COVID-19 Support Grant
A key component of the stimulus package is a single payment grant for eligible small businesses.
The payment amount that a small business (including sole traders) can be eligible for depends on their decline in turnover. In his media release, the Treasurer outlined the following relevant payment amounts for the corresponding decline in turnover:
- A turnover decline of 70%: eligible business can apply for a $10,000 payment
- A turnover decline of 50%: eligible business can apply for a $7,000 payment
- A turnover decline of 30%: eligible business can apply for a $5,000 payment
The Treasurer in his media release noted that businesses would need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on 26 June 2021. It is expected further details for the decline in turnover are to be provided in the coming days on the Service NSW website.
The COVID-19 Support Grant will be divided in to the following two streams:
1. Small Business COVID-19 Support Grant
Small businesses (including sole traders) who have met one of the decline in turnover requirements can apply for a grant if they meet the below eligibility criteria:
- The small business has annual turnover of more than $75,000 per annum
- The small business has less than 20 full time equivalent employees
- The small business has annual wages below the NSW Government 2020-21 payroll tax threshold of $1.2M as at 1 July 2020
- The small business has an Australian Business Number (ABN) registered in NSW or be able to demonstrate they are physically located and operating in NSW.
2. Hospitality and Tourism COVID-19 Support Grant
Small businesses (including sole traders) who have met one of the decline in turnover requirements and are in the tourism or hospitality industry can apply for a grant if they meet the following eligibility criteria:
- The small business has a turnover of more than $75,000
- The small business has an annual Australian wages bill of below $10 million, as at 1 July 2020
Eligible small businesses will be able to apply from 19 July 2021 via Service NSW. A letter from your accountant confirming your decline in turnover will need to be provided when applying for the payment.
Full eligibility criteria for the COVID-19 Support Grant is expected to be available in the coming days on the Service NSW website.
Payroll Tax Optional Deferrals
NSW Businesses can choose to defer the payment of their NSW Annual Payroll Tax Liabilities from July 2021 to August 2021. This measure is optional, and businesses can make payments earlier if they would prefer.
Gaming Machine Tax Deferrals
NSW Hotel Businesses are able to defer their gaming machine tax liabilities from July 2021 to August 2021.
In addition to the above measures, the Treasurer announced that the NSW Government has extended the Dine & Discover vouchers from July 2021 to 31 August 2021. It was also announced that the vouchers can be used for takeaway and delivery (direct delivery from restaurants or cafes i.e. cannot be used for third party delivery platforms). Other measures include more than $11 million for increased support for people at risk of homelessness plus assistance to vulnerable temporary visa holders, asylum seekers and refugees.
We expect further details to be provided for the COVID-19 Support Grant in the coming days. We will continue to update you on the measures announced as more information becomes available.
We wish you and your business every success!