Important Update NSW Support Programs 6 August 2021

Updated based on the information released on Service NSW website as of 4pm on 6 August 2021.

It has come to our attention the terms of the three programs on Service NSW websites have been updated today.

• NSW grant

• JobSaver

• Micro Business grant

Please note our summary is based on the information updated on the Service NSW website today. We endeavour to provide timely update and actions plans based on our interpretation of the rules and changes thereon. Such changes are subject to legislations. It is ultimately up to Service NSW to assess individual cases and approve the applications.

If you are already eligible to receive Tier-3 ($15,000) NSW grant, JobSaver, or Micro business grant, today’s changes will not affect you.

NSW grant rule changes

Eligibility changes

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

• have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to:

o the same period in 2019, or

o the same period in 2020, or

o the 2-week period immediately before the Greater Sydney lockdown commenced (11 June to 25 June 2021)

Applicants are given two more comparison period options.

Action plan

• If your business failed the decline in turnover test under the old NSW Grant rules, you should conduct tests under the new rules and re-assess eligibility thereon.

• If your business is already eligible to receive Tier 1 ($7,500) or Tier 2 ($10,500) NSW grant payments. You may possibly be eligible for higher payments under the new rules if you can demonstrate higher decline in turnover by using the newly announced comparison periods (i.e., same period in 2020 or 2 weeks immediately before the lockdown). To that extent our office has contacted Service NSW and was told applicants may contact Service NSW (13 77 88) and submit an amendment to the previous NSW grant application. Please note the above advice came from the Service NSW officer we spoke to. Your request to amend the NSW grant application will be subject to Service NSW’s assessment under the new rules yet to be legislated.

Jobsaver rule changes

Eligibility changes

https://www.service.nsw.gov.au/transaction/jobsaver-payment

To be eligible for JobSaver your business or not-for-profit organisation should:

• have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June and due to end 28 August 2021) compared to:

o the same period in 2019, or

o the same period in 2020, or

o the 2-week period immediately before lockdown commenced (11 to 25 June 2021)

Action plan

• Businesses are now allowed to compare any minimum 2 weeks between 26 June and 28 August 2021 with 3 alternative periods. If you were ineligible under the old rules, you should monitor business turnover in August and run the tests under the new rules to assess eligibility.

Micro business grant rule changes

Eligibility changes

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

To be eligible for the grant, you must:

• have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June 2021 and due to end 28 August 2021), compared to:

o the same period in 2019, or

o the same period in 2020, or

o the 2-week period immediately before the Greater Sydney lockdown commenced (11 June to 25 June 2021)

Action plan

• Micro businesses are also allowed to compare any minimum 2 weeks between 26 June and 28 August 2021 with 3 alternative periods. If you were ineligible under the old rules, you should monitor business turnover in August and run the tests under the new rules to assess eligibility.

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.