2021 Covid-19 Support Package

The NSW Government has announced a new grants package and changes to the Dine & Discover program to help tens of thousands of businesses and people across NSW impacted by the current COVID-19 restrictions. This includes regional businesses impacted by a loss of trade during the school holiday period.

Key elements of the program

1. Small Business COVID-19 Support Grant

Designed to help businesses pay for expenses such as power, utilities, rent and wages while trading is restricted.

2. Hospitality and Tourism COVID-19 Support Grant

For businesses in the hospitality and tourism industry (total wages below $10 million), in recognition of the challenges lockdown poses to these businesses.

Eligible businesses receiving either the Small Business Grant or the Hospitality and Tourism Grant can receive:

• $10,000 for a decline in turnover of 70%, or more

• $7000 for a decline in turnover of 50%, or more

• $5000 for a decline in turnover of 30%, or more.

Eligibility criteria

Small businesses and not for profits

Small businesses and not-for-profits will be eligible for the 2021 Small Business COVID-19 Support Grant if they:

• have fewer than 20 full time equivalent employees

• have an Australian Business Number (ABN) registered in NSW or can demonstrate they are physically located and primarily operating in NSW. Only one grant is available for a single ABN

• have total Australian annual wages below the NSW Government 2020-2021 payroll tax threshold of $1,200,000 as at 1 July 2020

• have an annual turnover of more than $75,000 as at 1 June 2021

• have not applied for, or received, the Hospitality and Tourism COVID-19 Support Grant

• have business costs for which there is no other government support available.

Tourism and hospitality businesses

Tourism and hospitality businesses will be eligible for a Hospitality and Tourism COVID-19 Support Grant if they:

• have an ANZSIC code that is classified as a tourism or hospitality business

• have an Australian Business Number (ABN) registered in NSW or can demonstrate they are physically located and primarily operating in NSW. Only one grant is available for a single ABN

• have total annual Australian wages below $10 million as at 1 July 2020

• have an annual turnover of more than $75,000 as at 1 June 2021

• have not applied for, or received, a 2021 Small Business COVID-19 Support Grant

• have business costs for which there is no other government support available

Sole traders and not-for-profits

Sole traders and not-for-profits can apply if they have turnover over $75K and meet all other eligibility criteria.

Regional NSW businesses

Regional NSW businesses can apply if they have been impacted by the public health restrictions, given school holidays are an important trading period for businesses across NSW.

How to apply

Applications for grants must be made through Service NSW, (www.service.nsw.gov.au) with the application process due to go live later in July 2021.

To apply, businesses will need to compare their turnover over a minimum two-week period after lockdown commenced, to a minimum two-week period in June and/or July 2019.

Businesses that were not operating in June/July 2019 may still be able to apply for the grants. These businesses should contact Service NSW to discuss their application.

Other NSW Support

• Dine & Discover vouchers have been extended to 31 August 2021

• An optional deferral of payroll tax payments due in July 2021

Federal Government COVID-19 Disaster Payment

The Federal Government is providing a support payment for workers adversely affected by a state public health order

https://www.servicesaustralia.gov.au/individuals/services/centrelink/covid-19 -disaster-payment

If you require any further information in regards to this, please do not hesitate to contact our office

Important: Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.