NSW Covid-19 Business Grant Guidelines 19 July 2021

The 2021 COVID-19 Business Grant application is open today and will close on 13 September 2021.

Here’s the application link:

https://www.service.nsw.gov.au/transaction/2021-covid-19-business-grant

The NSW government has released the guidelines to assist businesses assess their eligibility and prepare for the claims. The guidelines can be found on https://www.service.nsw.gov.au/2021-covid-19-business-grant-guidelines . We draw your attention to the following:

3-Tier Grant

This has been previously announced. The payment you receive is not taxable.

Test period & benchmark period

• The decline in turnover test applies to a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to the same period in June and/or July 2019. 

Alternative circumstance

• If your business turnover in June/July 2019 was not representative of your usual or average turnover (eg: due to drought or bushfires), you can contact Service NSW and provide the turnover figures in an appropriate alternative benchmark period to demonstrate you have been significantly impacted. It is up to the Service NSW to assess your decline in turnover.

• New businesses (significantly impacted by the Public Heath Orders) that were not operating for the full year to 30th June 2020 but can demonstrate income consistent with $75,000 per annum over a shorter period prior to 26 June 2021, may still be eligible to apply. You should contact Service NSW if this is the case.

Tier 1 & Tier 2 applicants on the ‘highly impacted business list’

• Please refer to section 5.1 of the guidelines for a list of declarations and evidence required. You are required to provide accountant/tax agent details for possible compliance check.

Loewy Consulting Partners Pty Ltd

Tax Agent Number: 2569 6194

Tel: 02 9362 3332

Tier 3 applicants and applicants outside the ‘highly impacted business list’ • In addition to the above, tier-3 applicants and applicants outside the ‘highly impacted business list’ will be required to submit evidence that they experienced the required decline. Please contact this office if you require accountant letters.

Requirement to maintain employee headcount

• In the application, you will be required to declare your employee headcount at 13 July 2021 and declare that you will maintain their employee headcount as at 13 July 2021 for the period for which the business is receiving payments under this Grant and the JobSaver scheme.

• Maintain their employee headcount means maintenance of the employer-employee relationship consistent with employment law. Employers will, however, remain eligible if employees voluntarily resign. You may want to seek advice from your employer lawyers.

NSW government has a right to audit

• By applying for the Grant, businesses agree that their application may be subject to an audit by the NSW Government or its representatives and agree to participate in the process if required.

• NSW government mentioned in the letter template, the invoice dates must be consistent with normal business practice and have not been manipulated for the purpose of receiving the Grant.

• We draw your attention to Section 4 of the guidelines: How funding may be used. The Grant is designed to help eligible organisations with business costs incurred from 1 June 2021 to 18 July 2021. You may be asked by the NSW government to provide supporting evidence e.g.: business expenditure invoices to substantiate the claims.

JobSaver scheme (wages rebate), Micro Business Support and Other Support Measures

• We expect the guidelines of other support measures to be released around 26th July.

Banks COVID Support

• Major banks have announced fresh support measures to help businesses and individuals affected by Sydney's extended COVID-19 lockdown. Please contact your bank if you need loan repayment deferrals or other support.

We again address the importance of maintaining accurate business turnover records and other appropriate records for verification purposes. The onus on any claim rests with the taxpayers seeking the relief.

If you require any assistance with 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.