New payments and reliefs available due to NSW lockdown

With the Greater Sydney area going into lockdown until at least 30^th July, the Morrison Government has announced increased weekly payments for households effected and boosted business cash flow, to help through the extended lockdown.

A summary for these payments is as follows:

Covid 19 Disaster Payments

As we are experiencing an extended lockdown. This would include:

• From week four of a lockdown because of a Commonwealth declared hotspot,
  • the COVID-19 Disaster Payment will increase from $500 to $600 each week if a person has lost 20 hours or more of work a week
  • or $325 to $375 each week if a person has lost between 8 and 20 hours of work.
• The COVID-19 Disaster Payment would include those who are still working, provided they have lost more than 8 hours or a full day of work.

There is an Eligibility Criteria you need to follow that you can find by clicking this link.

Small and Medium Business Support Payments

These payments are available to employing as well as non-employing entities including non-for-profit entities with an annual turnover of between $75,000 and $50 million.

It is a requirement that to receive this support the entities maintain the same staffing level as of 13^th July 2021 including full time, part time and long-term casual staff.

The support payment would be 40% of their NSW payroll payment with a minimum of $1500 and maximum of $15,000 per week. Non-employing businesses such as sole traders will receive a set payment of $1,000 if they meet the eligibility requirement.

2021 COVID-19 Business Grant

A business, sole trader or not-for-profit organisation impacted by the current Greater Sydney COVID-19 restrictions; they may be able to apply for a grant from the Government of NSW of up to $15,000 from 19 July 2021.

Three different grant amounts will be available depending on the decline in turnover experienced during the restrictions:

• $7,500 for a decline of 30% or more
• $10,500 for a decline of 50% or more
• $15,000 for a decline of 70% or more.

The grant can be used for business expenses such as rent, utilities and wages, for which no other Government support is available.

Micro Business Grant

A micro business with less an annual turnover of more than $30,000 and less than $75,000 that has been impacted by the Greater Sydney Covid 19 restrictions may be able to apply for a grant from NSW Government through Services NSW from late July 2021.  The grant would be $1,500 per fortnight of restriction.

You can register your business here for these grants.

Renters and Landlords

The NSW Government has introduced a moratorium on forced evictions until 11^th September 2021.

Residential landlords who reduce rent to tenants who have been impacted by Covid 19 restrictions may be eligible for a rental subsidy of $1,500 or or land tax reductions depending on their circumstances.

Commonwealth Business Tax Relief

The Commonwealth will also provide additional support through the tax system, by:

• Making NSW small business grants, including the new small business payments, tax exempt.
• Providing administrative relief to NSW taxpayers facing hardship, including reduced payment plans, no interest charged on late payments and varying instalments on request.

Please contact your local TaxAssist Accountant if you need assistance with any of the above.
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Date published 16 Jul 2021 | Last updated 16 Jul 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.