- JobSaver Payment Eligibility Criteria
- What Level of Funding Can I Receive?
- What Can the Funding be Used For?
- JobSaver Payment Application Process
- Alternative Circumstances
JobSaver Payment Eligibility Criteria
JobSaver will provide cashflow support to impacted businesses to help them maintain their NSW employee headcount on 13 July. The program objective is to help businesses save jobs to support the economy after restrictions are lifted.
Businesses and not-for-profit organisations impacted by the Public Health Order will be eligible if:
- they have an Australian Business Number (ABN) and were operating in New South Wales on 1 June 2021
- they had a national aggregated annual turnover of between $75,000 and $250 million (inclusive) for the year ended 30 June 2020
- they experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June 2021 and due to end 28 August 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).
- for employing businesses, they maintain their employee headcount on 13 July 2021 while they continue to receive JobSaver payments (businesses that do not maintain the declared headcount must notify Service NSW)
- for non-employing businesses, the business receiving payments must be the primary income source for the associated person. Individuals with more than one non-employing business may only claim payments for one business.
Maintain their Employee Headcount means the employer will not take active steps to end the employment relationship with their employees. Employees who have been stood down under the Fair Work Act 2009 or take leave without pay are considered employees for the purpose of headcount. Businesses will remain eligible if their employee headcount declines for reasons outside the control of the employer, for example if employees voluntarily resign.
Certain entities, such as those primarily earning passive income (rents, interest, or dividends), government agencies, local governments, banks, and universities are not eligible for JobSaver.
Employees can receive Commonwealth COVID-19 Disaster Payments if their employer is receiving JobSaver.
Non-employing businesses are not eligible for the JobSaver payment if individuals associated with and deriving income from the business have received a Commonwealth COVID-19 Disaster Payment since 18 July 2021.
What Level of Funding Can I Receive?
Eligible businesses and not-for-profit organisations will receive fortnightly payments backdated to cover costs incurred from week-4 of the Greater Sydney lockdown (from 18 July 2021 onwards).
Eligible businesses and not-for-profit organisations with employees will receive the equivalent to 40% of Weekly Payroll for work performed in New South Wales.
- Eligible Employing businesses: minimum payment will be $1,500 per week and the maximum payment will be $100,000 per week.
For example, if your Weekly Payroll cost is $10,000, your payment amount will be $4,000. If you Weekly Payroll cost is $2,000 you will receive $1,500 as 40% of $2,000 is $800, where $1,500 is the greater amount of the two. See below on how to determine your Weekly Payroll Amount.
- Eligible Non-Employing businesses: will receive $1,000 per week.
Determining Your Weekly Payroll Amount
Weekly Payroll should generally be determined by referring to the calculations underlying the most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) prior to 26 June 2021 for the 2020-21 financial year. Item W1 in the BAS includes amounts of wages, salaries and other payments that are subject to PAYG withholding tax (as defined by the ATO).
Payments subject to withholding tax in W1 includes allowances, leave loading, director fees and termination payments but does not include payments such as superannuation contributions, amount subject to salary sacrifice, interest or dividends. For the purposes of calculating Weekly Payroll, businesses should deduct amounts from W1 that have been withheld on behalf of contractors under voluntary agreements.
- Businesses that only operate within New South Wales
First identify the amount reported under item W1 in the relevant BAS and deduct any amounts withheld on behalf of contractors. That amount should be divided by the number of days in the BAS period and multiplied by 7. This will give the Weekly Payroll amount.
- Businesses that also operate in other states or territories
Use the same approach as reporting to the ATO on W1 to calculate the amount of wages, salaries and other amounts paid to employees who usually worked, or were based, in New South Wales during the relevant BAS period. Amounts voluntarily withheld on behalf of contractors in New South Wales should then be deducted. That amount should be divided by the number of days in the BAS period and multiplied by 7. This will give the Weekly Payroll amount.
- Businesses that do not submit a BAS or have no W1 amount
Should use the ATO definition of W1 to calculate the total wages, salaries and other amounts, excluding amounts withheld on behalf of contractors, for employees who usually worked, or were based, in New South Wales during the month of April or May 2021. That amount should be divided by the number of days in the month and multiplied by 7. This will give the Weekly Payroll amount.
What Can the Funding be Used For?
The JobSaver payment will help eligible businesses to cover their business costs incurred from 18 July 2021. These costs may include, but are not limited to, the following expenses:
- salaries and wages
- utilities and rent
- financial, legal or other advice
- marketing and communications
- perishable goods
- other business costs.
While JobSaver payments can be used to cover general business costs, the primary objective of this payment is to help businesses to survive, maintain relationships with their employees and be in a position to trade when restrictions are lifted.
JobSaver Payment Application Process
Applications will open on 26 July 2021 and close at 11:59pm on 18 October 2021. Applications are made via Service NSW Website.
Businesses that have applied and are eligible for the 2021 COVID-19 business grant will generally be automatically eligible for JobSaver but must provide further information on employee headcount and payroll. These businesses may be contacted by Service NSW if further information is required.
Once deemed eligible, businesses will receive automatic fortnightly payments. Businesses will not need to re-apply but must notify Service NSW if they are not maintaining the number of employees they had on 13 July 2021. Reductions in employee headcount resulting from circumstances outside the control of the employer (such as voluntary resignations, death of an employee) will not be taken as a reduction in employee headcount on 13 July.
Payments will be made in arrears with the first payment backdated to 18 July.
The information and declarations that you need to provide as a part of your application can differ depending on whether the industry your business is on the highly impacted industries list.
Information to be Provided in your Application
- declare you have experienced a decline in turnover of 30 per cent or more due to the Public Health Order over a minimum two-week period within the Greater Sydney lockdown (commenced 26 June and due to end 30 July 2021), compared to the same period in 2019
- declare your employee headcount on 13 July 2021
- employing businesses will need to declare they will maintain their employee headcount on 13 July 2021 for the period for which the business is receiving payments under the JobSaver scheme and notify Service NSW if employee headcount declines over the period of the payment due to any actions of the business
- non-employing businesses will need to declare the business is their primary income source.
- submit an Australian Income Tax Return (or Notice of Assessment) or other documentation to demonstrate their business had a national aggregated annual turnover of between $75,000 and $250 million (inclusive) for the year ended 30 June 2020
- provide details of their qualified accountant, registered tax agent or registered BAS agent for compliance checking
- provide evidence of weekly payroll:
- for businesses that submit a BAS with a W1 amount (wages and salaries) recorded: their most recent BAS that was submitted to the ATO prior to 26 June 2021 within the 2020-21 financial year
- for businesses that submit a BAS without a W1 amount (wages and salaries) recorded: their 2019-20 NSW payroll tax reconciliation return
- for businesses that do not submit a BAS: Contact Service NSW to discuss alternate evidence of wages and salaries
- business bank account details for payment
If your business is NOT listed on the highly impacted industries list, you will need to provide the above mentioned information and the below:
- submit evidence through a letter from a qualified accountant, registered tax agent or registered BAS agent that they experienced a decline in turnover of 30 per cent or more due to the Public Health Order over a minimum two-week period within the Greater Sydney lockdown (commenced 26 June and due to end 30 July 2021), compared to the same period in 2019
- alternatively, if businesses have previously submitted a letter from a qualified accountant, registered tax agent or registered BAS agent to Service NSW to verify decline in turnover for other COVID-19 business support grants, they can resubmit this letter as evidence of a decline in turnover up to the percentage previously attested.
There are several alternative circumstances that result in a business not meeting the eligibility criteria and supporting evidence. Service NSW currently outlines the below information on their website and advises businesses to contact Service NSW to discuss alternative circumstances.
Businesses operating in New South Wales with their ABN registered outside New South Wales will be able to apply if they can provide evidence their business was operating in New South Wales on 1 June 2021. Evidence to demonstrate this includes commercial rates notices or lease agreements. Where a rates notice or lease agreement is not available, Service NSW may accept a combination of the following:
- utility bills
- insurance papers
- supply invoices
- registration papers
- contractor licences
Other alternative circumstances can include:
- businesses not operating for the full year to 30 June 2020 (e.g. new businesses)
- businesses affected by drought, bushfires or other natural disasters
- business acquisition, disposal, or business restructure that has impacted the business' turnover
- a sole trader or small partnership impacted by sickness, injury or leave
Businesses in these circumstances should contact Service NSW to determine if an alternate comparison period, or alternative supporting evidence, can be applied.
Where a business operates through a trust structure, the applicant will be required to provide additional information to demonstrate a national aggregated annual turnover of between $75,000 and $50 million (inclusive) is derived through the trust. The entity operating the business is eligible for JobSaver, no other entities that are receiving passive income from the business.
The above information is based on the information available on Service NSW website as at 25 July 2021. We will continue to update the above for any changes, however do recommend you check your eligibility criteria against the guidelines provided to ensure your business is eligible at the time of your application.
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!