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:
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.
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.
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.
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:
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.
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.
If your business is NOT listed on the highly impacted industries list, you will need to provide the above mentioned information and the below:
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:
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 are Wollongong Accountants and are here to help so please don’t hesitate to reach out to us.
We wish you and your business every success!