COVID-19 New South Wales grants available

The NSW Government has announced several grants to help businesses, sole traders and not-for-profits impacted by the COVID-19 restrictions.

2021 COVID-19 Business Grant

Eligible businesses (including non-employing businesses such as non-employing sole traders) and not-for-profits can apply for a one-off grant if the restrictions affect their turnover. The grants are assessed based on the impact on turnover:

• $15,000 for a decline in turnover of 70 per cent or more 
• $10,500 for a decline in turnover of between 50 and 69 per cent
• $7500 for a decline in turnover of between 30 and 49 per cent.
   

To be eligible, the entity must have experienced a revenue decline of 30 per cent or more, have an annual turnover of above $75,000 and their annual payroll must be under $10 million.

The turnover period is calculated over at least two weeks from 26 June to 17July 2021 and compared to the same period in 2019, 2020 or 11 June to 25 June 2021 (or 12 May to 26 May 2021 for southern border business).

An accountant’s letter may be required as part of the application, as evidence of the decline in turnover. 

JobSaver

Under the JobSaver scheme, eligible employing entities will receive up to 40 per cent of their NSW weekly payroll. The minimum weekly payment will be $1500 and the maximum payment will be $100,000, paid fortnightly. For non-employing businesses the weekly payment will be $1000, paid fortnightly.

Entities will be eligible if:

• their turnover is 30 per cent lower than the same period in 2019, 2020 or 11 June to 25 June 2021
• their aggregated annual turnover is between $75,000 and $250 million
• they maintain their employee headcount as of 13 July 2021 for the period they receive the payment.
   

The decline in turnover is calculated over a minimum two-week period from 26 June 2021 to the end of lockdown compared to the same period in 2019, 2020 or 11 June to 25 June 2021.

An accountant’s letter may be required as part of the application as evidence of the decline in turnover.

Non-employing businesses are not eligible for JobSaver payment if individuals associated with and deriving income from the business have received a Commonwealth COVID-19 Disaster Payment since 18 July 2021.

The first fortnightly payment will be backdated to 18 July 2021.

Applications close 18 October 2021.

Payroll tax concessions

Entities paying Australian wages of between $1.2 million and $10 million and have experienced a 30 per cent decline in turnover will receive a 25 per cent payroll tax deduction.

Any business paying payroll tax can opt to defer payroll tax payments on their 2020-21 annual reconciliation return and wages paid in July and August until 7 October 2021.

Grants for micro business

Businesses with an aggregated annual turnover of between $30,000 and $75,000 that experience a decline in turnover of at least 30 per cent will be eligible for a $1500 payment each fortnight during the restrictions.

The decline in turnover is calculated over a minimum two-week period from 26 June 2021 until the end of lockdown compared to the same period in 2019, 2020 or 11 June to 25 June 2021.

An accountant’s letter is one form of evidence an applicant may submit showing their decline in turnover.

Non-employing businesses are not eligible to apply for this grant if anyone associated with the business or who derives income from it (except an employee) receives the Commonwealth COVID-19 disaster payment.

The first payment will be backdated to 26 June 2021 and, where possible, will be made within 10 business days of an approved application.

Applications close 18 October 2021.

Commercial tenancy changes

For the period 13 July to 20 August 2021, commercial landlords will be prevented from taking the following actions against a tenant that is eligible for the COVID-19 Support Grant, the COVID-19 NSW Business Grant and/or the Job Saver Grant:

• evicting the tenant
• exercising a right of re-entry to the premises
• recovering the premises
• recovering a security bond
• terminating the lease.

The landlord can however act against a tenant for failure to pay rent, but only if they have first attempted mediation.

Land tax relief has been announced for the period from 1 July 2021 to 31 December 2021. The land tax reduction will be the lesser of:

• the amount of rent reduction provided to an eligible tenant for any period between 1 July 2021 and 31 December 2021, or
• 100 per cent of the 2021 land tax attributable to the parcel of land leased to that tenant.

Other Support

• Deferral of gaming tax assessments for clubs are in place until 21 December 2021 and for hotels until 21 January 2022
• Capped grants of up to $1500 are available for residential landlords who are not liable to pay land tax who reduce rent for tenants
• Support for performing arts and live music organisations.

 

Contact your local TaxAssist Accountant for assistance in claiming what you are entitled to.

Date published 10 Aug 2021