Small Business Support Program 2022

Contents

• Small Business Support Program Summary
• Payment Eligibility Criteria
• What Level of Funding Can I Receive?
• Determining Your Weekly Payroll Amount
• Small Business Support Program Application Process

Small Business Support Program Summary

Eligible Businesses:

• will receive one payment, which covers the four-week period of February 2022.
• If employing, will receive the equivalent of 20 per cent of weekly payroll for work performed in New South Wales. The minimum payment will be $750 per week and the maximum payment will be $5,000 per week.
• If non-employing, will receive will receive $500 per week.

Applications opened on 16 February 2022 and close after 11:59pm on 31 March 2022. Applications are available via the Service NSW website.

Payment Eligibility Criteria

Businesses impacted by COVID-19 will be eligible if they:

1. 1. had an Australian Business Number (ABN) and were operating in New South Wales on 1 January 2021
   
   
2. 2. had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2021 or 30 June 2020 (must use the financial year for the Australian Tax Return most recently lodged with the ATO)
   
   
3. 3. experienced a decline in turnover of 40% or more due to the impacts of COVID-19 during the month of January 2022, compared to January 2021 or January 2020
   
   
4. 4. experienced a decline in turnover of 40% or more due to the impacts of COVID-19 from 1–14 February 2022 compared to the same fortnight in February in the comparison year used for criterion (3) above
   
   
5. 5. maintain their employee headcount from 30 January 2022 to 28 February 2022

'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 (Cth) or take leave without pay are considered employees for the purpose of the headcount. Businesses will remain eligible if their employee headcount declines for reasons outside the control of the employer, for example if employees voluntarily resign, die or retire.

Businesses must have experienced a decline in turnover due to COVID-19 which has, for example, impacted the business through reduced consumer demand, labour shortages and supply chain disruptions. Businesses that have experienced a decline in turnover for other reasons, such as seasonal variations, or the business closing for the holiday period or for renovations, are ineligible.

For non-employing businesses, the business receiving payments must be the primary income source (i.e. 50 per cent or more of total income) for the associated individual. Where an individual is associated with more than one non-employing business, only one of the businesses (with whom that individual is associated) may claim payment.

Certain entities, such as those primarily earning passive income (rents, interest, or dividends), government agencies, local governments, banks and universities are not eligible for the Small Business Support Program.

Where the annual turnover of non-employing businesses is aggregated with employing business(es) for the purpose of calculating aggregated annual turnover, the non-employing businesses are ineligible to apply.

Employees can receive Commonwealth Pandemic Leave Disaster Payments if their employer is receiving payment under the Small Business Support Program.

Non-employing businesses can also receive payment under the Small Business Support Program if individuals associated with and deriving income from the business receive a Commonwealth Pandemic Leave Disaster Payment for the same period.

What Level of Funding Can I Receive?

Eligible businesses will receive one payment covering the four-week period of February 2022. Businesses will not receive payment for January 2022.

Eligible employing businesses will receive the equivalent of 20 per cent of weekly payroll for work performed in New South Wales:

• the minimum payment will be $750 per week, and
• the maximum payment will be $5,000 per week.

Eligible non-employing businesses will receive $500 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) or Instalment Activity Statement (IAS) provided to the Australian Taxation Office (ATO) for a tax period that falls within the 2021–22 financial year. Item W1 in the BAS or IAS includes amounts of wages, salaries and other payments that are subject to PAYG withholding tax.

Businesses that only operate within New South Wales:

Should first identify the amount reported under item W1 in the relevant BAS or IAS and deduct any amounts withheld on behalf of contractors. That amount should be divided by the number of calendar days reported in the PAYG tax withheld section of the BAS or IAS period and multiplied by 7. This will give the weekly payroll amount.

Businesses that also operate in other states or territories:

Should 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 or IAS 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 calendar days reported in the PAYG tax withheld section of the BAS period or IAS and multiplied by 7. This will give the weekly payroll amount.

Businesses that do not submit a BAS, IAS 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 in the month of November or December 2021 (whichever is most reflective of business-as-usual). That amount should be divided by the number of calendar days in the month and multiplied by 7.

Service NSW’s website provides a template for calculating weekly payroll, which can found here.

Small Business Support Program Application Process

Applications open 16 February 2022 and close after 11:59pm on 31 March 2022. Applications will be available via Service NSW website.

As part of the application process, you’ll need to declare that you meet the eligibility criteria and provide various supporting documentation. This can include (but is not limited to) copies of BAS & IAS, copies of tax returns and an Accountants Letter (if your business industry is not listed on the industries directly impacted list).

BLG Business Advisers are Wollongong Accountants who service all over Australia and are always ready to help you out. If you think you may be eligible for the 2022 Small Business Support Program and need assistance with information or determining your eligibility, please don't hesitate to reach out to our team.

We wish you and your business every success!

*This information is relevant at the time of publishing and is subject to change*