The Government has recently announced the availability of certain grants to provide temporary financial assistance to NSW businesses during the recent lockdown.

The NSW Small business Support Grant

If you’re a business, sole trader or not-for-profit organisation impacted by the current Greater Sydney COVID-19 restrictions, you may be able to apply for up to $10,000 in grants from late July 2021. Grants can be used for business expenses such as rent, utilities and wages, for which no other government support is available.

Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions –

• $10,000 for a 70 per cent decline;
• $7,000 for a 50 per cent decline;
• $5,000 for a 30 per cent decline

The grants will be divided into two streams:

1. Small Business COVID-19 Support Grant: Available to businesses and sole traders with:

• A turnover of more than $75,000 per annum but below the NSW Government 2020 21 payroll tax threshold of $1,200,000 as at 1 July 2020 and
• Fewer than 20 full time equivalent employees and
• An Australian Business Number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales.

2. Hospitality and Tourism COVID-19 Support Grant: Available to tourism or hospitality businesses that have:

• Turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020
• An Australian Business Number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales

Further eligibility details are expected to become available on the Service NSW website over the coming days. Government grants or stimulus options for business may have tax implications. In particular, should you require assistance with the decline in turnover requirement, please feel free to reach out to your contact at ADX Accountant.

COVID-19 Disaster Payments (currently available in NSW and VIC)

A lump sum payment is currently available to assist workers unable to earn income due to a COVID-19 lockdown, hotspot or period of restricted movement which lasts for more than 7 days.

To be eligible, all of the following must apply:

• Can’t attend work and lost income on or after day 8 of a COVID-19 restriction imposed
• Don’t have access to appropriate paid leave entitlements through your employer
• Not receiving any other forms of income support payments, such as Pandemic Leave Disaster Payment or state small business payment

The amounts received are:

• If you lost less than 20 hours work, $325 for each recognised event
• If you lost 20 hours or more of work, $500 for each recognised event

Further information is available at the following link: https://www.servicesaustralia.gov.au/individuals/services/centrelink/covid-19-disaster-payment/who-can-get-it

Payroll tax deferral (NSW)

To assist businesses with the impact of COVID-19, the due date for lodgement and payment of the 2021 annual reconciliation has been extended to 30 August 2021

NSW Fees and charges rebate

If you are a sole trader, the owner of a small business or a not-for-profit organisation in NSW, you may be eligible for a small business fees and charges rebate of $1,500. To be eligible for this rebate, small businesses (including non-employing sole traders) and not-for-profit organisations must:

• have total Australian wages below the NSW Government 2020-2021 payroll tax threshold of $1.2 million
• have an Australian Business Number registered in NSW and/or have business premises physically located and operating in NSW

Funds can be used to offset the costs of eligible NSW and local government fees and charges due and paid from 1 March 2021. These include, but are not limited to:

• council rates
• food authority licences
• liquor licences
• tradesperson licences

Excluded fees and charges include fines and penalties, NSW or Commonwealth taxes, rent on government premises and fees and charges that are designed to discourage or induce behaviour changes. Please refer to the following link for further details: https://www.service.nsw.gov.au/small-business-fees-and-charges-rebate#introduction

Australian Banking Association – support measures

The Australian Banking Association recently announced support measures for customers that continue to be affected by the COVID-19 lockdowns. These include:

Business banking repayment deferrals

• Up to 3-month repayment deferrals, with loan terms extended accordingly
• Offered to all small business customers (business lending less than $3m and a turnover of less than $5m), which includes up to 98% of small businesses
• Only for loans in good standing (i.e. repayments up to date or engaged in a payment program with their bank)

Everyday banking support

• Refunds of merchant terminal fees for up to 3 months
• Waiving of fees and notice periods on Cash Deposit and Farm Management Deposit accounts for up to 3 months

Home loan support

• Range of support measures, including deferrals on a month by month basis
• Available to both individual and business customers

For further details please refer to the following link and contact your financial institution for details https://www.ausbanking.org.au/australian-banks-offer-covid-19-customer-relief/

If you need our assistance please contact us.