New support measures announced for SMEs in NSW due to latest lockdown

The new package includes:

• Grants of between $5000 and $10,000 for small businesses, depending on annual turnover
• Payroll tax deferrals for all employers
• Extension of the Dine & Discover programme through August 2021
• An optional deferral of payroll tax payments due in July 2021 and the deferral of hotel June quarter gaming machine tax

NSW Premier Gladys Berejiklian, said that the small company support grants would assist businesses by reducing cash flow restrictions during restricted trading. The stimulus support can help businesses cover expenses such as rent, utilities and wages.

The new grants will be available across the state from July 19 and businesses will be able to apply for the grants through Service NSW from later in July. Businesses will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on June 26.

Support Grants

The state shall provide three different grant amounts for small businesses depending on the decline in turnover experienced during the lockdown:

$10,000 for businesses who experience a 70% decline in revenue
$7000 for businesses who experience a 50% decline in revenue
$5000 for businesses who experience a 30% decline in revenue

In order to receive funds, businesses must meet the eligibility requirements of the following two streams:

Small Business COVID-19 Support Grant:

Businesses and sole traders with a turnover of more than $75,000 per year but less than the NSW Government’s 2020-21 payroll tax threshold of $1,200,000 as of July 1 2020, are eligible for such assistance.

These businesses must have fewer than 20 full-time equivalent employees, and an Australian Business Number registered in NSW or be able to demonstrate that they are physically located and primarily operating in New South Wales.

Hospitality and Tourism COVID-19 Support Grant: 

Tourism or hospitality businesses that have an annual turnover of more than $75,000 and an annual Australian wages bill of below $10 million as of July 1, 2020, are eligible for this grant.

This business must also have an Australian Business Number registered in NSW or be able to demonstrate they are physically located and primarily operating in New South Wales.

TaxAssist Accountants are here to help you with all your tax and accounting needs. To book an appointment, please give us a call on 1300 513332 or use our online enquiry form.

We can offer initial consultations, advice and support over the phone if you have any concerns about face-to-face meetings.

Date published 30 Jun 2021 | Last updated 30 Jun 2021