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NSW Small Business Support Program

NSW Small Business Support Program

Simon Alford      Varun Kumar      

The NSW Government has extended the closing date for the 2022 Small Business Support Program.

Applications are now open for eligible businesses until 29 April 2022.

Eligible businesses can receive 20% of their weekly payroll paid as a lump sum for the month of February 2022. The minimum payment will be $750 per week and the maximum payment is set at $5,000 per week. Non-employing businesses will receive a lump sum of $2,000 (i.e., $500 per week).

Eligible businesses can use funds to cover business costs incurred due to the impacts of the Omicron strain of COVID-19 in NSW. These costs may include salaries and wages, utilities and rent, financial/ legal or other advice, marketing and communications, perishable goods and other business costs.

Eligibility requirements
To be eligible for the support payments, the business must:  

  • Have an active Australian Business Number (ABN).
  • Have been operating in NSW on 1 January 2021.
  • Have an aggregated turnover between $75,000 and $50 million for the for the year ended 30 June 2021 or 30 June 2020.
  • Have experienced a 40% decline in turnover as a result of the Omicron strain:
    • For the month of January 2022 compared to January 2021 or January 2020; and
    • Between 1 February 2022 – 14 February 2022 compared to the same fortnight in the comparison year used above.
  • Maintain their employee headcount from 30 January to 28 February 2022 if the business is an employing business; or
  • Non-employing business, must demonstrate that the business is the primary income source (50% or more of the total income) for the associated person if the business is a non-employing business. If you have more than one non-employing business, you can only claim payments for one business.
Some points to keep in mind:
  • If you report GST turnover on your BAS to the ATO on an accrual basis, you should use this method. If you report GST turnover on your BAS to the ATO on a cash basis, you should use this method.
  • If your business does not meet all the eligibility criteria above, you may be able to apply for the payment if you meet the alternative circumstances outlined in the guidelines which include:
    • new businesses not operating on 1 January 2021
    • businesses affected by drought, bushfires or other natural disasters
    • business acquisition, disposal or business restructure that has impacted the business’ turnover
    • a sole trader or small partnership impacted by sickness, injury or leave
    • businesses that are a group employing entity with the principal function of supplying employee labour to other members of a Group.
Entities earning passive income (rents, interest, or dividends) that is more than 50% of the business' income are ineligible for the program. For a full list of ineligible businesses, click here.

Evidence to support your application
Evidentiary requirements may differ depending on whether your business is on the
list of industries directly impacted by the Public Health Order. The following is a non-exhaustive list of what will be required at the time of submitting your application:
 
  Businesses on the list of industries directly impacted by the Public Health Order All other businesses
Declaration of headcount or primary source of Income Employing businesses must declare their employee headcount on 30 January 2022 and declare they will maintain their employee headcount over the period from 30 January to 28 February 2022.

Non-employing businesses must declare that the business is the primary income source for the individual associated with the business (i.e. 50% or more of total income).
Proof of turnover Most recently lodged Australian income tax return with tax file numbers redacted (for year ended 30 June 2020 or 30 June 2021 only).
Evidence of weekly payroll amount Generally, this will be
  • the most recent BAS or IAS within the 2021–22 financial year.
  • 2020-21 payroll tax reconciliation return.
  • a copy of the business payroll report filed using Single Touch Payroll (STP).
40% decline in turnover Declare that they experienced a decline in turnover of 40% or more due to COVID-19:
  • in January 2022 compared to January 2021 or January 2020.
  • from 1–14 February 2022 compared to the same fortnight in February in the comparison year used for January’s decline in turnover
Submit evidence that they experienced a decline in turnover of 40% or more due to COVID-19 in January 2022 compared to January 2021 or January 2020
 
Evidence can be in the form of:


 
  • the relevant business activity statements; or
  • a letter from a qualified accountant, registered tax agent or registered BAS agent.

     
Declare that they experienced a decline in turnover of 40% or more due to COVID-19 from 1–14 February 2022 compared to the same fortnight in February in the comparison year used for January’s decline in turnover.
Further evidence Identify how the Public Health Order has directly impacted the turnover of the business. Identify how COVID-19 has impacted the turnover of the business.

Businesses submitting an Income Tax Return for the year ended 30 June 2020 as proof of aggregated annual turnover may be required to provide further information to prove the business operated in the 12 months to 31 January 2022.

Applying for the support
Applications are open and will close at 11:59 pm on 29 April 2022. Applications can be made on the
Service NSW website. If you would like any assistance in relation to the application process, contact your Moore advisor.