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last updated 21/07/2021

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Everything you need to know about the July 2021 NSW COVID-19 Grants

With the latest lockdown restrictions extended for another two weeks, the New South Wales government has introduced a few new support measures on 15th July 2021 for both businesses and individuals alike. 

While much of the information is still being finalised, we thought we’d give you an update on what we know so far and what you can expect going forward. 

The relief ranges from payroll support, tax relief and cash flow boosts. 

Applications will open on 19 July 2021 and close at 11:59pm on 13 September 2021. So, there is still ample amount of time to apply for grants and there is no need to panic.

This guide is suitable for 

  1. Business owners
  2. Commercial and Residential Property Landlords 
  3. Accommodation providers (i.e. Airbnb and Hotels)
  4. Individuals

So here’s what you need to know. 

 

What Can Businesses Expect From The NSW COVID-19 Business Grants? 

1.1 COVID-19 Micro Business Grants 

Available to: Companies & Sole Traders with a turnover between $30k and $75k

Payment frequency: Fortnightly

Amount:

  • $1,500 per fortnight

Who is Eligible?

  • A turnover between $30k and $75k
  • Your business revenue has declined by 30% in a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019..
  • Businesses that provide the primary income source for a person associated with the business.

How to apply:

What you need:

  • a MyServiceNSW Account
  • your proof of identity
  • your valid ABN/ACN number
  • your business banking details for payment
  • Australian income tax return or Notice of Assessment
  • A qualified accountant, registered tax agent or registered BAS agent

 

1.2 JOBSAVER 

Available to: Companies & Sole Traders with an annual turnover of more than $75k

Payment Frequency: Weekly

Amount:

  • Companies: Based on 40% of your NSW payroll level and is capped at a maximum of $10,000 per week.
  • Businesses that does not have employees: Payment amount for non employing entities such as sole traders will be capped at $1,000 per week.

Who is Eligible?

The following list of eligibility criteria have been announced:

  • Your business revenue has declined by 30% in a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019.
  • Your business has an annual turnover above $75,000.
  • Businesses that meet the turnover eligibility requirements must also maintain all the employees including full-time, part-time and long-term casual staffing. This is in line with the government’s core objective of protecting jobs throughout the pandemic. 
  • Not-for-profit organisations are also eligible to apply for the cash flow boost. 
  • Non-employing businesses, such as sole traders, may similarly apply for the cash flow boost if the business experienced a 30% turnover reduction.

Businesses that cannot demonstrate the minimum $75,000 aggregated annual turnover or the minimum decline in turnover should contact Service NSW as they may still be eligible to apply if they:

  • were not operating for the full year to 30 June 2020 (e.g. they are a new business) but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021, and they can demonstrate they have been significantly impacted by the Public Health Orders, or
  • their turnover in June/July 2019 was not representative of their usual or average turnover (e.g. due to drought or bushfires) which is usually $75,000 per annum or more, and they can demonstrate they have been significantly impacted by the Public Health Orders.

What you need:

  • a MyServiceNSW Account
  • your proof of identity
  • your valid ABN/ACN number
  • your business banking details for payment
  • Australian income tax return or Notice of Assessment
  • A qualified accountant, registered tax agent or registered BAS agent.

How to Apply:

 

1.3 COVID-19 One-Off Payment Business Grant 

Available to: Companies & Sole Traders with an annual turnover of more than $75k

Payment frequency: One-off

Amount: 

  • Tier 1: $7,500 for a decline of 30% or more
  • Tier 2: $10,500 for a decline of 50% or more
  • Tier 3: $15,000 for a decline of 70% or more
  • Your business revenue is compared with an equivalent 2 weeks period in 2019 and 2021
  • The period of comparison in 2021 must be during the July 2021 lockdown period (26 June 2021 to 17 July 2021)
  • Eligible businesses may only receive one grant tier
  • Only one grant is available for a single ABN
  • Multiple businesses under a single ABN are only eligible for one grant

Who is Eligible?

  • Your business revenue has declined by 30% (Tier 1), 50% (Tier 2), 70% (Tier 3) in a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019.
  • You have an Australian Business Number (ABN) and were operating in New South Wales as at 1 June 2021.
  • Your business has an annual turnover above $75,000.
  • Your total payroll must be below $10 million.
  • You have business costs for which there is no other government support available.
  • Not-for-profit organisations are also eligible to apply for the one-off grant if they meet the eligibility criteria stated above. 
  • Non-employing businesses, such as sole traders, may similarly apply for the one-off grant if it meets the eligibility criteria stated above.
  • If your business is on the Victorian border and is impacted by the NSW lockdown that commenced on 27 May 2021, you may similarly apply for the one-off grant if you meet the eligibility criteria stated above however the referenced period will be over a minimum 2-week period from 27 May 2021 to 17 July 2021 compared to the same period in May and/or June and/or July 2019.

Businesses that cannot demonstrate the minimum $75,000 aggregated annual turnover or the minimum decline in turnover should contact Service NSW as they may still be eligible to apply if they:

  • were not operating for the full year to 30 June 2020 (e.g. they are a new business) but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021, and they can demonstrate they have been significantly impacted by the Public Health Orders, or
  • their turnover in June/July 2019 was not representative of their usual or average turnover (e.g. due to drought or bushfires) which is usually $75,000 per annum or more, and they can demonstrate they have been significantly impacted by the Public Health Orders.

How can the funding be used?

  • The grant must be used for business costs such as:
  • 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; or
  • Other activities to support the operation of the business.

The funding cannot be used for:

What you need:

  • A MyServiceNSW Account.
  • Your proof of identity.
  • Your valid ABN/ACN number.
  • Your business banking details for payment.
  • Submit an Australian income tax return or Notice of Assessment to prove your annual turnover.
  • Declare evidence that your business have eligible expenses for which no other government support is available. Receipts would need to be kept in your company file in case of a future audit.
  • Declare your business employee headcount as at 13 July 2021.
  • Declare that your business will maintain the employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme.
  • Eligible businesses any of the one-off grants that are NOT on the ‘highly impacted industries list will be required to submit an Accountants Letter provided by a qualified accountant, registered tax agent or registered BAS agent that shows your total annual wages and decline in turnover to ServiceNSW.
  • Businesses on the ‘highly impacted industries list‘ that are eligible for the $7,500 (tier one) and the $10,500 (tier two) grant are only required to declare and keep evidence of your decline in turnover. They are not required to submit the evidence or provide an Accountants Letter.
  • However, for business on the ‘highly impacted industries list’ applying for the $15,000 grant (tier 3), you will be required to submit an Accountants Letter provided by a qualified accountant, registered tax agent or registered BAS agent that shows your total annual wages and decline in turnover to ServiceNSW.
  • Provide details of a qualified accountant, registered tax agent or registered BAS agent to ServiceNSW for possible compliance checking.
 

Ineligible businesses

A business is not eligible for the 2021 COVID-19 Business Grant if any of the following apply:

  • the Major Bank Levy was imposed on the entity or a member of its consolidated group for any quarter before 1 July 2021
  • the entity is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997)
  • the entity is a local governing body
  • the entity is wholly owned by an Australian government agency or local governing body
  • the entity is a sovereign entity or owned by a sovereign entity
  • the entity is a company in liquidation or provisional liquidation
  • the entity is an individual who has entered bankruptcy
  • the entity has been found to have been engaged in fraud
  • the entity primarily earns passive income (rents, interest, or dividends).

How to Apply:

 

How Has Payroll Support Been Extended?

Beyond the cash flow boost, the NSW government have also extended some of the original COVID-19 business grants and payroll support:

1.4 Payroll Tax Concessions

Amount: 

  • 25% payroll tax waiver for FY 2021-2022

Who is Eligible?

  • Your business revenue in an equivalent 2 weeks period in 2019 as compared to 2021 has declined by 30%. The period of comparison in 2021 must be during the July 2021 lockdown period
  • If your business pays wages amounting to between $1.2 million and $10 million

How to Apply:

 

1.5 Payroll Tax Deferrals

Amount: 

  • Deferral of 2020-21 reconciliation (due 28 July) and payments due on 7 August and 7 September until 7 October 2022

Who is Eligible?

  • Any business paying payroll tax

How to Apply:

 

I cannot afford to pay rent for my business premise. Are there any concessions or grants for this? 

 

1.6 Tenants in Commercial or Retail Premises

Impacted tenants are protected by the Small Business Commissioner. Landlords will not be able to lock out or evict impacted tenants without first going to mediation. We recommend you to negotiate with your landlord to either defer your rental payments or reduce it.

Who is Eligible?

  • Tenants must have an annual turnover of $50 million or less
  • Tenants must be eligible for either the Micro-business COVID-19 Support Grant, the COVID-19 NSW Business Grant, or the JobSaver Scheme

How to Apply:

 

I am a landlord and my tenants cannot afford or are refusing to pay rent. What support do I have from the government?

 

2.1 Landlords Leasing Commercial Properties

Amount: Payment up to 100% of 2021 land tax

Payment frequency: One-off

Who is Eligible?

  • For landlords who provide at least that much rental relief to tenants who are eligible for the
    • Micro-business COVID-19 Support Grant
    • 2021 COVID-19 NSW Business Grant and/or
    • JobSaver scheme

How to Apply:

 

2.2 Landlords Leasing Residential Properties

Amount:

  • $1500 grant to residential landowners to pass onto their tenants, OR
  • Concession of up to 100% of 2021 land tax

Who is Eligible?

  • Residential landlords who are not liable to pay land tax can claim a capped grant of up to $1,500 if they have reduced their rent payment for tenants. 
  • Landlords are, however, temporarily prohibited from evicting tenants with rental arrears if they have suffered a 25% loss in income due to the pandemic restrictions.

How to Apply:

 

I have an Airbnb business and my clients have cancelled their Airbnb bookings. What support do I have from the government?

 

3.1 Grants for Accommodation Providers

Help will be available for eligible tourism accommodation providers that have lost business during the school holiday period. Assistance will be based on the number of cancelled ‘room nights’.

Amount:

  • $2,000 for up to 10 room nights
  • $5,000 for 11 or more room nights

Who is Eligible?

  • For room nights lost during the 25 June to 11 July period
  • Must be able to show evidence of cancellations

How to Apply:

 

Individual COVID-19 Disaster Payments

Businesses are not the only ones receiving support from the NSW government. As of 18 July 2021, eligible NSW residents can apply for an increased COVID-19 Disaster Payment of up to $600 per week.

 

Who is Eligible?

The following list of eligibility criteria have been announced as of 13 July 2021: 

  • Provided that you have lost 20 hours or more of work a week, you can claim a $600 disaster payment per week (up from $500 per week). 
  • If you’ve lost between 8 hours and 20 hours of work a week, you’ll be eligible to claim between $325 and $375 per week. 

To streamline the payment process and to avoid having to apply each week, disaster payment will be recurring for eligible recipients for as long as the Commonwealth-declared hotspot and lockdown restrictions remain in place. 

Key Takeaways

While the extended lockdown restrictions are far from ideal, the NSW government has responded favourably. It is offering NSW residents and businesses some much-needed relief to manage this second wave of COVID-19 related regulations, including: 

  • a cash flow boost, 
  • extended business grants, 
  • payroll tax relief, 
  • landlord support, 
  • tenant support (non-monetary – can’t be evicted for rental arrears), and 
  • individual COVID-19 disaster payments (national scheme extended for NSW hotspots).

 

You will find that small businesses may be eligible for multiple grants altogether as the eligibility criteria are repeating on several grants. If you are unsure of which grant you are eligible for, feel free to Book an appointment to speak to an accountant

You can either apply for the business grants yourself via the Service NSW website, or you can contact us at Box Advisory Services to help you submit your application. 

To claim the disaster payment, you need a myGov account linked to a Centrelink online account.

If you’re feeling unsure about the eligibility requirements, make sure to get in touch, and we’ll help you navigate the latest NSW support payments. 

FAQS:

1. What if I am a new business operating in NSW but I have not started operations in 2019, I have experienced a reduction in turnover of more than 30% due to the lockdown restrictions. Am I still eligible for any of the small business COVID-19 grants?

Answer: Maybe. Businesses that cannot demonstrate the minimum $75,000 aggregated annual turnover or the minimum decline in turnover should contact Service NSW as they may still be eligible to apply if they:

  • were not operating for the full year to 30 June 2020 (e.g. they are a new business) but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021, and they can demonstrate they have been significantly impacted by the Public Health Orders, or
  • their turnover in June/July 2019 was not representative of their usual or average turnover (e.g. due to drought or bushfires) which is usually $75,000 per annum or more, and they can demonstrate they have been significantly impacted by the Public Health Orders.

2. What if I am a new MICRO business operating in NSW but I have not started operations in 2019, I have experienced a reduction in turnover of more than 30% due to the lockdown restrictions. Am I still eligible for the COVID-19 Micro Business Grant?

Answer: Maybe, Where a business cannot demonstrate a $75,000 turnover, the business should contact Service NSW to discuss further.

3. What if I operate my business through a trust structure, does it impact anything?

Answer: Where a business operates through a trust structure, the applicant will be required to provide additional information to demonstrate an aggregated annual turnover of $75,000 or more is derived through the trust, as opposed to a business linked to a trust.

4. What documents can ServiceNSW request to determine eligibility?

  • accountant’s letter
  • prior BAS statements
  • income tax declarations
  • audited profit and loss statements
  • receipts and invoices from purchases.

5. What if I am unable to provide the documents listed above?

Answer: Where a business is unable to provide these documents, or where Service NSW is satisfied it has other suitable methods to determine eligibility, Service NSW may accept another form of documentation.

6. Does cash/accrual methods impact anything?

Answer: The Australian Taxation Office Goods and Services Tax (GST) concept will be applied when assessing whether an applicant experienced a 30% or more decline in national turnover. Therefore, if you have lodged GST on a Cash basis, your turnover test will be based on a cash basis. Alternatively, if you have lodged GST on an accrual basis, your turnover test will be based on an accrual basis.

Disclaimer:
Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available to property buyers and investors. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal, tax or investment advice. You should, where necessary, seek your own advice for any legal, tax or investment issues raised in your affairs.

 

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