NSW and Federal Government co-fund COVID support package
NSW and Federal Government co-fund COVID support package
Yesterday the NSW and Federal Government has announced additional support measures for businesses and individuals in NSW. The Greater Sydney lockdown as announced today will continue till end of July.
As the country’s largest State (NSW), the Sydney lockdown could have a significant impact on the whole economy. In the press conference last night, the Prime Minister said that this outbreak was more severe, more dangerous and it was in the national best interest to put in place additional support when outbreaks go for a protracted period of time.
Cash flow boost for businesses
From week four of the lockdown, the NSW and Federal Government will co-fund small and medium business support payments, similar to the cash flow boost released last year.
This support is targeted at NSW entities, including not-for-profits, with an annual turnover between $75,000 and $50 million, and has a turnover that is 30% lower than an equivalent two week period in 2019.
Eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1500 and a maximum of $10,000 per week.
Importantly, entities will be required to maintain their full time, part time and long term casual staffing level as of 13 July 2021 to receive the payment.
For non-employing businesses, such as sole traders, the payment will be set at $1,000 per week.
Businesses can register their interest from today at www.service.nsw.gov.au
NSW business grants
The NSW Government has expanded their grants program. NSW businesses with up to $10 million in payroll tax can claim grants between $7,500 and $15,000 to cover the first three weeks of restrictions.
A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30% was also announced yesterday. Businesses will be eligible for a $1500 payment per fortnight of restrictions.
Payroll tax waivers of 25% is available for businesses with Australian wages of between $1.2 million and $10 million that have experienced a 30 per cent decline in turnover, as well as payroll tax deferrals and interest free repayment plans.
Complementing the grants scheme, the Commonwealth will also provide additional support through the tax system, by making NSW small business grants, including the new small business payments, tax exempt. In addition, there is administrative relief to NSW taxpayers facing hardship, including reduced payment plans, no interest charged on late payments and varying instalments on request.
National disaster payment scheme expanded and co-funded
The disaster payment scheme has been expanded to address the protracted nature of the greater Sydney lockdown. As of yesterday, anyone who has lost more than 8 hours of work per week can access the disaster payment.
People who have lost more than 20 hours of work can access a $600 per week, up from $500. People who have lost 8 hours and up to 20 hours of work can access $375 per week, up from $325.
We will provide more details in coming days as it becomes available.
If you have any concerns regarding your circumstances please contact your client manager on (02) 8543 6800 or email them directly.
