Major update to the NSW JobSaver Payment

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From Friday the 10th of September, you will need to reconfirm your business still meets the eligibility criteria every fortnight to continue to receive your ongoing support payments.

That is, you need to confirm with ServiceNSW that you have maintained your employee headcount and that you continue to experience a decline in turnover of more than 30%.

In order to be eligible for the JobSaver payment for the most recent fortnight, the business must have experienced a decline in turnover of at least 30% from the 30th of August to the 11th of September 2021 compared to either the same period in 2019, OR the same period in 2020, OR the 2 week period immediately before any NSW restrictions (12 to 25 June 2021 inclusive). However, you must choose the same year for your comparison period as in your initial application.

The Next Steps:
To reconfirm your eligibility, you must log into the MyServiceNSW account that was used to submit the application and navigate your business profile.

To ensure you are ready to test if you have experienced a decline in turnover, we suggest reconciling your bookkeeping files as soon as possible up to the 11th of September.

We note that the decline in turnover will be measured based on the GST turnover. As such, if you report GST turnover on your BAS to the ATO on an accrual basis, you should use this method. If you report GST turnover on your BAS to the ATO on a cash basis, you should use this method.

There is currently no need to submit any supporting evidence or accountants letter.

If you are unsure of your eligibility, please contact HYD Advisory on (02) 8543 6800 or email your client manager directly so that we can arrange for an accountant to assist you with your turnover check.

Our team are currently working remotely and are available to assist you with lockdown support for your business. We want to reassure clients that we’ll be on hand to talk with you about your business issues and give you the confidence you need to make good decisions to keep your business alive in these difficult times.

Assets V Cashflow Podcast

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Assets V Cashflow Podcast

In this episode of The Property Experience, your host Anna Porter is joined by Mark Pinhorn of HYD Advisory – Harvest your dreams.

They discuss Assets V Cashflow – What should business owners be focused on for 2021.

The dynamic duo cover things like;

💥 Should business owners tie up capital and cash flow to have property and non-property assets in their business in this economic climate?

💥 If business owners have surplus cash flow how can they spend it / invest it?

💥 Is property investment something business owners should strive for or is too high risk to tie up capital?

💥 Commercial V residential investing for business owners, is there a preference and why?

 

Listen to the Podcast now >>

Business Matters Newsletter – Winter 2021

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Click here to download the Business Matters Newsletter – Winter 2021

 

Profit Matters Newsletter – Winter 2021

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Click here to download the Profit Matters Newsletter – Winter 2021

 

JobSaver Program – Major Boost to COVID-19 Support

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It has been announced that the joint NSW Government and Commonwealth JobSaver program will be significantly boosted to give greater support to businesses and individuals impacted by the extended lockdown.

The maximum weekly payment has been substantially increased, with employing businesses that maintain their employee headcount now able receive between $1500 and $100,000 per week, up from $10,000, with payments based on 40 per cent of their weekly NSW payroll.

JobSaver payments will now be available to businesses with an annual turnover of between $75,000 and $250 million, up from $50 million, which have experienced a revenue decline of 30 per cent or more.

Prime Minister Scott Morrison has also announced an increase to the weekly payments received under the Covid-19 Disaster Payment, with a maximum payment now $750 per week (increased from $600).

For further information, please click the links below:

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

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

Please don’t hesitate to contact HYD Advisory to discuss your eligibility or the process of the JobSaver on (02) 8543 6800 or email your client manager directly.

Our team are currently working remotely and are available to assist you with lockdown support for your business. We want to reassure clients that we’ll be on hand to talk with you about your business issues and give you the confidence you need to make good decisions to keep your business alive in these difficult times.

JobSaver Applications Open Today

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The second round of COVID-19 NSW Business Support is available today.

Eligible businesses may be entitled to a JobSaver payment which will provide fortnightly cashflow support to impacted businesses to help keep their businesses afloat, maintain relationships with their employees and be in a position to trade when restrictions are lifted. The payment is intended to assist those businesses that have been impacted from week 4 of the Greater Sydney lockdown (from the 18th of July 2021 onwards).

Both employing and non-employing businesses, such as sole traders, may be eligible for the JobSaver payment.

The payment is equivalent to 40% of the weekly payroll for work performed in NSW:

  • minimum payment will be $1,500 per week
  • maximum payment will be $10,000 per week

If you’re a non-employing business, such as a sole trader, you may be eligible to receive a payment of $1,000 per week.
 

Applications are made on the ServiceNSW website: https://www.service.nsw.gov.au/transaction/jobsaver-payment

Before applying for the JobSaver, we recommend that you check you meet the eligibility criteria and have the necessary documentation and evidence ready. See below for further information.
 
Eligibility Criteria

Eligible businesses must:

  • Have an active ABN
  • Be able to demonstrate they were operating in NSW as at 1 June 2021
  • Have had an aggregated annual turnover between $75,000 and $50 million for the year ended 30 June 2020
  • Have experienced a decline in turnover of 30%
  • For employing businesses, maintain employee headcount as at 13th of July 2021
  • For non-employing businesses, show that the business is the primary income source for the associated period.

 
To determine whether you meet the decline in turnover requirement, businesses must test their turnover for a minimum 2-week period from 26 June 2021 compared to the same period in 2019.

Businesses that applied and were eligible for the 2021 COVID-19 business grant will generally automatically be eligible for the JobSaver but must provide further information on employee headcount and payroll.

Businesses that were not eligible for the grant will need to conduct a decline in turnover test to determine eligibility. Please contact HYD Advisory for assistance with your turnover test.
 
If your business is not on the highly impacted industries list, you are required to submit a letter from HYD Advisory as evidence that you have experienced a decline in turnover.

To review the highly impacted industries list please see the following link:
https://www.service.nsw.gov.au/jobsaver-payment-guidelines#attachment-a-list-of-highly-impacted-industries
  
To maintain employee headcount means the employer will not take active steps to end the employment relationship with their employees. Employees who have been stood down under the Fair Work Act 2009 or take leave without pay are considered employees for the purpose of headcount. Employees can receive Commonwealth COVID-19 Disaster Payments if their employer is receiving JobSaver.
 
Once deemed eligible, businesses will receive automatic fortnightly payments. Businesses will not need to re-apply but must notify Service NSW if they are not maintaining the number of employees they had on 13 July 2021. Payments will be made in arrears with the first payment backdated to 18 July.
 
Documentation and evidence

To prepare for the application, you will need the following:

  • A MyServiceNSW Account – if you haven’t already setup an account, you can do so here: https://account.service.nsw.gov.au/
  • Proof of identity documents – such as drivers licence, Medicare card, birth certificate, etc. – you may be able to use identification documents already stored on your MyServiceNSW account
  • Your ABN/ACN
  • You business bank account details
  • The businesses 2020 income tax return or notice of assessment– please contact HYD Advisory if you require a PDF copy of this
  • An accountants letter – to confirm the decline in turnover
  • Evidence of weekly payroll – for businesses that submit a BAS this will generally be their most recent BAS that was submitted to the ATO prior to 26 June 2021 within the 2020-21 financial year

 
The Next Steps

Application are now available on the ServiceNSW website: https://www.service.nsw.gov.au/transaction/jobsaver-payment

Once you have checked your eligibility and have all documentation ready, you can select the above link then follow the steps below:
 

  1. Select the ‘Apply online’ button.
  2. Log in, or create your MyServiceNSW Account.
  3. Select and verify your identity documents.
  4. When your identity is verified, select ‘Continue’.
  5. Confirm your personal details.
  6. Enter your business details and answer the eligibility questions, then select ‘Next’.
  7. Provide information about your decline in turnover and upload your supporting documentation, then select ‘Next’.
  8. Enter your bank details, then select ‘Next’.
  9. Review your application.
  10. Check the declaration boxes.
  11. Select ‘Submit’ to complete your application.

 
Please don’t hesitate to contact HYD Advisory to discuss your eligibility or the process of the JobSaver on (02) 8543 6800 or email your client manager directly.

Our team are currently working remotely and are available to assist you with lockdown support for your business. We want to reassure clients that we’ll be on hand to talk with you about your business issues and give you the confidence you need to make good decisions to keep your business alive in these difficult times.

NSW COVID-19 ASSISTANCE

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NSW COVID-19 ASSISTANCE

On 13 July 2021, the NSW and Federal Governments announced their economic support package aimed at supporting businesses and residents to deal with the recent COVID-19 lockdown.
 
Outlined below is a snapshot of the key economic support measures being offered to those dealing with the economic ramifications of the health and safety requirements currently being experienced by the community. Please refer to the relevant administering body for the specific eligibility criteria and application process as applicable.
 
Businesses can register their interest in the key business support measures that are administered by Service NSW here.

On 13 July 2021, the NSW and Federal Governments announced their economic support package aimed at supporting businesses and residents to deal with the recent COVID-19 lockdown.
 
Outlined below is a snapshot of the key economic support measures being offered to those dealing with the economic ramifications of the health and safety requirements currently being experienced by the community. Please refer to the relevant administering body for the specific eligibility criteria and application process as applicable.
 
Businesses can register their interest in the key business support measures that are administered by Service NSW here.

 


Economic support measure
 

Summary of Government assistance

NSW 2021 business grant
 
Administered by Service NSW at service.nsw.gov.au with registrations open from 19 July, 2021.
 
The Federal Government has indicated that these payments will not be taxable.

Eligible NSW businesses (including sole traders and not-for- profit organisations) with Australian wages below $10 million can claim grants between $7,500 and $15,000 as a result of the COVID-19 restrictions.
Three different grant amounts will be available depending on the decline in turnover experienced during the restrictions, being:

  • $7,500 for a decline of 30% or more;
  • $10,500 for a decline of 50% or more; or
  • $15,000 for a decline of 70% or more.

Saving Jobs – NSW small and medium business support payments

Administered by Service NSW
at service.nsw.gov.au
 
The Federal Government has indicated that these payments will not be taxable.

Eligible NSW businesses with an annual turnover of between $75,000 and $50 million that can demonstrate a 30% reduction in turnover (compared to an equivalent two- week period in 2019) will be entitled to business support payments from week four of the lockdown.
Eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1,500 and a maximum of
$10,000 per week.
Assistance will cease when the current lockdown restrictions are eased, or when the Commonwealth hotspot declaration is removed.
To receive the payment, entities will be required to maintain their full time, part time and long-term casual staffing level as of 13 July 2021.
For non-employing businesses (e.g., eligible sole traders) the payment will be set at $1,000 per week.

Micro business grants
 
Administered by Service NSW
at service.nsw.gov.au
 
The Federal Government has indicated that these payments may not be taxable.

Eligible ‘micro businesses’ (including sole traders) with a turnover of between $30,000 and $75,000 that have experienced a decline in turnover of at least 30% will be eligible for payments of $1,500 per fortnight of restrictions from late July 2021.

NSW Payroll concessions
 
Administered by Revenue NSW at revenue.nsw.gov.au

NSW payroll tax concessions include:

  • Payroll  tax  waivers  of  25%  for  businesses  with grouped Australian wages of between $1.2 million and

$10 million that have experienced a 30% decline in turnover.
Payment deferrals and interest-free repayments.

NSW Land tax concessions
 
Administered by Revenue NSW at revenue.nsw.gov.au

NSW Land tax relief concessions include:

  • Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially-distressed tenants is available for up to 100% of the 2021 NSW land tax year liability

A capped grant up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants.

Short-term eviction moratorium and other tenant safeguards
 
More information available at Fair Trading NSW at fairtrading.nsw.gov.au

The NSW Government will introduce a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19 and meets other eligibility criteria.
 
In addition, it will restrict recovery of security bonds, lockouts or evictions of impacted retail and commercial tenants prior to mediation.

Targeted industry support

Other targeted industry support measures include:

  • The deferral of gaming tax assessments for clubs until 21 December 2021 and hotels until 21 January 2021.
  • A $75 million support package for the performing arts sector (administered by Create NSW).

A $26 million package for the accommodation sector.

COVID-19 Disaster Payment
Support for individuals
 
Administered by Services Australia at servicesaustralia.gov.au
 
This payment is assessable income to the individual recipient.

The COVID-19 Disaster Payment was originally introduced in response to the previous two-week Victorian lockdown (and was made applicable to all future Commonwealth-declared COVID-19 hotspots). The payment is not applicable for the first seven days of an eligible lockdown (i.e., it is payable to eligible recipients from the second week) and now, in response to the current NSW lockdown,  the  Federal  Government has extended this support for individuals who  have  lost work (and pay) as a result of the COVID-19 lockdowns.
Specifically, from week four of the lockdown, the COVID-19 Disaster Payment will increase:

  • from $500 to $600 each week if a person has lost 20 hours or more of work a week; or
  • from $325 to $375 each week if a person has lost between 8 and 20 hours of work (or a full day of their usual work hours per week).

This will be a recurring payment for approved recipients for as long as the Commonwealth-declared hotspot and lockdown restrictions remain in place. Furthermore, from 18 July 2021, this payment will be available to eligible NSW residents outside Commonwealth-declared hotspots (which will be funded directly by the NSW Government).
HYD ADVISORY CLIENTS – WHAT YOU CAN EXPECT FROM US

YOUR CLIENT MANAGER WILL BE IN TOUCH THIS AFTERNOON WITH FURTHER SPECIFIC DETAILS REGARDING THE NSW GOVERNMENT COVID-19 SUPPORT.

If you have any concerns regarding your circumstances please contact your client manager on (02) 8543 6800 or email them directly.

NSW and Federal Government co-fund COVID support package

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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.

NSW Government announces additional major grants package

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NSW Government announces additional major grants package

On Tuesday 29 June the NSW Treasurer Dominic Perrottet announced a major grants package for businesses affected by the recent COVID-19 outbreak and ensuing two week lockdown.
 
The lockdown is expected to wipe $2b off Australia’s GDP. In response, the Government will release grants between $5,000 and $10,000 for small businesses and additional payroll tax deferrals for all employers.
 
The grants are split into two streams to cover small businesses as well as tourism providers impacted by the lockdown over the school holiday break.
Businesses can apply for grants through Service NSW later in July, and will need to show a decline in turnover across a minimum two-week period after restrictions commenced on June 26.

 Decline in revenue (%)

Grant available

70%

$10,000

50%

$7,000

30%

$5,000

If you have any concerns regarding your circumstances please contact your client manager on (02) 8543 6800 or email them directly.

Lockdown Support – Are you Eligible?

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Lockdown Support – Are you Eligible? 

If you can’t work because you or someone in your household is impacted by COVID-19, there is support available, however it comes with fairly strict eligibility criteria.
 
There are two payments accessible to individuals: The COVID -19 Disaster Payment; and the Pandemic Leave Disaster Payment. Both payments are accessible through Services Australia and applications can be made through your MyGov account if you have created and linked a Centrelink account.

COVID-19 Disaster payments
Contrary to news reports, the COVID-19 disaster payment is not accessible to “everyone” in lockdown – strict eligibility rules apply.
 
The COVID-19 disaster payment is available to eligible workers who can’t attend work or who have lost income because of a lockdown and don’t have access to paid leave entitlements.  And, it only applies from the eighth day of lockdown. That is, there is nothing you can claim for the first week of a lockdown.
 
What’s a hotspot?
The disaster payment is only accessible if the hotspot triggering the lockdown lasts more than 7 days as declared by the Chief Medical Officer (you can find the listing here). In Sydney’s case, the City of Sydney, Waverley, Woollahra, Bayside, Canada Bay, Inner West and Randwick were Commonwealth declared hotspots from 23 June 2021 with the hotspot extended until 2 July 2021 – meaning that the COVID-19 disaster payment is available to eligible workers in those areas from 1 July 2021. Greater Sydney was declared a hotspot from 26 June 2021.
 

Hotspot declaration

Date of declaration

Disaster payment accessible from

City of Sydney, Waverley, Woollahra, Bayside, Canada Bay, Inner West and Randwick

23 June 2021

1 July 2021

Greater Sydney including the Blue Mountains, Central Coast and Wollongong

26 June 2021

4 July 2021

Greater Melbourne

27 May 2021

4 June 2021

 
You need to be living or working in a hotspot for it to apply to you.
 
Claim periods apply. For Melbourne’s lockdown for example, the disaster payment was accessible from 4 June until 10 June 2021, and those impacted have until 2 July 2021 to claim the disaster payment for the applicable lockdown period.
 
How much is the payment?
The COVID-19 disaster payment depends on how many hours of work you have lost in the lockdown period.
 

Hours lost

Disaster payment amount

Less than 20 hours work

$325

20 hours or more of work

$500

 
The payment applies to each relevant period of lockdown.
 
The payment is taxable and you will need to declare it in your income tax return.
 
Are you eligible for the COVID-19 disaster payment?
The COVID-19 disaster payment is emergency relief. It is available if you:

  •  Are an Australian citizen, permanent resident or temporary visa holder who has the right to work in Australia, and
  • Are aged 17 years or over, and
  • Can’t attend work and lost income on or after day 8 of a COVID-19 lockdown, and
  • Don’t have access to appropriate paid leave entitlements through your employer, and
  • Are not getting an income support payment, a state or territory pandemic payment, Pandemic Leave Disaster Payment or state small business payment for the same period.

 
In addition, you need to declare that you do not have liquid assets of more than $10,000.
 
Legislation passed Parliament last week retrospectively enabling the disaster payments to people who lost work because of COVID-19 lockdowns in Melbourne and enabling future payments to 30 June 2022.

Pandemic Leave Disaster Payment
The Pandemic Leave Disaster Payment is for those who have been advised by their relevant health authority to self-isolate or quarantine because:

  • you have coronavirus (COVID-19)
  • you’ve been in close contact with a person who has COVID-19
  • you care for a child, 16 years or under, who has COVID-19
  • you care for a child, 16 years or under, who’s been in close contact with a person who has COVID-19.

The payment might also be accessible if you are a carer for someone impacted.
 

How much is the payment?
The payment is $1,500 for each 14 day period you are advised to self-isolate or quarantine. If you are a couple, you both can claim this payment if you meet the eligibility criteria.
 
Are you eligible for the Pandemic Leave Disaster Payment?
The Pandemic Leave Disaster Payment is emergency relief. It is available if you:
 

  • Are an Australian citizen, permanent resident or temporary visa holder who has the right to work in Australia, and
  • Are aged 17 years or over, and
  • Are unable to go to work and earn an income, and
  • Do not have appropriate leave entitlements, including pandemic sick leave, personal leave or carers leave, and
  • Are not getting any income support payment, ABSTUDY Living Allowance, Paid parental leave or Dad and Partner Pay.

 
The payment is taxable and you will need to declare it in your income tax return.
  
Disclaimer: The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

 

If you have any concerns regarding your circumstances please contact your client manager on (02) 8543 6800 or email them directly.