Scott Morrison and Gladys Berejiklian have jointly announced a raft of new support measures for the state of NSW in response to the prolonged lockdown in Greater Sydney.

The Federal and NSW Governments will jointly fund a new Small and Medium Business Support Payment for eligible NSW businesses. In addition, the NSW Government has expanded the previously announced grants and introduced some additional support measures for businesses.

In his announcement, the Prime Minister declared that the Commonwealth support packages would be available to any state or territory that experienced an extended lockdown.

We’ve summarised some of the support available to businesses and how you can access it:

SMALL AND MEDIUM BUSINESS SUPPORT PAYMENTS

The Commonwealth and NSW Governments will jointly fund a new Small to Medium Business Support payment to eligible (non-employing and employing) entities in NSW, including not for profits. 

Eligibility

Entities will be eligible if:

• Their turnover is 30 per cent lower than an equivalent two-week period in 2019
• Their annual turnover is between $75,000 and $50 million
• They maintain their full time, part time and long-term casual staffing level as of 13 July 2021

Payment Amount

• Eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1,500 and a maximum of $10,000 per week
• For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week

NSW GOVERNMENT’S SMALL BUSINESS GRANTS

The NSW Government has extended and expanded the previously announced grants program with grants between $7,500 and $15,000 available to eligible businesses with annual Australian wages up to $10 million. 

Available Grants Include:

• Small Business COVID-19 Support Grant
• Hospitality and Tourism COVID-19 Support Grant  (note this grant may become redundant – we are awaiting more details)

The NSW Government has also announced a Micro Business Grant of $1,500 per fortnight for eligible businesses with turnover between $30,000 and $75,000.

COVID-19 DISASTER PAYMENT

The Federal Government has expanded the existing COVID-19 Disaster Payment support available to individuals living in a declared COVID-19 hotspot.

From week 4 of the lockdown, weekly payments can be claimed by individuals who have lost more than 8 hours or a full day of work in a week. The payments are as follows:

• lost 20 hours or more – $600 (previously $500)
• lost between 8 and 20 hours – $375 (previously $325)

Individuals will need to meet additional eligibility criteria.

PAYROLL TAX DEFERRAL AND RELIEF

All businesses paying payroll tax in NSW will be able to defer their payroll tax payments until 7 October 2021.

Businesses with annual payrolls between $1.2m and $10m may be eligible for a payroll tax relief of 25% of the business’ annual liability.

LANDLORD SUPPORT

Land Tax relief of up to 100% of the land tax liability will be available to residential and commercial landlords that pay land tax and reduce rents for their tenants.

For residential landlords that reduce their tenant’s rent and not liable to land tax, a grant of up to $1,500 may be available on application if qualifying criteria are met.

COMMONWEALTH BUSINESS TAX RELIEF

Additional Commonwealth tax relief was also announced:

• NSW small business grants will be tax exempt
• Administrative relief will be provided to NSW taxpayers facing hardship. This includes reduced payment plans, no interest charged on late payments and varying instalments on request.

YOUR NEXT STEPS

• Register your expression of interest on the Service NSW website so that you are notified when available.
• Consult with us in regards to the various eligibility requirements including decline in turnover calculations.
• Apply via the Service NSW website from 19 July (Small Business COIVD-19 Support Grant) or 26 July (Micro Business Grant).
• Covid-19 Disaster Payment, assess your eligibility against the criteria and apply via Services Australia website.

For more information visit Service NSW Website, or contact us.

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