In recent days many communities have been asked to adhere to government mandates of compulsory masks and lockdowns. Both the NSW and Federal governments have announced support packages to businesses and individuals affected by the COVID-19 pandemic, and we have included below an overview of the financial support available.
NSW COVID-19 SUPPORT PACKAGE
On 29 June the NSW Treasurer, the Honourable Dominic Perrottet announced a new grants package to help small business across NSW impacted by the current COVID-19 restrictions.
Full eligibility criteria are due to be released in the coming days, however the following is a summary of the grants from the NSW Government website.
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 and $5,000 for a 30 per cent decline. This can be used for business expenses such as rent, utilities and wages, for which no other government support is available.
Businesses will be able to apply for the grants through Service NSW from later in July and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on 26 June 2021.
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 $1.2 million as at 1 July 2020.
Full criteria will be available in coming days on the Service NSW website, though early indications suggest eligibility will include:
- businesses must have fewer than 20 full time equivalent employees
- have 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 a turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020.
These business must have 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.
We will need to wait for further details to be released in order to determine some aspects of the eligibility criteria including the mechanics of the turnover test.
Other key elements of the package announced today include:
- Dine & Discover vouchers will be able to be used for takeaway from eligible and registered Dine businesses during the restriction period, but food must be delivered direct to the home by the restaurant or café and not picked up. Dine & Discover vouchers cannot be redeemed for takeaway using third party delivery platforms.
- A further one-month extension of Dine & Discover vouchers until 31 August 2021 to allow people more time to use them.
- An optional deferral of payroll tax payments due in July 2021 and the deferral of hotel June quarter gaming machine tax, with the Chief Commissioner of State Revenue able to provide for appropriate repayment arrangements on a case by case basis.
FEDERAL GOVERNMENT'S COVID-19 DISASTER PAYMENT
Individuals who have lost work due to the recent lockdown of Greater Sydney may be eligible for the disaster payment offered by the Federal Government which was introduced on 3 June 2021 in response to the most recent Victorian lockdown.
To be eligible, individuals must meet all of the following:
- be an Australian resident, or hold an eligible working visa
- be 17 years or older
- not receiving an income support payment, the Pandemic Leave Disaster Payment, a state or territory pandemic payment or a state small business payment for the same period
- live or work in a Commonwealth-declared COVID-19 hotspot
- had paid employment prior to lockdown, and because of the lockdown you can’t attend work on or after day 8 of lockdown
- lost income on or after day 8 of lockdown and don’t have any appropriate paid leave entitlements; and
- you have liquid assets of less than $10,000.
Liquid assets are any funds readily available to you in cash or savings, or assets that can easily be changed into cash quickly. For example, money loaned to other people.
If you’re a member of a couple, you can both claim this payment. You and your partner will need to make separate claims.
Individuals meeting the eligibility criteria above may receive a one off payment of $500 where they have lost 20 hours or more of work, or $325 where they have lost less than 20 hours of work.
Applications for the Federal Government COVID-19 Disaster Payment can be made through Services Australia from 1 July 2021.
Please contact your Moore Australia advisor today if you would like further information in relation to any of these packages.