance with the application process or an Accountant’s Letter, our team at BLG Business Advisers is here to help so please don’t hesitate to reach out to us.

We wish you and your business every success!

*This information is relevant at the time of publishing and is subject to change*
Written by Sarah Pogson . July 18, 2021
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