With restrictions in place for people in NSW, we called upon AFC Affiliate Partner Olvera Advisors to help find out how the latest government initiatives and grants can help your business get through this tough time.
The NSW lockdown has had immediate and profound impacts, with many businesses struggling to survive this latest hit. The NSW Government will be offering financial support to NSW businesses impacted by the recent COVID-19 restrictions and stay-at-home orders. The key grants available include:
- Covid-19 Small Business Grants 2021
- Job Saver
- Payroll Tax Support
- Support with Tenancy
- Covid-19 Micro-business grants
1. Covid-19 Small Business Grants 2021
This grant has been introduced to alleviate cash flow constraints during the lockdown, with a one-off payment. The amount received depends on the decline in turnover experienced over a minimum 2-week period from 26 June 2021 to 26 July 2021, compared to the same period in 2019:
- $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 will cover the first three weeks of lockdown, with payments set to start in late July 2021, if eligible.
- Have an active Australian Business Number (ABN)
- Demonstrate your business was operating in NSW as at 1 June 2021
- Have had total annual Australian wages of $10 million or less as at 1 July 2020
- Aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020
- Have business costs for which there is no other government support available
- Maintain your employee headcount as at 13 July 2021
The grant can be used for various business costs incurred from 1 June 2021, including:
- Utilities, wages, and rent
- Financial, legal, or other advice to support business continuity planning
- Marketing and communications activities to develop the business
- The cost of perishable goods that can no longer be used
- Other activities to support the operation of the business
The clothing retail industry is listed on the highly impacted industries list, and the Service NSW website provides the evidence required for the various grants. Of key importance, if applying, the SME needs to establish that no other government support is available, as only one grant is available for a single ABN.
For SMEs on the NSW Border with Victoria impacted by these lockdowns, may apply using a different comparison period, being a minimum 2-week period from 27 May 2021 to 26 July 2021, to demonstrate a decline in turnover.
Applications for this grant open on 19 July 2021 and close at 11:59pm on 13 September 2021.
Covid-19 Small Business Grants 2021 Links
- Apply for the 2021 COVID-19 business grant
- 2021 COVID-19 business grant Guidelines
2. Job Saver
This grant provides cashflow support in the form of fortnightly payments to help maintain employee headcount as at 13 July. The period covered by this grant is 19 July 2021 onwards.
The amount received for eligible businesses are:
- Employing businesses: 40% of weekly payroll, with a minimum payment of $1,500 per week and a maximum payment of $10,000 per week
- Non-employing business: $1,000 per week
- A revenue decline of 30% or more
- Turnover between $75,000 and $50 million
Expressions of interests can be made from 14 July 2021, and applications open from 26 July 2021.
Job Saver Links
- Job Saver Overview
3. Payroll Tax Support
This grant provides the following assistance:
- 25% reduction in FY22 payroll tax for eligible businesses
- Payroll tax payments deferred until 7 October 2021 for all businesses
- Interest free 12-month repayment plans for deferred payroll tax
To be eligible for the payroll tax waivers, businesses must have Australian wages of between $1.2 million and $10 million and have experienced a 30 per cent decline in turnover.
The period covered is the full lockdown period.
Payroll Tax Support Links
- Payroll Tax Support information
4. Tenancy Support
The NSW Government has imposed a rule that landlords cannot evict retail or commercial tenancies who were impacted by the lockdown without mediation. Additionally, land tax relief is available for landlords who reduce the rent for impacts tenants up to 100% of their 2021 land tax liability.
These protections are available for the whole lockdown period.
The Small Business Commissioner website provides further details regarding mediation and application forms.
Tenancy Support Links
- Small Business Commissioner Website
5. Covid-19 Micro-business grants
To be considered a micro-business, which includes sole traders, your business must have an annual turnover between $30,000 and $75,000. This grant provides a tax-free payment of $1,500 per fortnight of restrictions, with payments starting in late July 2021, for those eligible.
Micro-businesses are also receiving the same support regarding tenancy. Landlords cannot evict retail or commercial tenancies without mediation. This support will last throughout the lockdown. Furthermore, land tax relief is also provided to landowners who reduce rent for affected tenants between 1 July and 31 December 2021.
To be eligible for a grant, your revenue must have declined by 30% or more.
The period covered is from the start of lockdown and is administered through Service NSW.
Importantly, if you classify as a sole trader, you will not be eligible for both the NSW Covid-19 Micro Business Grant and the Covid-19 Disaster Payment.
Summary of all Available Assistance Links
- COVID-19 Support for individuals and businesses PDF
- COVID-19 business support – 2021
6. Support for commercial tenants
The NSW Government will re-introduce the National Cabinets mandatory Code of Conduct for Commercial Leasing to provide rent relief for eligible tenants impacted by the lockdowns and restrictions due to COVID-19.
The Retail and Other Commercial Leases Regulation will prohibit landlords from evicting or locking out tenants for certain breaches of the lease unless they have first renegotiated rent taking into consideration the National Cabinet’s Code of Conduct. The Code of Conduct requires landlords to provide rent relief in proportion with their tenant’s decline in turnover. Of the rent relief provided, at least 50 per cent must be in the form a waiver, and the balance a deferral.
By reintroducing the code, small businesses who have bills piling up will be provided with more certainty and relief during this disruptive time.
The Regulation applies to commercial and retail tenants with a turnover of up to $50 million who qualify for the COVID-19 Micro-business grant, COVID-19 Business Grant or JobSaver Payment.
More information for tenants can be found in the
- Commercial Leases and COVID-19 FAQs
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